Economy Qatar’s non-oil sector up but real estate slows Business conditions for Qatar’s non-oil private sector continued to improve in July. However there was a lack of demand for real estate following previous growth in construction that was linked to the Fifa World Cup. Output, new orders, employment and purchasing all expanded, with Qatar’s latest Purchasing Managers’ Index (PMI) reaching 54.0 in July, up […] August 7, 2023
Energy Saudi oil cut extended as it posts budget deficit Saudi Arabia will extend a one million barrel per day voluntary crude oil output cut into September, as fears of a global economic slowdown continue to weigh on demand. The decision was made as the kingdom announced a budget deficit for the second quarter of the year. Negative GDP growth led to analysts declaring that […] August 4, 2023
Manufacturing Sabic profit slumps 85% as recovery slows Saudi Basic Industries Corp (Sabic), one of the world’s largest petrochemical companies, has reported an 85 percent slump in net profit to SAR 1.8 billion ($480 million) during the first half of this year. Sabic’s shares have fallen 4.6 percent since January, and remained mostly flat after the results were released. Experts said a recovery […] August 3, 2023
Real Estate Oyo expands to meet expat demand for Abu Dhabi flats Indian hospitality chain Oyo is adding 2,000 apartments to its offering in Abu Dhabi as demand grows for expat housing. The furnished units will be available for long-term rent and many will be located in business districts such as Khalifa City, Al Zeina, Al Raha, Al Reem Island, Al Reef and Al Mushrif. Other apartments […] August 2, 2023
Real Estate Aldar targets China as sales to overseas buyers balloon Aldar Properties is working to attract more Chinese customers as it reports a fourfold increase in sales to overseas and expat buyers for the first half of the year. “One interesting demographic we are starting to see is the Chinese,” said Faisal Falaknaz, group chief financial and sustainability officer at the Abu Dhabi developer. “It […] August 1, 2023
Tourism Accor revenue rises sharply across Middle East hotels Accor, Europe’s largest hotel group, reported a 51 percent jump in revenue per available room across the Middle East, Asia and Pacific in the first half of the year. The Paris-based hotelier did not give a more detailed breakdown of revenue growth, but said the Middle East accounted for 27 percent of the €128 million […] July 31, 2023
Aviation Qatar Airways to buy 203 new planes despite profit fall Qatar Airways is set to acquire 203 new aircraft despite reporting a 21 percent drop in net profit in the fiscal year to the end of March. The state-owned airline’s 2023 annual report, published this week, showed that its capital commitments for the purchase of aircraft and engines has increased from QR242 billion to QR255 […] July 28, 2023
Infrastructure Carbon targets deter Middle East power project developers Developers are becoming increasingly wary of bidding for long-term infrastructure deals in the Middle East because the terms go beyond their own carbon neutral targets. According to industry sources they are particularly struggling to be able to work on projects involving thermal power plants without carbon capture and storage (CCS) because the terms can stretch […] July 27, 2023
Banking and Finance Abu Dhabi asset manager plans $250m carbon fund Offset8 Capital, an Abu Dhabi asset management company, is planning to raise $250 million for a carbon investment fund focused on financing climate mitigation and adaptation projects. Proposed investments will aim to support local communities in Africa and Southeast Asia on projects involving mangrove restoration, reforestation and biochar. Offset8, which is based in the financial […] July 27, 2023
Economy Saudi 2023 growth forecast cut to 1.9% by IMF The International Monetary Fund (IMF) has cut Saudi’s 2023 GDP forecast to 1.9 percent, as the kingdom’s oil production cuts weigh on its economic performance. Industry experts do not see this impacting the kingdom’s investment drive and the development of its massive slate of giga-projects. It may lead to further debt issuance to finance any […] July 26, 2023
Aviation Saudia international passengers up 52% in H1 Saudi Arabian Airlines (Saudia) reported a 52 percent year-on-year rise in international passenger traffic in the first half of 2023, climbing to 7.4 million passengers. The growth was partly driven by the state-owned airline extending its reach to four continents. Saudia operated a total of 37,600 international flights, marking 30 percent growth. In total the […] July 24, 2023
Real Estate Foreign investment up 363% in Abu Dhabi real estate Abu Dhabi real estate encountered a record 363 percent rise in purchases by foreign buyers in the first half of 2023, according to new data. Foreign purchasers spent AED834.6 million ($227.2 million), Abu Dhabi’s Department of Municipalities and Transport (DMT) reported. The DMT figures showed that the most popular location among overseas investors was Saadiyat […] July 20, 2023
Banking and Finance UK helps UAE address financial grey list challenges The UK is helping the UAE deal with shortcomings highlighted by the Financial Action Task Force when it grey listed the Gulf state, a British government minister has told AGBI. “Our officials have very strong links in terms of assisting the UAE in how to improve systems and internal compliance and what sort of transparency […] July 20, 2023
Energy UK-Morocco renewables project ‘on track for 2030’ The $20 billion Xlinks Morocco-UK renewables project is “on track for completion in 2030”, the company’s CEO Simon Morrish has told AGBI, with approval now granted to build the facility that will manufacture the subsea cables critical to its development. The cable operations will be overseen by XLCC which was set up by Xlinks in […] July 19, 2023
Renewable Energy Cop28 action plan unveiled by Al Jaber With the world in the grip of extreme weather events, Cop28 president-designate Sultan Al Jaber has announced a four-pillar climate action plan ahead of the forthcoming summit. The UAE’s climate envoy went on to issue a rallying cry to delegates to build the “energy system of the future”. “We need everyone to play their part […] July 18, 2023
Analysis Renewable Energy ‘A long way to go’ to reduce the Gulf’s carbon emissions As some of the world’s largest emitters of carbon dioxide, big exporters of hydrocarbons and beneficiaries of high per capita incomes, the spotlight is on the Gulf states’ efforts to reduce their carbon emissions. Expectations are high – and likely to become higher – as the UAE prepares to host Cop28 in November. “There is […] July 17, 2023
Real Estate Saudi’s new mortgage scheme to encourage homebuyers Saudi Arabia has launched a new mortgage guarantee services firm in an effort to increase home ownership among nationals. The Saudi Real Estate Development Fund (REDF) has launched Dhamanat, a wholly owned subsidiary, with SAR18 billion ($4.7 billion) in capital to provide insurance, alongside mortgages. Mortgage issuance fell by more than one third year-on-year in […] July 14, 2023
Real Estate Dubai residential property prices surpass 2014 peak Dubai’s residential property prices climbed at their fastest rate in almost a decade in the year to June 30, with villa prices topping previous records set in 2014. Property consultancy CBRE reported that average residential prices in June increased by 16.9 percent, up from the 15.9 percent growth registered a month earlier. Meanwhile, international consulting […] July 12, 2023
Food & Drink Chocolate shops squeezed as cocoa bean prices hit 46-year high While chocolate lovers the world over celebrated World Chocolate Day on Friday, retailers are watching the markets anxiously. Cocoa bean prices soared to a 46-year high last week in London and have continued to rise since. The surge in bean prices is due to ongoing supply shortages and is set to increase further, according to […] July 7, 2023
Oil & Gas Gulf markets subdued as oil fails to rally after cuts Oil prices were little changed on Thursday as fears of a global economic slowdown overshadowed tighter crude supply following extended output cuts announced by top exporters Saudi Arabia and Russia earlier this week. The total cuts now stand at more than 5 million barrels per day (bpd), equating to 5 percent of worldwide oil output. […] July 7, 2023
Exclusive Infrastructure UK must court Gulf investors despite Thames Water crisis The UK’s investment minister has said that the country must continue to incentivise foreign investment in its utilities sector, despite ongoing concerns that Thames Water, which is part owned by Abu Dhabi, could be on the verge of collapse. In an interview with AGBI this week, Lord Dominic Johnson, a minister of state in the […] July 6, 2023
Banking and Finance Investcorp buys $100m stake in comms firm SEC Newgate Bahrain’s alternative investment firm Investcorp has invested $100 million to acquire a controlling stake in communications and advocacy group SEC Newgate. Investcorp’s funding will help the Milan-based business accelerate its development strategy, the companies said on Monday. The group aims to expand in Europe, the Middle East, Africa and the Asia-Pacific region through organic growth […] July 3, 2023
