Analysis Giga-projects End of ‘blank cheque’ culture for Saudi consultancy Saudi Arabia remains a boom town for the global consultancy industry, but experts have warned it is no longer the land of milk and honey for international operators and there is now a tighter hold being placed on budgets. The Saudi consultancy market, the largest in the GCC, expanded by 18.2 percent in 2023 with […] December 23, 2024
Analysis Markets Talabat and Lulu post-listing slump dims allure of UAE IPOs Talabat and Lulu Retail Holdings were the UAE’s biggest initial public offerings (IPOs) in 2024, raising $3.75 billion amid huge investor demand. But the stock price of both companies have slid since listing on the Dubai and Abu Dhabi bourses respectively, threatening investor confidence in future UAE flotations involving privately run companies. It has also […] December 23, 2024
Trade Trump tariffs: Middle East braces for pain after gain Middle East exporters to the US are likely to see a short-term increase in business ahead of the much talked about trade tariffs which are expected to be announced when Donald Trump returns to the White House next month. The US president-elect campaigned on a protectionist America-first agenda, promising to introduce sweeping tariffs globally. Trump […] December 23, 2024
OpinionECONOMYIf Russia is headed towards economic malaise, it has big repercussions for the ‘neutral’ Gulf Frank Kane, Editor-at-Large, AGBI
OpinionBANKING & FINANCEThe Gulf has posted record IPO volumes and is a bright spot in the global equity landscapeAndy Cairns, Head of MEA capital markets
OpinionENERGYAdnoc would be the most obvious Gulf oil buyer for BP’s world-class trading businessRobin Mills, CEO, Qamar Energy
Analysis Economy Why Saudi Arabia expects public debt to rise Saudi Arabia expects its public debt to steadily rise in the next three years, despite the massive financial reserves controlled by the central bank and the Public Investment Fund (PIF). Estimates by the Saudi Finance Ministry show that public debt will swell by around SAR375 billion ($100 billion) between the end of 2024 and the […]
EXCLUSIVE Real Estate Damac secures rights to build Trump Tower Abu Dhabi The Dubai luxury developer Damac Properties has secured the rights to build a Trump Tower in Abu Dhabi, sources familiar with the matter have told AGBI, as the Trump Organisation expands its footprint in the Gulf. Damac has an established relationship with the Trump Organisation, the family business of US President-elect Donald Trump, with a […]
Analysis Oil & Gas UAE to shake up old world order as oil trading centre For years, Geneva, London, Amsterdam and Singapore have been the preferred homes of middlemen helping to move crude oil and its derivatives around the world. But recent geopolitical and economic shifts have paved the way for the UAE to emerge as a trading powerhouse, attracting international talent and rivalling the old world order. The UAE […]
Analysis Oil & Gas How Adnoc’s XRG will achieve its bold investment ambitions When XRG, the newly formed investment arm of the Abu Dhabi National Oil Company (Adnoc), launched last month it said that it wanted to double its $80 billion in assets under management by 2035. For comparison, Abu Dhabi’s ADQ, the world’s 10th largest sovereign wealth fund and the younger sibling of Adia and Mubadala, had […]
Analysis Tax UAE’s corporate tax rules pose a complex challenge Companies operating in multiple countries with differing tax regulations face a complex challenge to comply with the UAE’s higher corporate earnings bracket announced this month. The UAE has said it will increase corporate tax on multinationals to 15 percent of profit from January 1, 2025. The higher rate will apply to companies operating in more […]
Tax UAE indirect taxes generate up to $3bn per year Indirect taxes in the UAE generate between AED10 and AED11 billion ($2.72 billion-2.99 billion) annually, contributing substantially to the Gulf state’s AED65 billion federal budget, a senior government official has said. These tax revenues bolster economic growth and fortify the federal government’s financial position, the UAE state-run Wam news agency reported, quoting Younis Haji Al Khoori, […] December 23, 2024
Finance AD Ports boosts liquidity with upsized credit facility The UAE’s AD Ports Group has refinanced and upsized its existing revolving credit facility, more than doubling its size to enhance its liquidity position. The credit facility was increased from $1 billion to $2.13 billion, incorporating tranches in both AED and USD to optimise financing costs by improving interest margins, the UAE state-run Wam news […] December 23, 2024
Analysis Markets Talabat and Lulu post-listing slump dims allure of UAE IPOs Talabat and Lulu Retail Holdings were the UAE’s biggest initial public offerings (IPOs) in 2024, raising $3.75 billion amid huge investor demand. But the stock price of both companies have slid since listing on the Dubai and Abu Dhabi bourses respectively, threatening investor confidence in future UAE flotations involving privately run companies. It has also […] December 23, 2024
Finance Kushner’s Affinity raises new capital from QIA and Lunate US investment firm Affinity Partners, founded by Jared Kushner, has secured an additional $1.5 billion from the Qatar Investment Authority (QIA) and Lunate, an Abu Dhabi-based alternative investment fund. Talks about raising additional capital began in February and concluded before the US election, Bloomberg reported, quoting Kushner on a podcast episode of Invest Like The […] December 22, 2024
EXCLUSIVE Real Estate Damac secures rights to build Trump Tower Abu Dhabi The Dubai luxury developer Damac Properties has secured the rights to build a Trump Tower in Abu Dhabi, sources familiar with the matter have told AGBI, as the Trump Organisation expands its footprint in the Gulf. Damac has an established relationship with the Trump Organisation, the family business of US President-elect Donald Trump, with a […] December 21, 2024
Real Estate Real estate fund behind billion riyal Madinah development A billion-riyal mixed-use project has been launched in Madinah as the inaugural development of a new Saudi Arabia real estate fund. The development fund is a collaboration between the Knowledge Economic City Company (KEC), Sidra Capital and Ravel Properties. The fund will develop a 33,2300sq m plot of land along King Abdulaziz Road, which is […] December 23, 2024
Banking & Finance Subscribers to Saudi private investment funds rise by half The number of subscribers to private investment funds in Saudi Arabia has increased by more than half in the last year, official figures showed. Around 131,000 subscribers were recorded in the third quarter of 2024, according to the Argaam platform, citing data from the Saudi Central Bank (Sama). This is an increase of 55 percent […] December 23, 2024
Analysis Economy Why Saudi Arabia expects public debt to rise Saudi Arabia expects its public debt to steadily rise in the next three years, despite the massive financial reserves controlled by the central bank and the Public Investment Fund (PIF). Estimates by the Saudi Finance Ministry show that public debt will swell by around SAR375 billion ($100 billion) between the end of 2024 and the […] December 23, 2024
Manufacturing Alba and Ma’aden delay merger to Q2 2025 The deadline on a potential merger between Aluminium Bahrain (Alba) and subsidiaries of Saudi Arabia’s Ma’aden has been extended into the second quarter of 2025. It had been hoped that a deal between the two manufacturing giants could be completed in the first quarter, according to Alba’s chief executive, Ali Al Baqali. But a note […] December 23, 2024
Analysis Giga-projects End of ‘blank cheque’ culture for Saudi consultancy Saudi Arabia remains a boom town for the global consultancy industry, but experts have warned it is no longer the land of milk and honey for international operators and there is now a tighter hold being placed on budgets. The Saudi consultancy market, the largest in the GCC, expanded by 18.2 percent in 2023 with […] December 23, 2024
Oil & Gas Iraq has a tough job to balance Opec quotas with its capacity goals Iraq is facing some tough choices and conflicts when it comes to its national oil policy. While its oil production is expected to rise by only around 200,000 barrels per day (bpd) in the next two years, in line with a new supply restraint accord by Opec+, it already has plans to boost output capacity […] December 23, 2024
Opinion Banking & Finance Bridging the missing middle of Gulf startup funding As investment opportunities multiply, there will be increasing need for intermediate growth capital December 23, 2024
Retail Mena ecommerce up 44% in November Ecommerce in the Middle East and North Africa enjoyed a prosperous November with sales 44 percent higher than the year’s monthly average. Online transactions in 2024 were healthy as a whole, with 5 percent growth on the previous 12 months. Unsurprisingly Black Friday, the global marketing ploy that businesses use to offer big discounts, was […] December 23, 2024
Economy GCC economy to grow at 4.5% in 2025 on oil support The GDP of the six Gulf Cooperation Council (GCC) countries is forecast to grow at a higher pace in 2025 to reach 4.5 percent. While the regional GDP is expected to grow by 3.7 percent in 2024, it will stabilise at 3.5 percent in 2026, the UAE state-run Wam news agency reported, quoting a Statistical […] December 23, 2024
Oil & Gas Qatar threatens LNG halt over EU due diligence law Qatar has threatened to cease liquefied natural gas (LNG) shipments to the European Union (EU) if the bloc enforces a corporate sustainability due diligence directive, according to a news report. The directive, set to take effect in 2027, imposes penalties for companies failing to meet stringent standards on environmental protection and forced labour in supply […] December 23, 2024
Manufacturing Alba and Ma’aden delay merger to Q2 2025 The deadline on a potential merger between Aluminium Bahrain (Alba) and subsidiaries of Saudi Arabia’s Ma’aden has been extended into the second quarter of 2025. It had been hoped that a deal between the two manufacturing giants could be completed in the first quarter, according to Alba’s chief executive, Ali Al Baqali. But a note […] December 23, 2024
Finance Kushner’s Affinity raises new capital from QIA and Lunate US investment firm Affinity Partners, founded by Jared Kushner, has secured an additional $1.5 billion from the Qatar Investment Authority (QIA) and Lunate, an Abu Dhabi-based alternative investment fund. Talks about raising additional capital began in February and concluded before the US election, Bloomberg reported, quoting Kushner on a podcast episode of Invest Like The […] December 22, 2024
Tax More taxes could shield GCC from protectionism, says IMF GCC countries should consider new taxation options to shore up their public finances and shield their economies from rising global protectionism, according to the International Monetary Fund. That means regional governments need to continue diversifying away from fossil fuels and boost the role of the private sector, all the while identifying new tax revenues and […] December 20, 2024
Oil & Gas US gives Turkey sanctions waiver for gas payments to Russia The US has given Turkey an exemption from sanctions on Gazprombank for its gas payments to Russia, the Turkish energy minister Alparslan Bayraktar said on Friday. New sanctions on Russia’s Gazprombank were imposed by the US in November, creating an obstacle for buyers of Russian gas, who had been using the bank to make payments. […] December 20, 2024
Aviation Turkey’s Pegasus places firm order for 100 Boeing jets Turkish low-cost carrier Pegasus Airlines has placed a firm order for 100 Boeing 737 Max-10 aircraft with the option for an additional 100 jets. The Max-10, the largest model in the 737 Max family, can accommodate up to 230 passengers and has a range of 3,566 miles (5,740 kilometres). The aircraft offers a 20 percent reduction […] December 20, 2024
Tech Turkey space race gains pace with Somalia launch facility Turkey is building a rocket-launching facility in Somalia, boosting its ambition to join the global space race. The project is expected to generate jobs and revenue, Bloomberg reported, citing Somalia president Hassan Sheikh Mohamud. “I personally believe that the importance of Somalia hosting a launchpad for Turkish satellites is even more significant than the billions […] December 19, 2024
Banking & Finance Banks strike debt deal to take stake in Istanbul’s cruise port Five banks will take a 49 percent stake in Istanbul’s luxury cruise terminal after striking a debt restructuring deal worth €1.02 billion ($1.1 billion) with Dogus Group, owned by Turkish billionaire Ferit Şahenk. Under the agreement, Yapi Kredi Bankasi AS will acquire up to a 13 percent stake in Galataport Istanbul Liman İşletmeciliği ve Yatırımları […] December 18, 2024
Tourism Winter resorts add to Turkey’s tourist hotspots Sun, sand, sea … and ski. Turkey is ramping up efforts to extend its tourism season to a year-round offering by trying to raise the profile of the country’s winter resorts. This way it hopes to attract a new cohort of visitors, seeking the thrill of skiing on snow rather than water. Turkey currently has […] December 18, 2024
Economy Europe to loan $1bn to Egypt to meet part funding needs The European Commission has agreed to disburse €1 billion ($1.04 billion) in loans to Egypt to cover part of its financing needs for 2024/2025. The loan will be released after Cairo fulfils the policy conditions agreed with the European Union (EU) under the ongoing macro-financial assistance. The funding will also support macroeconomic stability and support […] December 23, 2024
Markets Masdar-backed Infinity Power considers Abu Dhabi IPO Infinity Power, a joint venture between Egypt’s Infinity and the UAE’s Masdar, is considering listing on the Abu Dhabi stock exchange within the next three years, according to its chairman. “If we’re going to list today, our preference would be Abu Dhabi,” Mansour said. “Maybe that changes in a year or two. It depends on […] December 18, 2024
Aviation Cairo-Jeddah is world’s second busiest international route The Cairo to Jeddah flight route is the second busiest international route in the world, behind only Hong Kong-Taipei, according to the annual report from aviation data provider OAG. Using total airline capacity, OAG analysed the routes with the largest volume of scheduled seats this year, using round-trip flights rather than one-ways. The two-hour and […] December 18, 2024
Energy BP and Adnoc launch joint gas platform Arcius Energy BP and XRG, the new lower carbon energy and chemicals investment company set up by Abu Dhabi National Oil Company (Adnoc), have completed the formation of a joint venture named Arcius Energy. The new venture, 51 percent owned by BP and the remaining 49 percent by XRG, will focus on international gas operations. It will […] December 16, 2024
Industry Egypt to localise 23 industrial sectors Egypt aims to localise 23 high-priority sectors to spur industrial development and reduce reliance on imports, according to a local media report. These industries are critical to the country’s economic growth and leverage locally available raw materials, Egypt Daily reported, citing deputy prime minister for industrial development and minister of industry and transport Kamel El-Wazir […] December 16, 2024
Analysis Health Gulf’s growth in retirees drives demand for senior services Changing demographics globally are paving the way for a new seniors industry in the Gulf. UAE-headquartered Aster DM Healthcare and Bahrain’s GFH Financial Investment Group are Gulf household names that have entered this fledgling but promising business with targeted medical and property services. The baby boomer generation now ranges between 60 and nearly 80 years […]
People & Lifestyle Global inspirations for Dubai’s ‘walkability’ mission From Singapore to Bologna, Dubai should cast its net wide for examples in its ambitions to transform into a pedestrian-friendly city
People & Lifestyle Abu Dhabi thinks big to attract super-wealthy From exclusive schools and members’ clubs to private banking and wealth management institutions, Abu Dhabi is ramping up efforts to attract family offices and ultra-high-net-worth individuals to the emirate. US private equity investor Leon Black, who has a net worth of about $14 billion, in September opened a branch of his family office in Abu […]
Analysis Finance Cultural factors reduce risk for Gulf BNPL providers Buy-now-pay-later companies in the US and Europe have endured prolonged losses due to high operating costs and rising customer defaults, but BNPL operators in the Gulf may be faring better thanks to differing market dynamics, according to analysts. BNPL has soared in popularity in many regions as an easy and cheap form of consumer debt, […]
Analysis People & Lifestyle Egypt’s historic rent controls are a problem to be solved Ahmed lives in a four-bedroom apartment in a concrete tenement with his ailing mother. The flat has been in the family since his father, who died several years ago, began renting it when he graduated from university in the 1960s. It is in Manial, a bustling, lower-middle-class area of Cairo, the kind of place where […]
Economy Billionaires in UAE rise as Saudi numbers drop The number of billionaires in the UAE increased in the last year as the amount of super-wealthy residents in neighbouring Saudi Arabia dropped. Forty-eight billionaires lived in the UAE in 2023, with a combined wealth of $205 billion, a year-on-year increase of 7 percent. Dubai made up 39 of that total and welcomed one extra […]
Health AI in healthcare is not a cure-all solution Large language models such as the AI chatbot ChatGPT are gaining traction in healthcare, and Gulf states are investing heavily in the prospect, but LLMs’ integration into clinical practice presents challenges. A study led by Dr Ethan Goh, published last month in the Journal of the American Medical Association Open Network, tested whether ChatGPT could […]
Analysis Health Golden returns draw investors to fitness markets Investors are showing increasing interest in homegrown fitness companies, tempted by the “golden egg” returns on offer. The fitness market in the Middle East and North Africa (Mena) has been growing at an annual rate of 30 percent since 2020, with the UAE sector valued at an estimated $550 million and Saudi Arabia at $1.7 […]
Tourism Salvator Mundi destined for Riyadh giga-park The $450 million Leonardo Da Vinci painting Salvator Mundi is destined for a museum of art inside the King Salman Park giga-project in Riyadh in time for hosting the World Expo in 2030, two separate sources have said. The artwork is a big part of Saudi Arabia’s plans to rebrand itself globally as a socially […]
Analysis Real Estate Building more homes a better strategy for Kuwait, say experts Kuwait has tightened property ownership restrictions on non-GCC nationals in an attempt to make real estate more affordable for locals, but industry watchers say building more homes would be the better strategy. The small, oil-rich emirate has already imposed strict standards on nationals of countries from outside the Gulf who wanted to purchase domestic real […]
Analysis Health Bahrain government rebuffs citizens’ quota in healthcare A unanimous call by the Bahraini parliament for half the jobs in private healthcare to be reserved for citizens has been rejected by the government on the grounds of possible harm to patients and the potential impact on foreign direct investment. Government officials told the National Assembly that the proposed quota would constrain private healthcare’s […]
Analysis Health Healthy progress made in Saudi Arabia’s wellness drive Private health services in Saudi Arabia are rapidly expanding as its growing population and the focus on improving citizens’ wellbeing under the Vision 2030 programme bring in billions of dollars in new domestic and foreign investments. During the Global Health Exhibition, held in Riyadh at the end of October, Saudi officials announced deals worth $13.3 […]
Editor's Insight Transport Trains, planes and more trains (or metros) Is it finally happening? It was conceived back in 2013 and was supposed to take four years to build but the Riyadh metro looks like it is about to open. To the hard-pressed inhabitants of the Saudi capital, that can only be a good thing. Alternatives to the car and bus – Riyadh has a new […]
Trade Exports to India from UAE more than double in November Exports to India from the UAE more than doubled year on year to over $6 billion in November, as demand for gold and energy products soared. Imports from India were up by over 11 percent in the same month, reaching $3 billion, data released by India’s commerce ministry showed. Emirati exports to India from April […]
Oil & Gas Kenya extends oil deals with Saudi Arabia and UAE Kenya has extended oil import agreements with one Saudi and two UAE oil companies to ease pressure on its currency, according to media reports. The deals were initially signed with Saudi Aramco, Abu Dhabi National Oil Company and Emirates National Oil Company in March 2023, offering a 180-day credit period, Business Daily newspaper reported. Reuters […]
Markets US fund managers expected to accelerate Gulf investment North American fund managers are underinvested in Gulf equities but that may soon change, according to new research. The region’s low correlation to global and other emerging markets, accelerating economic diversification and improving bourse diversification could make Gulf investments more attractive. Saudi Arabia (4.41 percent), the UAE (1.28 percent), Qatar (0.86 percent) and Kuwait (0.84 […]
Oil & Gas Oil shipments from UAE to Asia to be cut next year The UAE is reducing its oil shipments early next year as Opec+ pushes for compliance with production cuts in order to try to stop prices falling. However it is unclear if this means that the country – Opec’s fifth largest producer – is cutting its output, analysts have told AGBI. Adnoc, the UAE’s state-owned oil […]
