24 February 2025 – 03 March 2025 | WEEKLY BUSINESS ROUNDUP
March 03, 2025
UAE insurance sector set to grow 20% in 2025
It is reported the UAE’s insurance sector is poised for growth, expected to range between 10% and 20% in 2025, following an estimated 20% expansion in 2024. Further it is estimated other Gulf countries will experience similarly favourable growth conditions in their insurance markets, with expected growth rates ranging from 5% to 15%.
Digital ticketing innovations reduce paper consumption in MENA by more than 50%
It is reported the launch of mobile ticketing system has led to the use of less than half of the paper tickets compared to previous years in the MENA region. Driven by government led strategies like Dubai Paperless Strategy and Middle East Green Initiative (MGI), the use of digital processes in the ticketing system have reduced printing of tickets and helps in fraud prevention.
UAE and Central African Republic sign CEPA to boost USD252m trade relations
Strengthening economic and diplomatic ties the UAE and the Central African Republic (CAE) signed a Comprehensive Economic Partnership Agreement (CEPA) deal. The agreement aims to open new avenues for trade, investment, and cooperation that cater to the interests of both nations. The agreement is likely to bolster growth and prosperity increasing bilateral trade beyond AED3.67bn (USD 999m) over the next five to seven years.
Property developers in UAE face surging costs due to new launches, labour shortage & strained supply chains.
It is reported the boom in new real estate projects is driving up construction material costs by up to 15%. The rise in material costs and labour shortages are posing key challenges to UAE developers and affecting project budgets and completion timelines along with squeezing profit margins. Further it is observed there is a shift towards innovative construction techniques like modular building and prefabrication to streamline execution and reduce costs.
New global wealth inflows are reshaping the UAE property market
The UAE serves as a magnet for global UHNWIs with an expected increase of 39% by 2026. New trends in investment inflows are shaping the UAE property market - especially prospects of higher returns and tax advantages. The Dubai 2040 Urban Master Plan and the Dubai Economic Agenda (D33) are gamechangers in transforming the country’s property landscape.
UAE reminds taxpayers to submit registrations in March to avoid fines
The UAE’s Federal Tax Authority (FTA) has reaffirmed the need for all natural persons who are subject to Corporate Tax to submit their Tax Registration applications for Corporate Tax no later than the end March 2025. Violating tax regulations could incur associated administrative penalties.
UAE cements position as global hub for FDI; 200,000 economic licenses issued in 2024
It is reported, in 2024, the UAE issued 200,000 new economic licences across various economic activities, with more than 1.1m companies and economic institutions operating in its markets. The total new and announced capital inflows of foundational Foreign Direct Investment (FDI) in 2023 amounted to USD 16bn.
Dubai ranked world’s top destination for attracting Greenfield FDI for fourth successive year
As per the Financial Times Ltd.’s ‘fDi Markets’ data, Dubai ranked as the world’s No.1 destination for Greenfield Foreign Direct investment (FDI) projects for the fourth successive year in 2025. Dubai attracted 1,117 Greenfield FDI projects in 2024 – the highest in its history.
30% surge in luxury car rentals in Dubai, Abu Dhabi amid rise in business, event-related travel
The UAE reported a marked increase in the renting of high-end, flashy cars by high-ranking corporate professionals and top-tier entertainment and sports personalities, with service providers – recording more than 30% increase in demand in 2024 and expecting a further rise in 2025.