Transport What the rise of robotaxi means for your car insurance As the Middle East continues to test autonomous vehicles, the big issue is the potential increase in multi-million-dollar lawsuits as a result of AV accidents, and the debate over who is liable for such payouts. Cruise, which is owned by General Motors and has been designated as the exclusive robotaxi service provider in Dubai until […] September 26, 2024
Markets Saudi Arabia leads in stock lending as short selling grows Saudi Arabia is the Middle East’s most active market for stock lending – an important part of the process of short selling – and demand from borrowers is likely to increase as more sophisticated investors start trading, new research suggests. In stock lending, an entity – usually a broker or financial institution – pays a […] September 25, 2024
Aviation Dnata is 65, but its globetrotting is just getting started Dnata began life 65 years ago as a small travel agency in Dubai. Today it is the airport services arm of Emirates Group, operating in over 30 countries and planning to expand to even more. This month, it signed ground handling contracts with Royal Jordanian Airlines at John F Kennedy airport in New York and […] September 24, 2024
Tourism Arab Disneyland and Da Vinci: Saudi Arabia’s two great hopes Saudi Arabia is spending billions on tourism projects at the heart of its grand plan to transform a once isolated kingdom into a global tourist destination. But a nagging question is haunting policymakers: will the world pay attention? Tourism numbers are rising, hitting 27.4 million in 2023, but half of those were religious visitors. The […] September 23, 2024
Giga-projects The huge ambitions of PIF come at vast expense The scale of the holdings is vast and the ambition is huge. Saudi Arabia’s Public Investment Fund was the world’s highest-spending state-owned investor in the first half of 2024, according to Global SWF, a consultancy. It is due to raise its annual spending to $70 billion in 2025, a year earlier than previously announced, according […] September 20, 2024
Agriculture Legal cannabis offers Morocco a route into Europe The King of Morocco, Mohammed Vl, has taken the unprecedented step of pardoning more than 4,800 illegal cannabis farmers in the north of his country. Mohammed El Guerrouj, the head of the National Agency for the Regulation of Cannabis-Related Activities (Anrac), said the decision was made to encourage farmers to grow cannabis legally and to […] September 20, 2024
Markets Oil IPO is latest step towards Oman’s emerging market status An Omani state oil company’s $2 billion initial public offering will boost the sultanate’s chances of eventually being reclassified as an emerging market by the world’s leading stock index providers. If achieved, Oman’s blue-chips will receive sizeable inflows from passive funds that track the MSCI and FTSE emerging market benchmarks, increasing bourse turnover and likely […] September 20, 2024
Markets ‘Bot traders’ defy Opec and determine the price of oil Oil has been trading at its lowest levels in a year, posing a severe challenge to Opec in its efforts to impose a floor on prices. But analysts say that speculative financial players are also driving price determination, alongside traders who study the fundamentals of supply and demand. Opec has voiced frustration at what it […] September 20, 2024
Tech Ankara’s twin tech challenge to woo foreign experts and keep its own Turkey wants to persuade foreign tech entrepreneurs and innovators to move to the country with a scheme providing a fast-tracked business permit and residency visa, as it seeks to position itself as a leading international technology hub. Ankara has already made a call to tech-savvy travellers through a programme launched in April offering an easy […] September 19, 2024
Economy Oman edging closer to investment grade rating Oman has been putting its fiscal house in order over the past three years and, in the eyes of many analysts, has realistic hopes of regaining its investment grade rating. But the sultanate has significantly upped spending on energy and social subsidies, while a drop in gas prices has lowered revenues in the seven months […] September 19, 2024
Real Estate Project stardust: why Dubai developers still want celeb tie-ins Lionel Messi, Rohit Sharma and Chris Hemsworth are just some of the famous faces who have promoted UAE real estate in recent years. Superstar sportsmen and Hollywood heroes do not come cheap, but are they really a good investment for developers or just an excuse for the CEO to get a selfie? Many industry observers […] September 18, 2024
Video length: 06:56 Banking and Finance Revolut tipped to ‘shake up’ UAE remittance market UK fintech Revolut is stepping up recruitment in Dubai as it prepares to muscle in on the UAE’s $44 billion remittances market. Last month, more than a dozen Revolut insiders gathered at a cafe in Dubai’s Al Quoz district, courting talent for its UAE operations. The company told AGBI last year that it was recruiting […] September 17, 2024
Oil & Gas Oil production in Libya returns, but full recovery is uncertain Oil production in politically divided Libya is slowly recovering, after a tumultuous August when fields across the country were shut down. But crude exports remain disrupted, and government revenues are still dampened, amid concerns over prolonged instability. Libyan factions failed last week to resolve crises over the central bank’s powers and oil revenues. Crude output […] September 17, 2024
Banking and Finance Saudi banks primed for leap in corporate lending Saudi Arabia’s banks are financially well equipped to meet an expected surge in corporate borrowing once US interest rates start to fall, experts have said. They are unlikely to face lending constraints despite the industry’s loan-to-deposit ratio again edging higher, they added. In June 2022 Saudi Arabia’s central bank (Sama) placed about SAR50 billion ($13 […] September 17, 2024
Economy Hard-pressed Turks must wait longer for inflation to drop Turkey’s main inflation rate may have fallen from the 75 percent-plus high seen earlier this year, but the latest forecasts suggest Turks will have to live with a rising cost of living for some time to come, maintaining pressure on consumers and producers alike. On September 5, the Turkish government released revised medium-term economic projections, […] September 16, 2024
Finance US rate cuts will help Gulf bonds but oil worries persist Imminent US interest rate cuts bode well for Gulf bonds and sukuk, although declining oil prices could lead to higher spreads on regional debt. Bonds are typically priced against 10-year US government treasuries and the difference between their yields is known as the spread. The yield on 10-year treasuries hit a 17-year high of nearly […] September 16, 2024
Real Estate Investors size up Gulf student housing after US success Gulf entities have invested billions of dollars in student housing in the United States over the past few years, and are now considering making the same play locally. Accommodation for university students has become a hot asset class amid demographic growth fueled by the millennial generation, which recently passed the baby boomers to become the […] September 16, 2024
Construction GCC stadium projects have multifaceted impact on real estate Entertainment and sports-focused construction across the Gulf is most likely to push property prices up despite bringing more traffic and noise, according to industry observers. A few of the region’s many projects include the 47,000-spectator Aramco stadium in Saudi Arabia’s Al Khobar, large amusement parks in Qatar and Kuwait, and the region’s inaugural ballpark on […] September 13, 2024
Food & Drink Champagne shipments to the Gulf slow but still flowing The growth in champagne shipments to the Gulf has slowed in recent years but the market is still one of the strongest in the world, bucking a global trend for declining sales. Around 3.5 million bottles of champagne were shipped to the Gulf states in 2023, an increase of about 40 percent, according to data […] September 13, 2024
Gaming Wynn’s update on RAK casino has analysts abuzz Wynn Resorts is to update investors next month on its plans for the UAE’s first casino, heightening analysts’ speculation about the company. The Las Vegas-based hospitality group is building a $4 billion, 1,500-room resort on Al Marjan Island in Ras Al Khaimah. The complex is expected to open in early 2027 and Wynn’s CEO Craig […] September 12, 2024
Markets Outlook for Gulf bourses is upbeat despite oil price jitters The Gulf’s stuttering stock markets are probably not indicating the start of a downturn, analysts have told AGBI, but are a good opportunity for investors to snap up cheaper shares. Dubai aside, the region’s bourses have been broadly lacklustre this year although heavyweight sectors such as banking and petrochemicals have reported a marked increase in […] September 11, 2024
Economy One year on, Atlas earthquake still highlights Morocco’s divide Last Sunday marked one year since a devastating earthquake hit Morocco, flattening entire villages in the Atlas Mountains and killing around three thousand people. Within a week of the disaster, the country’s deadliest earthquake in 63 years, King Mohammed VI pledged MAD120 billion ($11.6 billion) over five years for reconstruction of the area. That included […] September 9, 2024
