Gold Prices Surge to All-Time High…
Gold prices surging to an all-time high of $2,708 last week, as expectations of further rate cuts by the US Federal Reserve and uncertainties over the impending US election, boosted demand for bullion.
UAE News:
UAE signed a Comprehensive Economic Participation Agreement (CEPA) with Jordan, the first with an Arab nation. UAE is the fifth largest global trading partner of Jordan: non-oil bilateral trade stands at over 4.2bn in 2023, USD 2.7bn in H1 2024, and the CEPA is estimated to boost trade to over USD 8bn+ by 2032. Bilateral investments stand at USD 22.5bn, with UAE the largest international investor in Jordan. The CEPA follows various other agreements in place including the USD 2.3bn railway investment project and the Industrial Partnership for Sustainable Economic Growth.
The CEO of Dubai Chambers revealed that Turkish investments in Dubai stands close to USD 100mn between 2015 and 2023, while investments by Dubai-based companies is nearly USD 2bn in Türkiye during the period 2018 to H1 2024.
MENA News:
Selling 5G licenses to telecom operators will add USD 675mn in direct foreign investments to Egypt within weeks, disclosed the PM.
Egypt is planning to set up six new free zones in 2026, according to the CEO of the General Authority for Investment and Freezones. Two have already been licensed though not activated.
The trial of the Egypt-Saudi Arabia electricity interconnection project will be undertaken in April 2025, according to Asharq Business. The first phase, with a capacity of 1,500 megawatts, is expected to be fully operational by June.
Iraq’s oil production in September touched 3.94mn barrels per day (BPD), below the OPEC+ output quota of around 4mn BPD. The official stated that lower production was a result of lower exports, reduced domestic consumption and a decline in output from the Kurdistan Region.
Lebanon’s Eurobonds rose to a 2-year high, up 44% from a low base since late-September: the jump resulted in the bond maturing in 2025 to trade at 8.5 cents on the dollar (vs 70 cents when bonds are considered distressed).
Oman and Saudi Arabia inked a trade and economic partnership. Currently, bilateral trade with Saudi stands at SAR 36.8bn. Exports to Oman - at SAR 22.5bn.
Qatar launched initiatives to boost private sector participation and growth: this includes writing off some loans disbursed during the pandemic to Qatari firms and ability to access short-term funding to finance working capital.
GCC signed a contract to link the Gulf Electricity Market with Iraq: expected to begin operations in early 2025, the connection will provide Iraq with up to 3.94 terawatt-hours of electricity annually at competitive prices (lower than local production costs).
Funding to MENA’s startups fell by 13% YoY to USD 1.3bn in January-September 2024, while the deal count dropped 6% to 352, according to MAGNiTT data. The number of investors has ticked up (34% YoY) given a surge in international investors (+69%). Fintech remained the top sector in MENA, raising USD 480mn across 72 deals.
Saudi Arabia plans to appoint private operators to manage 4 airports in the country, according to the Investment Minister. He stated that the updated investment law is attracting investments in logistics and transport sectors. Separately, the Minister of Transport and Logistic Services revealed that over SAR 1trn will be invested in the Saudi logistics sector, allowing it to meet its ambition to become a global hub by 2030; SAR 200bn has already been deployed.
Saudi Arabia is home to 2,000 of the 5,000 green building projects across the Arab world, disclosed a senior government official, underscoring the shift toward energy-efficient structures and the increased use of green building materials.
Twelve foreign airlines have started direct flights to Saudi Arabia this year, versus a global average of 2-4 foreign carriers annually, disclosed the CEO of Saudi’s Air Connectivity Programme. About 60 new direct routes have been launched since 2021 and the plan is to establish more than 250 direct routes by 2030.
Global News:
Equities markets in the US closed higher (S&P 500 at a record high), as did the MSCI all world index; other markets including in Europe and Asia did not fare as well after China’s much-awaited fiscal policy stimulus plans fell short on details, and failed to include a major spending package. Regional markets were mostly up, though many ended lower on Thursday amid rising geopolitical tensions. The CNY strengthened ahead of the stimulus news conference (held on Saturday). Oil prices closed higher for the second week in a row on supply concerns (Hurricane Milton in the US and potential disruptions in the Middle East), up by 1.0%+; gold price also edged higher.
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SOURCE:
Nasser Saidi & Associates