WEEKLY BUSINESS ROUNDUP - 1st October 2024 – 7th October 2024

Between January to September 2024, GCC sovereign wealth funds deployed USD 55 bn

Sovereign wealth funds (SWFs) from the GCC deployed USD55 billion in capital across 126 different transactions between January to September 2024. The transactions constituted 40% of all deal-making by sovereign investors globally, on par with 2023 figures. The report further reveals GCC SWFs manage USD 4.9 trillion in capital and are scheduled to break USD 5 trillion in early 2025 and USD 7.3 trillion by 2030. 

 

Arab Monetary Fund reports UAE dominates USD 4.7bn Arab exchange market

As per recent statistics released by the Arab Monetary Fund, the UAE is estimated to account for 47.3% of Arab exchange companies. It is reported total assets of the exchange sector in Arab countries reached USD 4.7bn in 2023, indicating 0.02% growth compared to 2022.

 

CEPA between UAE and Serbia likely to add USD 351mn to UAE's GDP by 2032

The Comprehensive Economic Partnership Agreement (CEPA) between UAE and the Republic of Serbia marks the first agreement under UAE CEPA which is with a country that is not a member of the World Trade Organisation. CEPA between UAE and Serbia features a tariff reduction and elimination of up to 96% across customs tariff lines and serves as a portal to the Balkans and Southeast Europe; thereby driving bilateral economic cooperation. CEPA between UAE and Serbia likely to add USD 351mn to UAE's GDP by 2032. 

 

UAE and Jordan signed CEPA to strengthen bilateral ties and investment potential

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and His Excellency Yarub Falah Al-Qudah, Jordan’s Minister of Industry, Trade and Supply signed the CEPA between UAE and Jordan. The agreement lays the foundation for robust economic cooperation and integration, building further on robust UAE-Jordan economic ties, with non-oil trade reaching over USD 4.2 billion in 2023. The UAE is Jordan’s top foreign investor, with mutual investment between the two countries estimated to be approximately USD 22.5 billion.

 

AMF reports family credit in UAE banks hits USD115bn

As per the Arab Monetary Fund, the family credit in the UAE banking sector reached approximately USD 115bn in 2023. It is reported overall family credit in Arab countries accounted for 38% of total private sector credit at the end of 2023.

 

UAE announces major new tax laws

The Ministry of Finance announced that the UAE Cabinet has approved Decision No. 100 of 2024, which amends certain provisions of the Executive Regulations of Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT). It is reported the amendments were designed in accordance with international best practices, considering GCC Unified VAT Agreement, previous experiences, and stakeholder recommendations. 

 

UAE food sector sets USD 10bn GDP target with public and private sector investment

Industry experts estimated the UAE food sector could hit USD 10 bn by 2030. The country has strategic goals aiming to increase the food sector’s contribution to GDP and achieving this goal will require effective collaboration between the public and private sectors. The recent Future Food Forum turned the spotlight on investing in local talent development to ensure innovation and sector leadership. Other areas of discussion about the food sector included investing in automation and sustainable practices in the food supply chain, surge in demand for transparent food labelling & more. 

 

Dubai tops global foreign direct investment charts with USD 5.9bn of projects in H1 2024

As per Financial Times Limited’s ‘fDi Markets’ data Dubai maintained its position as the world’s top city for attracting Greenfield Foreign Direct Investment (FDI) projects in the first half of 2024. It is reported Dubai attracted 508 Greenfield FDI projects between January to June 2024, constituting 6.2% global share - growing from 5.7% in H1 2023. Ranking ahead of major financial hubs such as London, Singapore and New York City, Dubai held the top global position in attracting Greenfield FDI projects for six consecutive half-year periods since the second half of 2021.

 

Dubai real estate hits record USD 38.6bn in Q3 2024 sales

The Dubai real estate market marked AED 141.9 billion in sales in Q3 2024, surpassing the previous high of AED 124.07 billion set in Q2 2024. These figures indicate 30.1% year-on-year increase in value. Apartments dominated the market with 39,058 sales worth AED 70.5 billion, accounting for 77% of total Q3 2024 transactions. Villa sales in Q3 2024 reached 8,156 units, valued at AED 39.2 billion, marking 16.6% volume increase from Q3 2023.

 

Dubai's RTA generates USD 1bn in revenue through digital channels in 2023

The Roads Transport Authority (RTA’s) digital revenues for 2023 noted a significant 16.8% growth reaching AED 3.705 billion compared to 2022. The total number of digital transactions conducted through RTA’s channels surged to 821 million, indicating 1% increase from 2022. Transactions via smart apps recorded 15.299 million, marking a notable 29% growth.