Infrastructure Engineers measure up Dubai’s $8bn flood defence plan After April’s once-in-a-century storm that put swaths of Dubai under water, Sheikh Mohammed bin Rashid Al Maktoum has cleared the way for a AED30 billion ($8 billion) stormwater management upgrade. The ambitious expansion of the emirate’s drainage system will provide a sevenfold increase in its capacity to handle rainwater, to more than 20 million cubic […] June 27, 2024
Artificial Intelligence US scores geopolitical win with Abu Dhabi-Microsoft tie-up Microsoft’s $1.5 billion investment in Abu Dhabi’s artificial intelligence company has received a significant vote of confidence from US authorities. Tarun Chhabra, a senior White House adviser on technology, said on Monday that the US government has raised no objections to the Silicon Valley giant’s partnership because G42 had severed ties with the Chinese tech […] June 26, 2024
Industry Silver is riding high but the market remains volatile With a gain in its spot price of nearly one-third since the start of the year, silver is now 2024’s best-performing precious metal. It is a major industrial material with an important role in the green energy transition. Yet, while these factors are combining to give silver a moment, analysts are quick to warn of […] June 25, 2024
Construction Construction is ‘cheaper in Dubai than Riyadh or Doha’ Dubai is only the third most expensive construction market in the Middle East after Riyadh and Doha, research has found. A real estate boom led by the leisure, hospitality and sports sectors, combined with a “distinct shortage of skilled labour”, have driven up construction costs in the Saudi capital to an average of $2,593 per […] June 21, 2024
Economy Wealthy migrants to UAE boost luxuries but stir inflation The UAE is likely to attract a new surge of ultra-rich migrants, lured by low tax rates, high-privacy settings and a luxurious lifestyle, at a time of global geopolitical upheaval and heightened anti-money laundering measures in developed countries. But, while the wave of wealth is likely to stimulate specialised sectors of the economy, the arrivals […] June 20, 2024
Markets Rise in startup exits a sign of UAE’s ‘market maturity’ Startup exits – when a new company sells its ownership or stock, for profit or at a loss – are rising sharply in the Gulf, which observers say is proof of a maturing ecosystem. Across the Middle East and North Africa, 43 startup exits were recorded in 2023, up from 15 in 2015, according to […] June 20, 2024
Retail Premium Qatar malls thrive despite online competition Large high-end malls in Qatar are winning the favour of consumers who still choose to shop in person amid intensifying competition from the internet. However, other shopping venues are suffering from reduced footfall and growing vacancy rates. The flagship Doha Festival City announced last month that it is fully leased after clinching its 500th retail […] June 19, 2024
Construction 3D printing fails to live up to hype for Mena contractors The Mena construction industry has been slow to adopt new technologies such as modular building, blockchain and 3D printing. The latter might be used more as a specialised tool with particular “sweet spots” than in a mass deployment, according to industry experts who spoke at the Construction Technology ConFex event in Dubai earlier this month. […] June 18, 2024
Economy Egypt shows signs of recovery after landmark IMF deal Last Friday marked 100 days since Egypt, the International Monetary Fund’s (IMF) second-biggest debtor after Argentina, agreed its latest loan. Eased by a $35 billion development deal with the UAE and increased international concern for Egypt’s economic stability following the outbreak of the war in Gaza, the deal drew a line under more than two […] June 17, 2024
Infrastructure The future of DXB: airport could be turned into a city The $35 billion plan to turn Al Maktoum International into the busiest airport in the world has everyone talking about the remaking of Dubai South. Perhaps a bigger challenge is the redevelopment of the city’s main airport – Dubai International, or DXB. DXB is near some of the city’s most densely populated neighbourhoods and the […] June 16, 2024
Video length: 07:15 Tourism Hajj pilgrims feel the pinch as costs rise The costs of Hajj are getting ever higher for pilgrims coming from around the world to perform the annual rites, which are a duty for every able-bodied Muslim to perform once in a lifetime. Even pilgrims coming from within Saudi Arabia, for whom the costs are cheaper, are paying around SAR23,500 ($6,266) for up to […] June 14, 2024
Finance Better terms and returns swell private credit demand Private credit in the Gulf is attracting greater interest from borrowers and investors, fund managers say. For borrowers, high interest rates have depressed mid-sized, private company valuations and make selling equity to raise money less alluring. And for investors, private credit offers more regular returns than the likes of private equity. Private credit is non-bank […] June 14, 2024
Markets Hopes high for Egypt’s shariah-compliant index The Egyptian stock exchange has announced the launch of a long-awaited shariah-compliant index, a move observers say is likely to attract new investors and boost the North African country’s latent Islamic banking sector. Gulf investors are said to be particularly interested. The chairman of the Egyptian Exchange (EGX), Ahmed el Sheikh, announced that the new […] June 13, 2024
Renewable Energy Saudi summons energy to unearth geothermal potential A Saudi Arabian university has completed drilling a research well as the kingdom steps up efforts to harness its geothermal potential – which industry experts estimate could free up to 1 million barrels of oil a day for export. The 400m deep observation well was drilled by a team from King Abdullah University of Science […] June 13, 2024
Video length: 07:12 Leisure & Hospitality Hotel franchising model takes off in the Gulf Global hospitality brands are aggressively expanding across the Gulf, stepping up competition and giving disgruntled owners unprecedented freedom to choose how and by whom their hotels should be run. Some hotel owners are opting for franchising agreements and third-party management arrangements. “Operators have become more flexible when offering their brands under a franchise than they […] June 12, 2024
Finance Egypt confronts sell-off of more state assets More sales of Egyptian state assets from petrol stations to wind farms are likely to be announced in the financial year to June 2025, according to people familiar with the negotiations. A deal with the UAE worth $35 billion to develop a resort at Ras El Hekma on the Mediterranean has eased the pressure on […] June 11, 2024
Health Wearable tech shoppers track price as well as health Gulf consumers who are interested in wearable tech – smart watches, rings, glasses and implants – are opting for mid-range gadgets rather than premium devices, industry experts have told AGBI. Dubai retailer Jumbo Electronics reported 50 percent year-on-year growth in the AED600-1,000 (about $163-$272) price segment in the first four months of 2024. The AED1,000-1,500 […] June 10, 2024
Finance Agriculture startups failing to cultivate VC interest Agriculture technology founders in the Gulf are having to resort to alternative sources of funding, as interest from venture capital entities dries up. The region is following a global trend. Startups in so-called “agtech” cumulatively raised $1.2 billion across 161 deals in the first quarter of this year, down almost 26 percent and 20 percent […] June 10, 2024
Finance UAE car insurers boycott Teslas over high repair costs Insurance companies are refusing to offer fully comprehensive insurance cover for Tesla electric vehicles in the UAE because of the huge cost of repairs, a lack of repair expertise and an increased number of accidents. “The repair invoice for Tesla is almost three times as much as an average car,” said Issam Mouslimani, goodwill ambassador […] June 7, 2024
Construction Gulf construction sector rethinks contract terms as costs rise The Gulf’s construction industry is rethinking the developer-contractor relationship, and procurement and supply chain management, to stay ahead of rising prices of materials and transport bottlenecks as a result of geopolitical volatility. “We are in a part of the world that is very conducive to finding alternatives,” Imad Itani, head of innovation at the Dubai […] June 7, 2024
Oil & Gas Gulf oil producers anticipate peak in Chinese demand In any discussion of the outlook for oil prices, Chinese demand always features largely. For the Gulf this is particularly crucial. China is the main off-taker of Saudi, Iraqi, Omani, UAE and Kuwaiti crudes. At the weekend, Opec+ again committed to rolling over oil supply cuts to support crude prices but analysts say its efforts […] June 5, 2024
Video length: 07:12 Leisure & Hospitality UAE hotel rebrandings a sign of discontent in the sector Growing discontent among UAE hotel owners about the treatment they are receiving from operators has resulted in a wave of hospitality rebrandings. More than a dozen major hotels across the UAE have been reflagged in the past year. Emirati, Spanish and Chinese hotel brands have also disclosed plans to pursue the same strategy as part […] June 5, 2024
