Economy Inflation raises old debate on currencies being pegged to dollar The Gulf’s currencies have been linked to the US dollar for decades: the Omani riyal since the 1970s, the Qatari riyal since mid-2001 and the Bahraini dinar and the UAE dirham officially since early 2002. The latter three have effectively been linked to the American greenback since the 1980s, as has the Saudi riyal. The […] July 28, 2022
Economy Gulf set for more belt tightening as interest rates keep rising The Gulf’s business owners and consumers are set for tougher times ahead as the region’s central banks followed the US Federal Reserve and increased interest rates on Wednesday. While experts predict that rate hikes are set to continue even further, many analysts believe that the combination of strong GDP growth and high oil prices will […] July 28, 2022
Economy GCC embraces public-private partnerships to drive projects Public-private partnerships will become more important across a wider range of sectors in the Gulf region as countries continue to diversify their economies, say experts. With the total value of planned and unawarded projects in the GCC countries expected to reach $2 trillion, governments are seeking more private sector support in infrastructure projects delivery. “Both […] July 28, 2022
Food & Drink Poor Arab nations face hunger despite Ukraine grain deal Middle East and African countries dependent on Ukrainian grain face the prospect of crippling food insecurity, hunger and misery, despite a deal to restart exports blockaded amid the Russian war. Moscow’s promises may prove unreliable, while skyrocketing grain prices could spell dire outcomes for the region’s hungriest and most vulnerable nations, experts told AGBI. The […] July 28, 2022
Development Middle East nets half of China’s Belt and Road funding The Middle East received the largest share of China’s $28.4 billion investments through its Belt and Road Initiative (BRI) during the first half of 2022, with Saudi Arabia the single biggest recipient. The BRI was launched by Chinese president Xi Jinping in October 2013. Over the last nine years a total of $932 billion has […] July 27, 2022
Economy Britain’s plunging pound rattles Middle Eastern investors As Britain battles multiple headwinds of an unstable parliament, spiking inflation and a weakened sterling, global investors have taken note. The pound fell to two-year lows against the dollar this month – trading below $1.19 at one point – and Middle Eastern investors are now looking to spread their UK risk, a senior executive at the […] July 27, 2022
Real Estate Gulf investors head outside London to fill up on UK property The Midlands and Northern England are looking ever more appealing to commercial real estate investors from the GCC, according to a new report GCC investors’ appetite for UK property continues to grow, new research has found, driven in part by the surging appeal of regions outside of London. A report from Bank of London and […] July 27, 2022
Retail Ecommerce or bust: in-depth analysis on Gulf online shopping The coronavirus pandemic encouraged many people to embrace online shopping for the first time, leading to a huge spike in global ecommerce. But what does the sector look like now across the Middle East and North Africa? Its three largest ecommerce markets are the UAE, Saudi Arabia and Israel, and together they account for more […] July 27, 2022
Retail The tourists are back – and they want to shop till they drop Hotels in the UAE generated AED11 billion ($3 billion) in revenue during the first quarter of 2022, a 20 per cent increase compared with the same period in 2019 as Gulf tourism continues its recovery from the pandemic. In other regions, tourism has been rebounding slowly and unevenly. According to a report from the UN […] July 27, 2022
Manufacturing Ethical fashion: it’s so right now, but it’s granny chic too Sustainable fashion is a buzzword that’s becoming a sound business proposition, particularly for MENA manufacturers returning to the thrifty practices of their grandparents The QR code on the clothing label takes you to a field where the cotton is grown. Shoppers can swipe to see the cotton being picked by hand and gathered into fluffy […] July 27, 2022
Retail Net zero is old hat, says the mall owner that wants to go bigger Sustainability is high on the agenda of the region’s major retailers, and in early July, Majid Al Futtaim gave an insight into what it is doing to limit its environmental impact, with the release of its latest environmental, social and corporate governance (ESG) report. The retailer, which owns and operates 29 shopping malls across the […] July 27, 2022
Retail Let the tills ring out: retail is back with a vengeance in the UAE The UAE’s leading retailers are benefiting from a post-pandemic boom that has them eyeing further expansion into the region’s largest markets. Dubai was among the first economies to reopen after lockdown in 2020. It welcomed a flood of holidaymakers from all over the world to the relative freedom of the emirate. Anthony Spary, head of office […] July 27, 2022
Banking & Finance What’s behind Saudi Arabia’s dwindling treasure chest? Saudi Arabian reserves have dwindled by almost half in the last five years, with the government splashing out $70 billion on investment plans amid the coronavirus pandemic. In spite of the kingdom’s depleted treasure chest, analysts expressed confidence that the reserves are being redeployed wisely into funds and giga-projects, as oil prices and foreign direct […] July 26, 2022
Retail UAE’s gold clean-up rules will shine in the long-term New UAE gold regulations could take the shine off the sector and lead to a supply and profits squeeze, according to experts. The due diligence rulings were announced last week to help stem the flow of supplies from conflict zones and enhance the UAE’s global reputation in the long-term. The Due Diligence Regulations for Responsible […] July 25, 2022
The Surpluss aims to be ‘Airbnb of business’ in Dubai Just like Airbnb offered an alternative to hotels and Uber challenged the taxi market, Dubai-based Rana Hajirasouli says she wants to “instigate a paradigm shift” to disrupt how companies manage their business resources, while playing a key role in the circular economy. Hajirasouli plans to launch The Surpluss next month, and the best way to […] July 25, 2022
Business of Sport World Cup is an advertiser’s dream worth millions With a projected worldwide audience of five billion people, the 2022 FIFA World Cup is an advertiser’s dream. Although some brands have toyed with the idea of boycotting the event, and may eventually do so due to the controversies that have dogged Qatar’s hosting of the tournament, ignoring one of the world’s biggest sporting spectacles […] July 23, 2022
Banking & Finance Kingdom Holding bucks European investment exit trend Saudi Arabia’s Kingdom Holding Company is investing $269 million in British insurance and asset management firm M&G Plc, despite the trend towards Middle East sovereign wealth funds backing away from Europe. M&G has over $370 billion in assets under management. Kingdom is part-owned by Saudi Arabia’s Public Investment Fund (PIF), manages a global portfolio of […] July 22, 2022
Banking & Finance Saudi bank assets hit $879bn thanks to mortgages and oil Saudi Arabian bank assets grew by 10 percent to reach SR3.3 trillion in assets ($879.43 billion) in 2021, buoyed by the kingdom’s booming mortgage market and a sharp rebound in oil revenues. That’s according to global rankings from The Banker published earlier this month, which also shows that the kingdom’s credit grew by 15.5 percent […] July 22, 2022
Retail Luxury retail rebounds from Covid in the GCC The GCC’s luxury retail market has made a quicker than anticipated recovery following the coronavirus pandemic. An increase in local spending has been a major factor driving the upturn, together with the expansion of the personal luxury market in Saudi Arabia. Figures from Bain & Company show that the GCC luxury goods market shrank by […] July 21, 2022
Economy Mixed reception for UAE’s Golden Visa discount programme Some experts accuse initiative of being mere ‘window dressing,’ while others praise its ingenuity Dubai has bolstered its Golden Visa scheme with associated discounts to help attract high-level entrepreneurs, doctors, academics and creatives to its shores. The government announced this week that it would provide its Esaad privilege card – originally only for public sector employees […] July 21, 2022
Banking & Finance Fresh wave of hedge funds poised to tap UAE The UAE is fast becoming a magnet for overseas hedge funds seeking a low-cost, investor-friendly base amid Brexit, the Ukraine crisis, and changes in working patterns brought about by the coronavirus pandemic. A clutch of hedge funds from the UK and US have set up or expanded operations in Dubai or Abu Dhabi in the […] July 21, 2022
Manufacturing PIF’s Aston Martin deal will put Saudi’s auto industry in fast lane The Saudi Arabian Public Investment Fund’s (PIF) £78m investment in Aston Martin is set to turbocharge the kingdom’s domestic automotive manufacturing industry, according to experts. Last week, the PIF announced it would be a part of a £653 million takeover of Aston Martin Lagonda, and that the kingdom’s sovereign wealth fund — one of the […] July 20, 2022
