Dubai Rises as Epicentre of PropTech Innovation…
PropTech startups in the MENA region secured $200 million in funding in the first half of 2024.
UAE News:
UAE Central Bank revised its GDP forecast for 2024 to 4.0%, with growth supported by the non-oil sector (5.2% in 2024, lower than 2023’s 6.2%). Oil sector is expected to recover in 2025 as production resumes. Inflation in the UAEinched up to 2.4% in June 2024 (May: 2.3%), with upticks in housing and utilities (3.1% from 3.0%), recreation & culture (4.2% vs 1.2%) and insurance & financial sector (6.6% vs 4.3%).
New Zealand and the UAE have agreed to a trade deal, removing 98.5% duties on New Zealand’s exports (rising to 99% within 3 years). Bilateral trade between the two nations stood at USD 813.5mn in June 2023-June 2024 period. With trade negotiations having begun this May, the four month+ duration is the fastest conclusion to a trade agreement by New Zealand.
During the UAE President’s visit to the US, UAE was designated as a major defence partner by the US, enabling close military cooperation through joint training, exercises and other collaborative efforts. India is the only other country designated as a major defence partner by the US. Furthermore, a new customs cooperation agreement was signed between the two nations to reduce violations and combat illicit trade among others.
UAE Ministry of Finance raised AED 25bn – AED 11.2bn worth of bonds and AED 13.8bn in sukuk – through the issuance of government bonds and sukuk by end-August.
Passenger traffic through UAE airports grew by 14.2% YoY to over 71.7mn travellers in H1 2024, with Dubai and Abu Dhabi airports posting an increase of 8% and 33.8% respectively.
UAE’s Masdar bought the green energy firm Saeta Yield from Canada’s Brookfield in a USD 1.4bn deal. With this deal, Masdar acquired 745 megawatts of mostly wind assets and 1.6 gigawatts of projects under development in both Spain and Portugal.
MENA News:
Bahrain is on track to achieving fiscal balance this year, reported Gulf Daily News, citing a review by the Parliament’s financial and economic affairs committee. Expected revenues are estimated to touch BHD 3.2bn this year (vs an expected BHD 3.1bn) while spending will likely be around BHD 4bn (vs expected BHD 3.7bn). The deficit of around BHD 773.9mn will be covered via borrowing.
ESCWA issued a brief warning that Lebanon is on the Brink and warning of Catastrophic Collapse. “This conflict has devastated not only infrastructure but also the very fabric of society,” said Rola Dashti, ESCWA Executive Secretary. “The destruction of homes, schools, and health-care facilities, coupled with widespread displacement, is eroding human capital and tearing apart social cohesion. More: https://www.unescwa.org/news/lebanon-brink-un-warns-catastrophic-collapse
Qatar became the first Gulf country admitted into the US Visa Waiver Program. This will allow Qatari citizens, starting no later than 1st of December, to travel for tourism or business and stay up to 90 days without a visa.
Pakistan received “significant financing assurances” from Saudi Arabia, the UAE and China to meet the external financing gap (on top of a debt rollover), following this the IMF approved a new USD 7bn 37-month loan agreement.
WIPO’s Global Innovation Index 2024 ranks UAE 32nd globally and first in the Western Asia and North Africa region. Only UAE, Iran and Oman improved their position since 2013: the latter two are ranked 64th and 74th respectively.
Retail sector in the GCC is forecast to grow at an annual rate of 4.6% between 2023 and 2028, clocking in at USD 386.9bn by 2028, according to Alpen Capital. Saudi Arabia and UAE are the main drivers of this growth, set to expand by 5.1% and 5.4% respectively (to USD 139.1bn and USD 161.4bn).
OPEC revised upwards the world oil demand forecast for the medium and long-term (118.9mn bpd by 2045 and 120.1mn by 2050), citing growth in developing nations (led by India, Africa and the Middle East). Expecting no peak oil demand, the World Oil Outlook report also expects a slower move to EVs while calling for USD 17.4trn investment in the oil industry by 2050.
The FT reported that Saudi Arabia is committed to raising oil output in December even if it leads to a long period of low oil prices (in a bid to boost market share). Currently OPEC+ market share has slipped to less than half of world supply with Saudi output lower than 10% of the total supply (versus US at around 20%).
According to the Ministry of Tourism, Saudi Arabia welcomed 17.5mn international visitors in January-July this year, up 10% YoY and 73% higher compared to pre-pandemic 2019. Around 2mn tourists entered the country for entertainment and leisure experiences, up 25% YoY and 656% compared to 2019.
Kafalah, Saudi Arabia’s Small and Medium Enterprises Loan Guarantee Program, has supported more than 23k SMEs, facilitating over SAR 100bn in financing guarantees since its launch, according to the CEO. Between 2019 to 2023, Kafalah saw a 166% surge in guarantees issued, alongside a reduction in processing time (36 hours from 48 working days).
According to the CEO of Diriyah, one of the Saudi giga projects, deals worth nearly USD 1bn have been agreed with European firms. He also stated that talks were underway with other foreign investors related to real estate developments and equity stakes in hotels. The PIF has invested around SAR 20bn in the project in 2023-24.
Global News:
Equities markets saw US register a weekly gain as the Dow, Stoxx600 and MSCI’s global stock index touch a record high; China’s CSI300 posted a 15.7% gain, the highest weekly uptick since November 2008 (following the stimulus measure announcements and rollout). Japan’s election of Ishiba (a fiscal hawk who indicated that the BoJ were “on the right policy track” with rate hikes so far) as the PM saw the Nikkei decline and the yen rally. Regional markets were affected by weak oil prices and regional geopolitical issues after the proposal for a ceasefire (following the ramp up of attacks in Lebanon) was rejected. The dollar index weakened to the lowest since July 2023 while JPY strengthened after the new leadership was announced. Oil prices declined compared to a week ago while gold price ticked up by 1.4%.
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SOURCE:
Nasser Saidi & Associates