Dubai launches major crackdown on economic crimes…

UAE News:
Real GDP in Abu Dhabi grew by 3.5% YoY in Q2(Q1: 3.9%), bringing the half-year growth this year to 3.7% (H1 2022: 10.5%). Non-oil growth surged, touching AED 154.11bn in Q2 (12.3% YoY & 5.5% QoQ): the highest quarterly non-oil GDP reading since 2014. The financial sector grew the most in Q2 (29.8% YoY – the fastest pace since 2014), followed by construction (19.1%) and transportation & storage (16.9%). 
Dubai attracted 511 greenfield projects in H1 2023, topping the global list and accounting for 6.58% of total greenfield FDI projects (H1 2022: 3.83%). Dubai’s greenfield FDI projects account for 65% of the total announced FDI projects (880 projects, +70% YoY) during the period.
The UAE was ranked fourth globally in terms of international tourist spending by the UN World Tourism Organisation, behind the US, Spain and the UK, with visitors spending AED 224bn in 2022.
Hotels in the UAE generated revenues worth AED 26bn (+24% YoY) in January-July 2023, after hosting 16mn guests (15%+ YoY). The hotel occupancy rate reached 75% from January-July, up 5% YoY.
The Ministry of Human Resources and Emiratisation disclosed that over 6.5 million employees have subscribed to the Unemployment Insurance Scheme from January 1st (when registration started) to October 1st, 2023.
Dubai has launched a new platform as it looks to crack down on money laundering, terror funding, bribery, forgery and embezzlement.
 
Regional News:
The World Bank expects growth in the MENA region to slow to 1.93% YoY in 2023, from 6.2% in 2022. Growth in the GCC has been revised lower to 1% in 2023 (from 3.2% in the Apr update): this compares to 2022’s 7.3% growth but a recovery is expected in 2024 (to 3.6%). Within the GCC, Saudi Arabia is expected to grow at just 0.03% in 2023 (2022: 8.7%).
Two banks in Egypt have suspended the use of EGP debit cards outside the country, citing the foreign currency shortage.
Iraq will ban cash withdrawals and transactions in US dollars starting January 2024, according to a central bank official, seen as a broader push to de-dollarise the economy. From 2024, dollars deposited can be withdrawn only in local currency at the official rate of 1,320, substantially below the black market rate.
Lebanon issued a circular limiting fees and commissions that commercial banks can impose on “Lollar” accounts (i.e. dollars deposited in Lebanese banks before the economic crisis in October 2019). This move, if implemented, should increase transparency on bank fees.
Luxury hotels in Oman reported a 26.3% YoY surge in revenues to OMR 138.38mn (USD 359.4mn) in January-August 2023. Hotel guests were up by 26.7% to 1.28mn during the period while hotel occupancy grew by 10.4%.
According to the Central Bank of Oman, employment opportunities in Oman grew by 16.2% YoY in 2022: opportunities were up by 3.6% and 23.3% for citizens and expats respectively.
GCC tourism ministers will submit views on a unified GCC visa by end-Dec: GCC welcomed 39.8mn inbound visitors in 2022 (136.6% YoY) and spending jumped by 101.2% to USD 85.9bn.
Three ports in the MENA region – Oman, UAE and Morocco – are among the top 5 most efficient ports globally, as published in Unctad’s latest Review of Maritime Transport. Qatar and Saudi Arabia were ranked 8th and 17th respectively.
Start-ups in the MENA region saw a total of USD 36mn being raised across 36 deals in September 2023. UAE and Saudi dominated the list: the former saw 14 deals worth over 27mn while Saudi secured USD 2.7mn from 7 deals. Year-to-date total investment stands at USD 1.8bn, inclusive of USD 687mn from debt financing.
The Saudi energy minister revealed that trials of the first hydrogen train in the Middle East will begin this week, and “hopefully for the next few months”. He also disclosed, without providing details, that Saudi will be launching a “credible, transparent and adaptable domestic market mechanism” on Monday.
A Ministry of Energy official revealed that Saudi Arabia will continue oil production cuts of 1mn barrels per day (bpd) in November and December implying that the production in November-December will be around 9mn bpd.
Saudi Arabia is putting in a bid to host the 2034 FIFA World Cup: this announcement comes given its ongoing plans to welcome football fans as it hosts the 2023 FIFA Club World Cup (in December) and the 2027 AFC Asian Cup.
 
Global News
Major equity markets were down last week, while US markets benefitted from the strong payroll data signalling a continued, strong US labour market. Regional markets were mostly down, as oil prices fell, with Bahrain and Oman posting slight gains. The euro gained vis-à-vis the greenback after 11 weeks of straight declines, while the yen rose to above JPY 150 on Tuesday (a nearly 1-year high) before tumbling (potentially due to government intervention). Oil prices posted the steepest weekly loss since March: Brent by 11% and WTI by just over 8%. Gold price went through a 9-day losing streak before gaining some ground on Friday, but closed with a weekly loss (-0.9%).

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SOURCE:
Nasser Saidi & Associates
Arabian Business