Finance More GCC insurance mergers likely after flooding impact Consolidation in the GCC’s insurance sector – already underway because of rising competition and stricter regulations on solvency capital requirements – could be accelerated by the impact of the flooding in the region last week. Ratings agency S&P Global said this week that many insurance companies – mainly in the UAE, Kuwait and Saudi Arabia […] April 25, 2024
Logistics Beirut bids to reclaim its regional shipping crown The ruined grain silos that absorbed much of the Beirut Port blast still stand as a monument to Lebanon’s misery during the past four years. Much of the debris, scattered across the old port and lying on the seabed, remains unmoved from where it fell on 4 August 2020, when 2,750 tonnes of ammonium nitrate […] April 24, 2024
Finance UAE insurers face ‘very severe’ impact from floods UAE insurers have been “badly hit” following April’s freak rains, a veteran industry executive warned on Tuesday, but the scale of companies’ losses from the floods will depend on their own reinsurance cover. The UAE experienced its heaviest rains in 75 years last week. The downpour turned main roads, particularly in Dubai, into waterways, leaving […] April 24, 2024
Tech World Cup’s brimming prize pot to revive Saudi esports Saudi Arabia will offer a record-breaking $60 million prize pool for its upcoming Esports World Cup, at a time when the kingdom is facing challenges attracting foreign investments to the sector. The amount of prize money for this summer’s event breaks the previous record of $45 million set by esports festival Gamer8 in 2023. Saudi […] April 19, 2024
Giga-projects Saudi Arabia strives to counter giga-project doubts As Saudi Arabia ramps up its global tour to attract more giga-project investment, doubts have begun to set in over costs and whether they will meet the imminent 2030 deadline. The kingdom’s officials put on a big show at an international real estate event in Cannes in March and this week Neom kicked off the […] April 18, 2024
Banking & Finance Iraq shapes up as a destination for UAE investors Emirati investors may be increasingly tempted to look at Iraq after additional safeguards are introduced under a new bilateral investment treaty, observers believe. The treaty between Iraq and the UAE was signed in October 2021 and ratified by both states last year. All that is left now is for the instruments of ratification to be […] April 18, 2024
Infrastructure Gulf’s record floods highlight ‘balance between risk and investment’ Historic rainfall this week in the Gulf, particularly in the UAE, has raised serious questions about investment in infrastructure to prevent the widespread flooding that brought much of the region to a standstill. On Tuesday the UAE was hit by its heaviest rains in 75 years. The downpour turned main roads into waterways, particularly in […] April 17, 2024
Real Estate Rising prices risk making Dubai homes ‘unattainable’ Escalating home prices in Dubai’s affordable communities are making it even more difficult for residents to get on the property ladder, real estate experts have warned. February data from property consultancy ValuStrat shows the highest annual growth in apartment values was recorded in the emirate’s more budget-friendly neighbourhoods. Prices in Discovery Gardens and The Greens […] April 17, 2024
Tech Space trash offers Saudi Arabia a new revenue source Saudi Arabia is targeting lucrative and environmentally critical opportunities in the rubbish removal sector – in outer space. More than 27,000 man-made objects larger than 10 centimetres, such as defunct satellites and spent rocket stages, orbit Earth, according to Nasa. This space debris puts at stake billions of dollars of assets such as spacecraft and […] April 16, 2024
Economy The banking blame game stifling Lebanon’s IMF deal Lebanon’s proposed International Monetary Fund deal, agreed two years ago and designed to put the country on the road to recovery, seems no closer to realisation. One of the key stumbling points is reform of the banking sector. The combined liabilities of the country’s banks amount to more than three times the size of Lebanon’s […] April 15, 2024
Tech The Mena metaverse: moving beyond the hype Two years ago, the concept of metaverse lands transformed from an interesting subculture into a thriving multi-billion-dollar market, capturing the interest of major investors both regionally in the Middle East and globally. Metaverse lands, made of pixels and digital images, refer to buildings and plots within a virtual environment, offering spaces for gaming, socialising, business […] April 12, 2024
Renewable Energy Lithium’s highs and lows – and what they mean for the Gulf For one of the world’s most critical minerals, the past two years have been the best of times and the worst of times. First, lithium prices shot skywards, hitting around $80,000 per metric tonne in 2022 amid fears that global supply would not meet demand. Then, in just a year, the soft, silvery-white metal lost […] April 12, 2024
Economy Military’s role in economy muddies Egypt’s debt plan The military’s role in the Egyptian economy makes it unlikely the country will meet International Monetary Fund targets to increase tax revenue as a proportion of GDP, which could spell trouble for the hugely indebted nation. Egypt’s public external debt – money borrowed in foreign currencies – was $165 billion in September 2023, having more […] April 11, 2024
Food & Drink Dubai restaurant scene ‘at risk of hitting saturation point’ Food and beverage operators in Dubai have warned that the emirate’s restaurant market is increasingly saturated as one company calls time on a prominent location. Gates Hospitality, which operates venues across the Middle East, announced this week that two of its restaurants in Souk Madinat Jumeirah, Folly and Publique, would close at the end of […] April 9, 2024
Retail The pros and pitfalls of pop-up shops Pop-up shops are appearing in more shopping malls, hotels and even beach clubs. Whether they are for new brands looking to build a name or more established companies opting for a more experiential way to market and test their products, pop-ups are largely temporary affairs designed to create a buzz. They are also considered a […] April 9, 2024
Economy US rate cuts to ease Turkey’s debt and benefit exports For Turkey, long-anticipated US interest rate cuts could be more significant in terms of stimulating growth in its major export markets than easing the costs of servicing its spiralling foreign currency debt. Turks have faced a deepening cost of living crisis as veteran president Recep Tayyip Erdoğan’s unorthodox economic policies exacerbated a collapse in the […] April 9, 2024
Economy Lebanon needs more than US rate cuts to turn its economy around Probable US interest rate cuts could help Jordan and Morocco attract additional foreign investments as well as easing their already manageable loan repayment commitments, experts predict, but Lebanon’s financial problems remain so acute that a reduced debt burden will make little difference. US 10-year treasury yields – the most important determinant of government borrowing conditions […] April 9, 2024
Renewable Energy Middle East renewable capacity doubles but the region is lagging Renewable energy capacity in the Middle East has more than doubled in the past decade, with Iran and the UAE leading the way – but the region remains a bit-part player globally. New figures released by the International Renewable Energy Agency (Irena) show that regional capacity rose from just under 16 gigawatts to more than […] April 8, 2024
Real Estate Dubai developers tempt off-plan buyers with 1% payment Dubai developers are offering 1 percent payment plans in an attempt to maintain interest in an increasingly crowded off-plan sales market and to delay an anticipated slowdown after years of record growth. Yet experts warn that this tactic carries significant risks, drawing parallels to the precedents set before the 2008 housing crash. Ziad Hinnawi, sales […] April 6, 2024
Economy Egypt will still feel the heat despite US rate cuts Likely US interest rate cuts will lower Egypt’s interest repayment costs on its vast public debts. But this will do little to ease pressure on the country to sell national assets in order to reduce its overall borrowings. Egypt’s public external debt – money borrowed in foreign currencies – was $110 billion in 2022, having […] April 5, 2024
Finance China and US vie for FDI supremacy in Gulf’s biggest economies China and the United States invested more than $23 billion in projects in the Gulf’s two biggest economies last year. The US more than doubled its “greenfield” foreign direct investment in the UAE to nearly $4 billion, while China’s commitment to Saudi Arabia rose 10-fold to almost $17 billion. Greenfield FDI involves a foreign entity […] April 5, 2024
Oil & Gas Iran’s gas ambitions under pressure Iran has trebled its natural gas production in 10 years, becoming the largest producer in the Middle East. But Qatar’s expansion of its liquefied natural gas (LNG) production in the world’s largest natural gas field, shared by the two nations, is likely to undermine Tehran’s output ambitions, analysts say. Iran holds the world’s second-largest gas […] April 1, 2024
