Analysis Banking & Finance US interest rate cut will impact UAE bank margins UAE banking sector profits have soared as higher-for-longer interest rates boosted margins and loan defaults remained low. Yet analysts predict that imminent US interest rate cuts will squeeze profitability, despite the likelihood of reduced borrowing costs bolstering loan growth. Dubai’s Emirates NBD reported a record first-half profit of AED13.8 billion ($3.76 billion), while First Abu […] September 6, 2024
Analysis Employment Oman’s fine line between labour localisation and growth Oman this week tightened restrictions on foreign workers’ ability to take on certain jobs in industries including real estate, construction and hospitality. In another labour law revision of this kind in the past two years authorities banned expatriates from serving in some oil and gas engineering roles, the real estate maintenance space, and as travel […] September 5, 2024
Finance Saudi Arabia cuts more red tape to tempt foreign investors Saudi Arabia is simplifying its registration process for foreign investors as part of its strategy to attract more international companies. The government approved a revamp of its investment law last month, aiming to reassure overseas investors that they would be on a level playing field with Saudi nationals. The reforms come into effect in January […] September 4, 2024
Video length: 04:08 VIDEO Gaming Prince Faisal: growth, not profit, is focus for esports Cost-intensive spectator events are not going to be a “serious profit generator”, Prince Faisal bin Bandar Al Saud told AGBI, as Saudi Arabia concluded the first Esports World Cup last week. The event was watched by more than 500 million people but Prince Faisal, president of the Arab Esports Federation, said: “In esports, sustainability is […] September 4, 2024
Video length: 07:05 Analysis Trade India’s Cepa review could cut up rough for UAE diamond trade Dubai’s status as a re-export hub for diamonds to India is under threat as New Delhi pushes for a review of terms it agreed in the Comprehensive Economic Partnership Agreement (Cepa) with the UAE two years ago. India’s commerce secretary Sunil Barthwal raised concerns earlier this month about potential use of loopholes that could weaken […] September 4, 2024
Analysis Banking & Finance Bahrain’s corporate tax just the first in GCC, say experts 15% levy on multinationals from 2025 For companies with $830m revenues Aligns with OECD global minimum Bahrain could be the first “domino to fall” in the GCC after announcing a tax targeting large multinational companies, analysts have ... Register now: It’s easy and free This content is available for registered members only. Register for your […] September 3, 2024
Economy Multinationals in Bahrain face 15% tax Bahrain is to introduce a 15 percent tax on profits generated in the country by large multinational companies on January 1 next year. The domestic minimum top-up tax will apply only to multinationals with global revenues of more than €750 million ($830 million), said the state-run Bahrain News Agency. Companies that meet these criteria, which […] September 2, 2024
Economy Saudi Arabia sets up new business park in Riyadh Saudi Arabia launched a new business park in Riyadh this week, backed by more than SAR1 billion ($270,000) in funding, in an effort to stimulate foreign investment and local job creation. The Boulevard Business Park is located in Riyadh’s Boulevard district which was recently host to the first e-sports ‘World Cup’, adding 60,000 square metres […] August 29, 2024
Video length: 04:56 VIDEO Finance Turks turn to crypto to ‘escape’ currency fluctuations As blockchain platform Tether introduces the first dirham-pegged stablecoin – cryptocurrencies whose value is tied to a currency, commodity or financial instrument – in the UAE, AGBI looks into how unstable economies such as Turkey have used cryptocurrencies as a hedge against inflation. Turkey banned the use of cryptocurrencies for payments in 2021, the same year […] August 28, 2024
Economy Sharp slowdown in companies opening Saudi HQs The number of companies setting up headquarters in Saudi Arabia slowed sharply in the second quarter of 2024, after a rush to Riyadh at the start of the year. The country’s regional headquarters programme came into operation at the start of 2024, forcing international companies wanting to win government contracts worth SAR1 million ($260,000) or […] August 27, 2024
Analysis Banking & Finance Instability in India’s Gift City could push investors to UAE India’s Gift City – a special economic zone located in Prime Minister Narendra Modi’s Gujarat home state – has attracted commitments from backers including sovereign wealth funds from the Gulf. However a halt in approvals to set up family offices has put the brakes on its ambitions to become a global financial hub after regulators […] August 27, 2024
Opinion Economy Oman heads back to investment grade territory The sultanate has shown fiscal prudence and a commitment to restructuring state-owned enterprises August 21, 2024
Analysis Telecoms Analysts question possible Adia bid for India telecoms group Abu Dhabi’s top sovereign wealth fund, Abu Dhabi Investment Authority (Adia), is among the preferred bidders for a minority stake in Vodafone Idea, a struggling Indian telecom company. However, analysts are warning that the deal makes little commercial or financial sense. Vodafone Idea is India’s third largest mobile operator, but has lost about 210 million […] August 20, 2024
Economy Oman sovereign fund’s assets rise 12% to $50bn in 2023 Oman Investment Authority (OIA) reported a 12 percent growth in assets to OR19.2 billion ($50 billion) in 2023 compared to OR17.2 billion a year ago. The sovereign wealth fund’s profits exceeded OR1.7 billion, OIA president Abdulsalam Al Murshidi said in the authority’s 2023 annual report. Last year, the wealth fund contributed OR800 million to the […] August 20, 2024
Energy Heat blackouts blamed on Kuwait’s fuel supply issues Rolling power cuts that have beset oil-rich Kuwait over the last two days have been blamed on technical issues experienced in fuel supplies. Several residential neighbourhoods experienced rolling blackouts over the weekend due to “a fuel supply disruption”, according to a statement from state-run Kuna news agency. The cuts also closed down desalination plants and […] August 19, 2024
Analysis Telecoms Worst is over for Etisalat shares but don’t expect a rebound Shares in UAE blue-chip e& – more commonly known as Etisalat – have fallen by more than half from a 2022 peak as investors fret over difficulties related to some of the telecom operator’s foreign investments. Yet analysts believe these issues are now priced in and so the worst should be over for the stock. Etisalat […] August 19, 2024
Analysis Markets Oman reveals plan to steer IPOs to Muscat exchange Oman’s Financial Services Authority has revealed its strategy to overhaul the country’s capital markets – which could provide extra funds for underrepresented sectors and lure investors looking for less saturated markets, according to analysts. However, the success of the plan will depend on how incentives for listing are implemented, they warn. Trading activity has been […] August 15, 2024
Opinion Economy Oman’s planned income tax is an economic gamble High earning expats might be tempted to move to the sultanate's tax-free neighbours August 13, 2024
Analysis Economy Kuwait overhauls tax system and signs UAE treaty Kuwait, which has developed a reputation as an economic laggard among wealthy Gulf states, is undertaking an overhaul of its tax regime to meet global standards and reduce reliance on oil revenues. The Gulf state plans to introduce a 15 percent business profits tax, new rules on transparency and compliance with international agreements, and an […] August 12, 2024
Retail Turkey hikes customs duties on overseas ecommerce sales Turkey is raising customs duties on goods bought online from international retailers as it seeks to defend local retailers against the global ecommerce giants. Under regulations announced on August 6 and due to come into force on August 21, items valued at up to €30 ($32.75) ordered online from a European Union vendor and delivered by […] August 8, 2024
Economy Egypt’s new finance minister sets out plan to reduce debt Egypt aims to cut its tax-to-GDP ratio to below 85 percent by the end of June 2026 and issue new debt in pounds to reduce the proportion of external debt, its new finance minister said on Tuesday. But Ahmed Kouchouk and his team pushed back on calls to raise taxes. In his first press conference […] August 7, 2024
Video length: 05:06 VIDEO Construction The Gulf needs better construction codes Devastating building fires in Kuwait and Qatar this summer, and April’s flooding in the UAE, have raised awareness of the need for more stringent construction codes in the Gulf. National Fire Protection Association president Jim Pauley told AGBI that sometimes rules are in place but it is “the application of the regulation that needs to […] August 5, 2024
