Oil & Gas National oil companies venture into trading business Traditionally conservative national oil companies (NOCs) in the Middle East are developing their trading businesses in pursuit of new sources of income and to eat into the bumper profits of commodities houses. OQ of Oman, Saudi Aramco, UAE’s Adnoc and QatarEnergies have successfully developed their refined products and trading over the last decade to catch […] October 9, 2024
Leisure & Hospitality Infrastructure needed to support Egypt’s tourism ambitions Regional and international hotel operators are keen to expand in Egypt, but the country needs to improve infrastructure such as airports to support its tourism ambitions, industry sources have said. Egypt aims to emulate the high-end hospitality and entertainment development that the UAE and other Gulf countries have pioneered, at the same time bringing in […] October 9, 2024
Finance Tunisia’s tough decisions: to reform or face debt default As Tunisia’s president Kais Saied celebrates his re-election, the former lawyer must decide whether to implement unpopular reforms to receive a foreign bailout or risk the North African country making its first ever debt default. Tunisia was close to reneging on some of its borrowings late last year and again earlier this year, but averted […] October 9, 2024
Construction Middle East crisis further hinders late project delivery The escalating Middle East conflict involving Israel, Lebanon and Iran is further hindering already stretched construction timelines in the Gulf. Safe passage through the Strait of Hormuz is threatened, with concerns that Iran will close the waterway. This route is critical to GCC oil and gas exports. Building projects in the Middle East suffered some […] October 9, 2024
Energy Costs versus profits in the energy transition debate The Abu Dhabi-based International Renewable Energy Agency (Irena) last month reported that, once again, if you want cheap electricity, then renewable energy is by far your best bet. After “spectacular” declines in cost in recent years, according to Irena’s 2023 Costs Report, the global weighted average cost of photovoltaic (PV) solar – the most widespread […] October 8, 2024
Finance Insurance payouts surge in UAE after record rainfall The UAE’s record-breaking rainfall contributed to soaring levels of insurance payouts in the first half of this year. The increase is also attributed to inflation, the Gulf state’s growing population and expanded insurance coverage across various sectors. The Central Bank of the UAE said in its quarterly economic review that the gross paid claims of […] October 8, 2024
Giga-projects World Cup and Expo wins divert funding to Riyadh Saudi Arabia’s giga-projects have slowed down because of financing constraints – and now the government’s unexpected success in bidding for global events is redirecting even more resources towards Riyadh. Even prestigious developments such as Neom, the $500 billion futuristic city in north-west Saudi Arabia, are taking second place. The priority is turning the capital into […] October 8, 2024
Oil & Gas Fears for Strait of Hormuz oil gateway in Iran-Israel face-off The prospect of a sustained Iran-Israel conflict is raising concerns that Iran could respond by closing the Strait of Hormuz, the waterway critical to GCC oil and gas exports. Last month about 15 million barrels per day (bpd) of crude passed through the Strait of Hormuz, 36 percent of global seaborne oil exports, according to […] October 8, 2024
Banking and Finance Omani banking sector ripe for further mergers Oman’s banking sector has more than doubled in size since 2013 but may lack the scale to meet state financing needs. Lenders are already stretched in terms of their loan-to-deposit ratios, and further sector consolidation is probably needed along with borrowing on international bond markets. Bank Muscat is Oman’s largest with assets of OMR13.7 billion […] October 7, 2024
Tourism Interest builds in mid-range Saudi hotels after luxury focus Saudi Arabia’s emphasis on luxury hotels has provided openings for investors in the mid-range segment, industry specialists said. “Look at the size of the country and what you can do. I work in all 13 regions and you’d be shocked at the untouched areas. It’s not Dubai where it’s all glitzy. They have a culture,” […] October 7, 2024
Oil & Gas Iran’s energy installations may be targeted in Israeli strikes Brent neared $79 a barrel on Friday, surging over 10 percent in a week, as markets and the wider world waited for a response to Iran’s attacking Israel with nearly 200 ballistic missiles on Tuesday. Israeli prime minister Benjamin Netanyahu may order an attack on one of Iran’s major oil centres or less significant installations […] October 4, 2024
Manufacturing Gulf spots opening in China’s polysilicon boom-bust cycle Solar power capacity across the Middle East region trebled from 3 gigawatts to 9GW between 2020 and 2023, according to the trade association Energy Industries Council. In the Gulf alone, a further 40GW of photovoltaic (PV) solar power are scheduled for installation by 2030, the International Renewable Energy Agency (Irena), an intergovernmental organisation, says. For […] October 4, 2024
Banking and Finance Omani banks look to state spending to boost credit growth Lower interest rates should increase borrowing demand in Oman although the sultanate’s banks are waiting for a meaningful expansion in government infrastructure spending for credit growth to accelerate. Bank Muscat is Oman’s largest bank, reporting a 2023 net annual profit that was greater than those of the next four commercial banks combined, S&P Global data […] October 4, 2024
Tourism Gulf hospitality industry shrugs off war concerns Middle East hospitality veterans downplayed concerns over wider regional tensions this week, saying the industry has survived crises before and is poised to do so again. Government officials and corporate executives spoke during the Future Hospitality Summit, which is taking place in Dubai this week, just as military action intensified in Israel, Lebanon and Iran, […] October 3, 2024
Real Estate Off-plan luxury projects drive real estate risk in Dubai The rapid growth in off-plan development, particularly luxury properties, is injecting vulnerability in Dubai’s otherwise solid real estate market. Developers launched 391 projects in Dubai between January and mid-September, a 43 percent year-on-year increase. Many of the apartment towers in the pipeline are designed as high-end, and often branded, residences. “I feel there’s an oversupply […] October 2, 2024
Oil & Gas North Field expansion to power Qatar’s economy Qatar’s economy is likely to record only modest growth this year, but analysts predict that revenues generated from a North Field gas expansion will make it among the fastest-growing globally in two years’ time. Gross domestic product is forecast to surge to nearly 13 percent in 2026, after sluggish growth of only 1.5 percent this […] October 1, 2024
Video length: 04:53 Retail Rise in retail M&A predicted as Gulf stores struggle An increase in mergers and acquisitions in the GCC’s retail sector has been predicted for this year, as operators try to cope with an increasingly uncertain economic environment. Six retail M&A deals have taken place since the beginning of 2023, all involving intra-regional players. Thirteen retail M&A deals were concluded in 2022, of which five […] September 30, 2024
Finance Maldives nears first sovereign default on Islamic bonds The possibility of the first ever sovereign sukuk default by the Maldives would have negative repercussions for new sukuk issuance and the broader sharia-compliant fixed income market, industry experts have warned. Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by many Muslims as they pay […] September 30, 2024
Real Estate Lack of plots gives Palm Jumeirah added air of exclusivity Palm Jumeirah, Dubai’s world-famous man-made island, is running out of undeveloped land. Developer Nakheel’s announcement earlier this week that it will pay nearly $500 million to Alec Engineering & Contracting to build the new 75-storey Como residential tower on Palm Jumeirah is bound to be one of the last of its kind. Since it will […] September 29, 2024
Mining Ma’aden-Alba merger ‘a potential game changer’ The proposed merger between the Saudi Arabian mining company Ma’aden and Bahrain’s aluminium smelter Alba looks likely to shake up the global aluminium industry, with the new company challenging for sixth place in the world rankings. “It’s almost a game-changing event, particularly in the GCC region,” says Andy Farida, a senior analyst at Fastmarkets, a […] September 27, 2024
Retail Save now, buy later: the new shopping model cutting debt A new “save up before you buy” online shopping model is emerging in the UAE, offering an alternative to the debt-driven “buy now, pay later” approach that has surged in popularity across the Gulf. “Save now, buy later” (SNBL) platforms are betting on a shift towards financial responsibility, especially as concerns over household debt and […] September 27, 2024
Renewable Energy Egypt looks to Gulf investors to end power blackouts Egypt’s energy blackouts have created new opportunities for Gulf investors, as the cash-strapped Cairo government tries to end the crisis and plug the gap in its electricity supply before next summer. Prime minister Mostafa Madbouly announced on September 19 that there would be no more power cuts over the coming period, potentially marking an end […] September 27, 2024
