UAE Sees $34 Billion Crypto Surge...

UAE News:

UAE sees $34bn crypto surge as Middle East becomes digital asset hub; experts forecast market. The UAE saw crypto inflows of $34bn last year amid rising investment demand, says blockchain specialist Mining Grid.

The EU officially removed the UAE from its AML “grey list”, recognising its recent measures to restrict illicit financial flows, including the establishment of an Executive Office for Anti-Money Laundering and Counter Terrorism Financing, imposing AML/CFT fines and responding to international enforcement actions. This change is expected to lower compliance costs and reduce due diligence friction while also boosting investor confidence in the UAE’s governance quality.

DP World signed a 30-year concession agreement with Syria’s General Authority for Land and Sea Ports to develop and operate the Port of Tartus. As part of the agreement, DP World will invest USD 800mn throughout the concession to upgrade the port’s infrastructure and position it as a critical regional trade hub connecting Southern Europe and MENA.

The UAE targets an oil production capacity of 5mn barrels per day (bpd) by 2027, with an option to scale it up to 6mn bpd if markets require so, according to the energy minister. This latter option would cover just under 6% of global demand and reinforces the UAE’s role as a major oil and liquids producer.

Membership in the Abu Dhabi Chamber of Commerce and Industry increased by 4.9% to 157,207 companies during the period from September 2024 to June 2025, reflecting strong business confidence.

Dubai’s state entities are exploring digital payment solutions as part of a broader cashless strategy. Emirates airline signed an MoU with Crypto.com to study the potential of including cryptocurrency as a payment method by next year. Dubai Duty Free will also explore such payments for its in-store and online purchases. This marks an important shift toward enabling stable coin transactions in regular payment operations.

UAE’s G42, in partnership with Microsoft and local partners (FPT, VinaCapital, and Viet Thai Group), proposed the development of a USD 2bn hyperscale data centre in Ho Chi Minh City aimed at driving AI and cloud capabilities regionally. No timeframe was given for its development, but the project could attract FDI, lead to job creation, and skill development.

MENA News:

Bahrain attracted USD 250mn+ in British investments across multiple sectors such as Financial Services, ICT, Education, and Tourism over the period 2022–2024, according to the Economic Development Board.

Egypt’s Central Bank held interest rates steady, retaining both the 24% overnight deposit, 24.5% discount and 25% lending rates, after two consecutive cuts. With inflation falling and growth holding steady (close to 4.8%), policy moves will be predicated on the impact of recent VAT and subsidy reforms amidst external risks (such as currency volatility).

Egypt and China signed three MoUs focused on strengthening financial linkages, promoting the use of the CNY and payment systems. Especially important in the context of greater geopolitical fragmentation and increased weaponisation of the dollar, discussions centred around a local currency swap agreement, settling payments in local currencies, linking payment systems and issuance of Panda bonds.

Tourism revenues in Oman touched OMR 2.12bn in 2024, reflecting a CAGR of 3.2%. The sector’s contribution to GDP rose to OMR 2.7bn in 2024 (vs OMR 2.3bn in 2018). The Minister of Heritage and Tourism also highlighted the strong local and regional demand, as well as the appeal from European tourists, as key drivers of growth.

The World Bank forecasts Syria’s GDP to grow modestly by 1% in 2025, with the easing of sanctions providing “upside potential, and following a contraction of 1.5% last year. GDP had cumulatively contracted by more than 50% since the conflict started in 2010, and the gross national income, at just USD 830 last year, is lower than the threshold for low-income nations.

Bahrain is identified as having a 48% cost advantage in EY’s “Cost of Doing Business in the GCC” financial services sector report. Annual labour costs for a financial services tech hub in Bahrain is up to 24% more competitive, businesses can save 85% on annual business & licensing fees and get 60% better value for office space rental.

M&A deals in the MENA region surged by 149% YoY to USD 115.5bn in H1 2025, with equity and equity-related issuance totalling USD 7.6bn (-57% yoy) and bond issuance rising by 17% YoY to USD 86.8bn (the highest H1 reading since 1980). Investment banking fees in the MENA fell by 2% YoY to USD 773.7mn in H1 2025, the third highest H1 total since 2000, according to the LSEG Deals Intelligence report. Debt capital markets’ underwriting fees jumped by 20% YoY to an all-time high of USD 278.9mn in H1 2025, hitting an all-time high while equity capital markets were most impacted (underwriting fees fell sharply by 18% to a two-year low of USD 169.6mn).

Telco operators in Oman and the UAE began operating a submarine fibre optic cable connecting the two countries – a backup for the land and satellite-based channels.

Riyadh’s KAFD will announce a “huge expansion” this year – this could double the area (from the current 1.6 sq km). With multiple development projects underway in the district, the KAFD aims to attract 40k visitors a day by the end of 2025.

GCC residents can now directly invest in the Saudi stock market, promoting market openness, and removing prior restrictions that were limited to investments in the parallel market, debt and the derivatives market. This was part of a wider set of regulatory changes from the CMA, including stronger governance measures (safeguards for fund manager transitions), greater flexibility for REITs listed on the parallel market, and allowing investment fund units to be distributed through licensed digital platforms and SCB-approved fintech firms, among others.

Saudi Arabia’s updated property law will allow foreign nationals to buy property in the country starting January 2026 in specific areas (expected to be around major urban centres). Related regulations and provisions (including property rights) are yet to be disclosed.

Saudi Aid Platform revealed that total external aid disbursements by Saudi Arabia totalled SAR 528.4bn (USD 140.9bn), with top beneficiaries including Egypt (USD 32.49bn), Yemen (USD 27.69bn), and Pakistan (USD 13.19bn). These allocations reinforce Saudi Arabia’s humanitarian assistance and strategic geopolitical positioning.

Global News:

US equity markets closed the week a tad lower after hitting record highs on Thursday despite letters with new tariff rates being sent to 14 trade partners; as of now, the new tariff rates are to be imposed from August 1st onwards, unless there is a reprieve or “deal” announced. Stoxx600 and FTSE gained, as did major Asian markets. The region’s equity markets posted gains, brushing aside news of tariff hikes thanks to gains in the oil price and the IEA’s report that global oil markets may be tighter than previously indicated. With the trade tariff “war” resuming, USD rose vis-à-vis its peers: USD gained nearly 2.0% versus JPY while the euro slipped by 0.8% (on expectations of a letter with new tariff rates). Oil prices rose, with Brent and WTI up by 3% and 2.2% from a week ago. Metal prices climbed: gold (with its safe-haven status) saw prices edge up by 0.6%; silver price reached its highest in over 13 years and copper futures hit an all-time high, riding on the announced 50% tariff on copper.

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SOURCE:
Nasser Saidi & Associates

Arabian Business