Dubai Tops Global FDI Rankings with $11bn Inflows…
Dubai has underlined its global leadership in foreign direct investment (FDI), ranking number one worldwide for Greenfield projects for the eighth consecutive reporting period since H2 2021, according to data from the Financial Times Ltd’s FDI Markets database.
UAE News:
Dubai has underlined its global leadership in foreign direct investment (FDI), ranking number one worldwide for Greenfield projects for the eighth consecutive reporting period since H2 2021, according to data from the Financial Times Ltd’s FDI Markets database.
The UAE Cabinet approved a national policy for economic clusters, aiming to enhance sectoral integration and competitiveness. The clusters – in key sectors, including financial services, tourism and hospitality, space, communications and data analytics, and food – are expected to contribute more than AED 30bn annually to the UAE’s GDP and increase the value of foreign trade by AED 15bn over the next 7 years.
The UAE Central Bank projects overall economic growth of 4.9% in 2025, up from its previous estimate of 4.4%, thanks to expansions across both the hydrocarbon (5.8%) and non-hydrocarbon (4.5%) sectors. In 2026, the economy is expected to expand further, up 5.3% with non-oil sector growth at a resilient 4.8%.
UAE’s construction sector firms are jumping on the IPOs bandwagon: ALEC Holdings, a Dubai-based diversified engineering and construction firm wholly owned by the Investment Corporation of Dubai (ICD), announced plans to sell a 20% stake on the Dubai Financial Market (expected to raise about USD 400mn); post-IPO, ICD will retain an 80% stake in ALEC. Binghatti Holding is also reportedly exploring a potential listing on the Dubai Financial Market. The firm recently posted a 189% YoY increase in revenue and a net profit of AED 1.82bn in H1 2025. Bloomberg reported that another contractor, Arabian Construction Company, and online property platform Dubizzle are also planning to go public.
The Abu Dhabi Securities Exchange and Hong Kong Exchanges and Clearing Limited signed an agreement to promote dual listings, cross-border financing, and the development of ESG-related products. Furthermore, the two regulators (the UAE’s Securities and Commodities Authority and Hong Kong’s Securities and Futures Commission) have established a framework for mutual recognition of investment funds, thereby facilitating smoother cross-border investments.
Dubai ranked the fifth strongest international shipping centre globally, and top in the region, according to the 2024 International Shipping Centre Development Index report. The report highlights Dubai as the only Arab City in the top 20 and also the Jebel Ali Port’s handling of 15.5 million twenty-foot equivalent units (TEUs) last year, the highest since 2015.
MENA News:
GCC central banks lowered their key interest rates by about 25bps, in line with the Fed’s cut, given their peg to the US dollar. The rate cut will reduce borrowing costs for governments, firms and households, increase investment flows and further stimulate non‑oil investment while supporting non-oil diversification in sectors like tourism, real estate, and manufacturing.
FDI net inflows into Egypt in FY 2023-24 largely went into the construction and real estate sectors (USD 35.8bn or 76% of net FDI inflows), thanks to the Ras El Hekma deal. The number of construction companies grew by 20% YoY to 2856 in 2024, while the number of real estate developers has surged to over 15k currently (vs 2015: 270).
Egypt launched a new initiative, in coordination with the central bank, to restructure struggling and closed factories via a rescue fund. There are nearly 6,000 industrial units under financial problems, and the aim is to restore their capacity, boost exports, and preserve employment – a part of broader efforts to target export‑oriented industrial projects. Long‑term success of such a rescue effort will depend on whether such reforms embed continuous productivity improvements, and whether the government avoids creating moral hazard (i.e. rescuing inefficient firms indefinitely) instead of driving competitiveness and restructuring.
Egypt is planning to sell 14 land plots in the Red Sea province to private investors, with an aim to raise EGP 150bn (USD 3bn). These plots, meant for tourism, industrial, and service projects are also intended to create around 5,000 jobs. Such a move would result in a one-time boost to government revenues, support tourism and attract long-term foreign investment.
Oman formally requested to join Iraq’s USD 17bn “Development Road” project as a partner along with Turkey, Qatar and the UAE: this will build a roughly 1,200 km dual infrastructure corridor (road + railway) from Faw Port in southern Iraq to the northern border with Turkey, connecting onward into Europe; the project, scheduled to be completed in 2029, will also see the creation of industrial/economic zones along the route.
Kuwait’s government is inviting bids from local and international firms for the development of three new cities – aimed at easing the housing gap. The recently issued real estate development law allows for private investment in the sector.
Natural gas production in Oman inched up by 0.7% YoY to 32.88bn in January-July 2025, according to official NCSI data, while total oil production fell by 0.8% to 210.12mn barrels.
Syria’s finance minister disclosed that the country expects its state-owned entities to contribute over USD 2bn to the national budget within 2-3 years. Boards of these entities are to include independent experts than government officials, according to the minister. Separately, the Central Bank of Syria signed an MoU with Mastercard to introduce advanced electronic payment systems to the Syrian market.
Saudi Arabia updated its methodology for calculating inflation. As per the latest data, consumer price inflation inched up to 2.3% in August (July: 2.1%), the highest reading since July 2023. Prices increased in most categories, with the sharpest upticks being in restaurants & accommodation (3.0% from 1.9% in July) and transport (1.2% from 0.9%). Prices did ease in housing & utilities (5.8% vs 6.2%) and recreation, sports & culture prices edged up (2.7% from 3.5%). A slow easing in housing costs stems from rental costs slowing to 7.6% (from 8.2%).
Wholesale prices in Saudi Arabia moved up for the fifth consecutive month in August, to 2.13% in Aug (Jul: 2.10%), due to modest upticks in food products and other transportable goods; deflation continued in ores & minerals for the 25th month in a row (-0.84% from -0.85%). Average wholesale prices almost halved to 1.8% in January-August 2025 (vs January-August 2024: 3.4%), as prices of “other transportable goods” plunged (3.7% vs 8.4%), in addition to food products (0.1% vs 1.65%); costs of agriculture & fishery surged (4.3% from -0.1%).
French investment in Saudi Arabia has surged by 180% over five years to over EUR 16bn, disclosed the Saudi investment minister. This is in addition to the increase in bilateral non-oil trade that touched SAR 20bn in 2024.
Saudi Arabia’s hotel sector posted a 1.9% YoY increase in Average Daily Rate (to SAR 821.8) in H1 2025, according to JLL, while overall occupancy slipped to 62.3% and Revenue per Available Room ticked up modestly by 0.2% (to SAR 512.3). Growth is being supported by the revised Vision 2030’s tourism targets (150mn visitors annually by 2030), an increase in non-religious tourism (though religious tourism still dominates demand), alongside a strong hotel development pipeline.
Saudi Arabia’s Power Procurement Company (SPPC) has put out a request for qualifications for seven new renewable‑energy projects totalling 5,300 MW: includes five solar projects (a total of 3,500 MW) and two wind projects (around 1,200 MW). SPPC has launched over 43 GW of renewable projects and power purchase agreements with a capacity of over 38 GW.
Global News:
Among major markets, US equities gained last week, thanks to positive investor sentiment from the Fed cut, while European and UK markets ended slightly lower. Middle East markets were supported by the GCC central banks’ lowering rates in line with the Fed. The US dollar rebounded against most major currencies last week; the GBP posted a sharp decline on concerns about the upcoming budget and the government’s borrowing. Oil prices were slightly lower on fears of weak demand despite the Fed rate cut (that should generally lead to higher consumption) alongside signs of oversupply. Gold price hit a new record on Wednesday, posting a fifth week of weekly gains.
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SOURCE:
Nasser Saidi & Associates