Analysis Real Estate Pricey homes and packed hotels: the year in GCC real estate The story of the Gulf property market this year was about decreased housing affordability and a growing gap between top-quality properties and second-tier ones. Meanwhile, surging numbers of international visitors in the UAE, Saudi Arabia and Qatar brought thriving hospitality and retail sectors in the main tourist hotspots. Industry observers expect 2025 to bring more […] December 27, 2024
Tourism Abu Dhabi records 26% rise in international visitors Abu Dhabi welcomed almost five million guests to its hotels in the year through to October. The latest figures from the Department of Culture and Tourism (DCT) Abu Dhabi show that the number of international guests was up 26 percent year on year over the 10-month period. Visitors mainly came from India, China, Russia, the […] December 27, 2024
Economy Turkish central bank surprises with large rate cut Turkey’s central bank has cut its key lending rate by a higher than expected 250 basis points. The bank lowered its lending rate to 47.5 percent on December 26, down from the 50 percent it has stood at since March. This is the first reduction in nearly two years and a sign that the bank […] December 27, 2024
Trade Saudi Arabian non-oil exports increase by 13% Non-oil exports from Saudi Arabia increased by almost 13 percent to SAR25.38 billion ($6.76 billion) in October compared to the same month last year, according to the latest government trade report. Chemical products made up 26.8 percent of non-oil exports over the month, followed by plastics and rubber products at 23.7 percent, the General Authority […] December 27, 2024
Finance Turkey to end FX-protected lira deposits next year The Turkish central bank plans to end the forex-protected lira deposits (KKM) scheme in 2025 after its balance fell to $34.2 billion as of December 20 2024. The share of Turkish lira deposits within total deposits rose to 58.6 percent, and the share of KKM within total deposits fell to 6.2 percent, the central bank […] December 26, 2024
Economy Egypt gets IMF’s initial nod for $1.2bn loan tranche The International Monetary Fund (IMF) and Egypt have reached a staff-level agreement, paving the way for the release of $1.2 billion on the fourth review under its extended fund facility. The loan disbursal, however, is subject to approval by the fund’s executive board. “The Egyptian authorities have continued to implement key policies to preserve macroeconomic […] December 25, 2024
Economy Kuwait to impose 15% tax on multinational companies Kuwait will impose a 15 percent tax on multinational companies operating across multiple jurisdictions from January 1 2025. The cabinet gave a go-ahead to the draft law at the weekly meeting headed by prime minister Sheikh Ahmad Al Sabah, state-run Kuwait News Agency reported. The proposed tax is in line with the global tax standards […] December 25, 2024
Analysis Agriculture Why rain is critical for Morocco’s economy Analysts hope that heavy rainfall in the south of Morocco this autumn will refill aquifers across the country that have been depleted by six years of intense drought, and improve crop yields for 2025. The country’s agriculture sector is a major employer, and accounts for 12 percent of Morocco’s GDP, but it is volatile. The World Bank is cautiously predicting […] December 24, 2024
Finance UAE economic growth to accelerate in 2025 and 2026 The UAE’s real GDP growth is expected to remain stable at 4 percent in 2024, accelerating to 4.5 percent and 5.5 percent in 2025 and 2026, respectively. Growth expectations are underpinned by strong performances in key sectors such as tourism, transportation, financial and insurance services, construction, real estate and communication, the UAE’s central bank said […] December 24, 2024
Finance Turkey’s central bank forecast to slash policy rate Turkey’s central bank is expected to reduce its key policy rate by 150 basis points (bps) from the existing 50 percent, according to a survey by state-run Anadolu Agency. Among the 14 economists surveyed, 10 projected a rate cut between 47.5 percent and 50 percent. The remaining four economists forecast no change. Looking ahead, the […] December 24, 2024
Finance Sharjah sets record 2025 budget at $11.4bn Sharjah ruler Dr Sultan bin Mohammed Al Qasimi has approved an AED42 billion ($11.4 billion) budget for 2025, the largest in the emirate’s history. The budget aims to foster financial sustainability, bolster social welfare and ensure the sustainability of vital resources such as energy, water and food, the UAE state-run Wam news agency reported. Expenditure […] December 24, 2024
Opinion Economy The state of the Russian economy in 2025 should be a concern for the Gulf Soaring defence expenditure means the Russian economy is overheating at a rapid rate December 23, 2024
Analysis Economy Why Saudi Arabia expects public debt to rise Saudi Arabia expects its public debt to steadily rise in the next three years, despite the massive financial reserves controlled by the central bank and the Public Investment Fund (PIF). Estimates by the Saudi Finance Ministry show that public debt will swell by around SAR375 billion ($100 billion) between the end of 2024 and the […] December 23, 2024
Economy Europe to loan $1bn to Egypt to meet part funding needs The European Commission has agreed to disburse €1 billion ($1.04 billion) in loans to Egypt to cover part of its financing needs for 2024/2025. The loan will be released after Cairo fulfils the policy conditions agreed with the European Union (EU) under the ongoing macro-financial assistance. The funding will also support macroeconomic stability and support […] December 23, 2024
Economy GCC economy to grow at 4.5% in 2025 on oil support The GDP of the six Gulf Cooperation Council (GCC) countries is forecast to grow at a higher pace in 2025 to reach 4.5 percent. While the regional GDP is expected to grow by 3.7 percent in 2024, it will stabilise at 3.5 percent in 2026, the UAE state-run Wam news agency reported, quoting a Statistical […] December 23, 2024
Tax UAE indirect taxes generate up to $3bn per year Indirect taxes in the UAE generate between AED10 and AED11 billion ($2.72 billion-2.99 billion) annually, contributing substantially to the Gulf state’s AED65 billion federal budget, a senior government official has said. These tax revenues bolster economic growth and fortify the federal government’s financial position, the UAE state-run Wam news agency reported, quoting Younis Haji Al Khoori, […] December 23, 2024
Opinion Finance My humble submission for the 2025 Pulitzer Prize Our editor-at-large reviews his year in columns and finds his triumphs abound December 20, 2024
Tax More taxes could shield GCC from protectionism, says IMF GCC countries should consider new taxation options to shore up their public finances and shield their economies from rising global protectionism, according to the International Monetary Fund. That means regional governments need to continue diversifying away from fossil fuels and boost the role of the private sector, all the while identifying new tax revenues and […] December 20, 2024
Economy UAE gold reserves surge 28% in 2024 The UAE central bank’s gold reserves rose by 5.3 percent month on month to AED23.2 billion ($6.3 billion) by the end of the third quarter of 2024. Year-to-date, the reserves surged by 28 percent, or over AED5 billion from AED18.2 billion at the close of 2023, the UAE state-run Wam news agency reported, citing the […] December 20, 2024
Opinion Banking and Finance Politics will rule in the surreal world of Syrian banking Do not expect the country to have an efficient system any time soon December 19, 2024
Banking and Finance Banks strike debt deal to take stake in Istanbul’s cruise port Five banks will take a 49 percent stake in Istanbul’s luxury cruise terminal after striking a debt restructuring deal worth €1.02 billion ($1.1 billion) with Dogus Group, owned by Turkish billionaire Ferit Şahenk. Under the agreement, Yapi Kredi Bankasi AS will acquire up to a 13 percent stake in Galataport Istanbul Liman İşletmeciliği ve Yatırımları […] December 18, 2024
Finance Brics currency branded ‘fantasy’ as Trump threatens tariffs Suggestions that the UAE would drop its dollar peg in favour of a Brics currency have been described as “fantasy” by the head economist at Standard Chartered bank. The UAE, along with Iran, Egypt and Ethiopia, joined the non-Western-aligned Brics group – named for its earliest members Brazil, Russia, India, China and South Africa – […] December 16, 2024
