Dubai sees 550% annual rise in global SMEs attracted to the emirate

The emirate’s international chamber has revealed 104 SMEs were attracted to Dubai in the 12 months to the end of December, a development that underlines its ambitions to double the size of the emirate’s economy and consolidate its position among the top three global cities.
The emirate’s international chamber has revealed 104 SMEs were attracted to Dubai in the 12 months to the end of December, a development that underlines its ambitions to double the size of the emirate’s economy and consolidate its position among the top three global cities.
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Updated 27 March 2024
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Dubai sees 550% annual rise in global SMEs attracted to the emirate

Dubai sees 550% annual rise in global SMEs attracted to the emirate

RIYADH: Asian and Australian businesses helped fuel a 550 percent annual rise in small and medium enterprises setting up in Dubai in 2023, according to a report.

The emirate’s international chamber has revealed 104 SMEs were attracted to Dubai in the 12 months to the end of December, a development that underlines its ambitions to double the size of the emirate’s economy and consolidate its position among the top three global cities.

According to a statement, 32 percent of the firms shifting to the emirate were from the Middle East and Eurasia, followed by Asian and Australian SMEs at 29 percent.

Latin America and Europe accounted for 26 percent of companies, while 13 percent attracted were from Africa.

The top sector for these SMEs was trade and logistics at 17 percent, followed by IT at 13 percent, and food and agricultural firms third with 10 percent.

Mohammad Ali Rashed Lootah, president and CEO of Dubai Chambers, attributed the rise to the emirate’s business-friendly environment, the ongoing development of services together with favorable legislation, and the diverse range of investment opportunities available.

He added: “Our network of international representative offices in key global markets has effectively promoted Dubai’s business community and highlighted the emirate’s value for companies seeking global expansion.

“We remain dedicated to contributing to the objectives of the Dubai Economic Agenda, with a primary focus on attracting foreign direct investments in both traditional and emerging sectors.”

The growth in SMEs from across the globe moving to Dubai sits alongside a goal from the emirate’s leadership to see home-grown small businesses expand overseas.

The total number of representative offices across the world operated by the Dubai International Chamber increased by 16 in 2023 and now stands at 31.

This expansion received additional fuel in January when Dubai’s Crown Prince Sheikh Hamdan bin Mohammed announced a 500 million dirham ($136.16 million) plan to help SMEs tap into global markets.

The initiative was launched in conjunction with Emirates NBD, Dubai’s biggest lender by market value, and will see the bank provide financing to companies at competitive rates.

According to a release at the time, the SME sector accounts for 60 percent of the workforce in the emirate.


Saudi housing program Sakani benefits over 32,000 families in Q1

Saudi housing program Sakani benefits over 32,000 families in Q1
Updated 15 April 2024
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Saudi housing program Sakani benefits over 32,000 families in Q1

Saudi housing program Sakani benefits over 32,000 families in Q1

RIYADH: As many as 32,343 Saudi families benefitted from Sakani’s housing options during the first quarter of 2024, marking an annual 15 percent increase.

In collaboration with the Real Estate Development Fund and financial institutions, the program provides a variety of housing support packages to encourage first-time house buyers, including non-refundable financial assistance of SR100,000 ($26,659) or SR150,000.

The number of the Kingdom’s households that purchased their first homes reached 25,391 in the first three months of the year, reflecting the objective of Sakani to offer a variety of residential options and financial solutions.

Founded in 2017 by the Saudi Ministry of Housing and the Real Estate Development Fund, the program aims to increase the proportion of families that own a home in the Kingdom to 70 percent by 2030, in line with the economic diversification strategy Vision 2030.

Figures from Sakani showed that the number of beneficiary households reached 12,184 in March, with 9,381 Saudi families obtaining their first residence.

In January, Sakani announced that more than 100,000 Saudi families benefited from the initiative in 2023, while the number of applicants who obtained their first home over that 12 month period reaching 98,475.

The core objectives of the Sakani initiative are to enable homeownership in the Kingdom by creating new housing stock, assigning plots and properties to citizens, and providing financing for their purchases.

The Sakani website and application provide a wide range of housing facilities and services, such as real estate consultancy, issuance of real estate transaction tax certificates and a display of financing institution rates.

It also provides electronic financing and the disbursement of land contracts, engineering design services, access to certified contractors, and additional services.


Qatar inflation dips 1.4% in March: official data

Qatar inflation dips 1.4% in March: official data
Updated 15 April 2024
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Qatar inflation dips 1.4% in March: official data

Qatar inflation dips 1.4% in March: official data

RIYADH: A fall in food and beverage prices helped drive Qatar’s inflation down 1.4 percent in March as compared to the previous month, official data showed.

According to a report released by the country’s Planning and Statistics Authority, the consumer price index reached 106.67 points in March.

Compared to February, expenses for food and beverages slid by 4.74 percent in March. Prices for recreation and culture witnessed a decline of 5.58 percent during the same period. 

Similarly, costs for restaurant and hotels, as well as furniture and household equipment, decreased by 1.92 percent and 0.34 percent, respectively, in March compared to the previous month. 

On the other hand, prices for clothing and footwear increased by 1.88 percent, followed by expenses for transport, which went up by 0.23 percent. 

Cost of healthcare and communication remain unchanged in March, data showed.

However, the Gulf country’s annual consumer price index edge up by 0.98 percent in March compared to the same month of the previous year.

The year-on-year surge in prices was driven by recreation and culture (8.48 percent), communication (3.84 percent), education (3.48 percent), food and beverages  (2.73 percent), furniture and household equipment (1.28 percent), and miscellaneous goods and services (0.83 percent).

A year-on-year decrease has been recorded in the prices of  clothing and footwear, followed by housing, water, electricity and other fuel. 

Qatar’s economy is expected to stabilize in the near future after experiencing a surge in 2022 due to hosting the FIFA World Cup, according to the IMF.  

The Washington-based lender has forecasted a 1.9 percent growth in the country’s gross domestic product for 2024. 

Highlighting Qatar’s resilience to recent global disturbances, the IMF stated that the country’s economic prospects are promising. 

Furthermore, it noted that the Hamas-Israel conflict has not had any discernible impact on Qatar. 

“Risks are broadly balanced. Maintaining prudent macroeconomic policy and intensifying reform efforts will support Qatar’s resilience to shocks and accelerate its economic transformation,” the IMF said. 


Closing Bell: TASI gains 41 points to close at 12,708, reaches $2.59bn trade volume  

Closing Bell: TASI gains 41 points to close at 12,708, reaches $2.59bn trade volume  
Updated 15 April 2024
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Closing Bell: TASI gains 41 points to close at 12,708, reaches $2.59bn trade volume  

Closing Bell: TASI gains 41 points to close at 12,708, reaches $2.59bn trade volume  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,708.34 points on Monday, gaining 41.44 points, or 0.33 percent.  

The parallel market Nomu also gained 158.48 points, or 0.6 percent, to conclude at 26,548.59.   

However, the MSCI Tadawul 30 Index fell 4.77 points – 0.3 percent – to finish at 1,610.23.  

The main index posted a trading value of SR9.7 billion ($2.59 billion), with 172 stocks advancing and 54 declining. On the other hand, Nomu reported a trade volume of SR103.7 million.  

Saudi Cable Co. was the top performer on TASI as its share price surged 9.89 percent to SR77.80. Saudi Chemical Co. followed next with its share price jumping 7.62 percent to close at SR8.19.  

Salama Cooperative Insurance Co. was also among the top performers, climbing 7.19 percent to SR33.55. Al-Etihad Cooperative Insurance Co. and Al Yamamah Steel Industries Co. increased 6.82 and 6.81 percent to SR26.15 and SR42.35, respectively.  

Conversely, Saudi Tadawul Group Holding Co. recorded the most significant dip, declining 2.73 percent to SR270.40.  

Arabian Internet and Communications Services Co. and the National Co. for Glass Industries also experienced setbacks, with their shares dropping to SR368.20 and SR45.90, reflecting declines of 2.33 and 2.24 percent, respectively. Bupa Arabia for Cooperative Insurance Co. and Saudi Awwal Bank also reported significant losses.  

Nomu’s top performer was Abdulaziz and Mansour Ibrahim Albabtin Co., which saw a 9.49 percent jump to SR45. Amwaj International Co. and Meyar Co. also recorded notable gains, with their shares closing at SR55.60 and SR73.90, marking an increase of 8.59 and 5.57 percent, respectively. Alqemam for Computer Systems Co. and Professional Medical Expertise Co. also fared well.  

Raoom Trading Co. was the worst performer on the parallel market, declining by 7.72 percent to SR145.80. Other underperformers included Al Mohafaza Co. for Education and Mohammed Hasan AlNaqool Sons Co., whose share prices dropped 4.67 percent and 3.68 percent to SR20.80 and SR44.50, respectively.  

Alhasoob Co. and Mulkia Investment Co. declined during the day to settle at SR67.20 and SR34, respectively.  


Egypt’s economic reforms yielding positive results: finance minister

Egypt’s economic reforms yielding positive results: finance minister
Updated 15 April 2024
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Egypt’s economic reforms yielding positive results: finance minister

Egypt’s economic reforms yielding positive results: finance minister

RIYADH: Egypt’s new economic path, focused on structural reforms empowering the private sector to lead growth and attracting investment, has begun to yield positive results, said the country’s finance minister.  

Mohamed Maait highlighted that despite the harsh impacts of global and regional economic crises, Egypt has seen financial indicators surpass budget estimates and targets over the past nine months of the fiscal year 2023-2024, Egyptian daily Al-Ahram reported. 

The minister noted that this success reflects the international recognition of the north African country’s economy for achieving better-than-expected performance metrics.  

Last month, Egypt secured an additional $5 billion in loans from the International Monetary Fund following the central bank’s decision to raise interest rates and allow the pound to depreciate by nearly 40 percent in value. 

Earlier this month, the IMF announced that it would link payments to the country under an $8 billion financial program to Cairo’s decision to allow market conditions to determine the price of its currency and to make foreign exchange available to businesses and private individuals. 

Further emphasizing the economic strategies, Maait pointed out the significant improvements in non-tax revenues, which saw an increase of 122.9 percent, and tax revenues which surpassed 1 trillion Egyptian pounds ($20.6 billion), marking a growth of 41.2 percent annually.   

He proudly noted these gains were achieved without imposing new burdens on citizens or investors, thanks to expanded mechanization intended to broaden the tax base and integrate the informal economy into the formal sector.   

Maait pointed out that the country’s continues effort to boost its economy is evident in the Ministry of Finance’s ongoing dialogues with over 2,000 investment institutions a year.   

The ministry’s Investor Relations Unit plays a crucial role in these engagements, maintaining open dialogue throughout the year and issuing monthly performance reports. 

These reports provide foreign investors with precise, up-to-date economic data, including details about debt levels, deficits, and primary surpluses, the state-owned newspaper reported.  

They also offer a simplified guide on the various incentives, including tax advantages available to investors, aiming to alleviate any concerns and accurately address potential economic risks.  

Meanwhile, data released earlier this month by Egypt's Central Agency for Public Mobilization and Statistics showed a slowdown in the country’s urban consumer price inflation rate to 33.1 percent in March from 36 percent in February.  

Additionally, month-on-month prices rose by 10 percent in the third month of 2024, down from an 11.4 percent increase in the previous period. 

This development follows the central bank’s announcement in early March of a 600 basis points hike in interest rates at an unscheduled meeting, along with a shift to an inflation-targeting regime, allowing the exchange rate to be determined by market forces. 

Furthermore, Egypt’s Ministry of Petroleum and Mineral Resources has announced that construction of a solar power plant at the Assiut Oil Refining Co. has begun, in an effort to lower carbon emissions.   

The project, spearheaded by the consortium of ENPPI and Petrojet, involves the creation of a 10-megawatt solar facility, with an investment of 550 million Egyptian pounds.   

Scheduled for completion within 11 months, this initiative is a part of a broader strategy for energy transition and emissions reduction across the country’s petroleum sector.  

This solar power project is complemented by another initiative at the Egyptian General Petroleum Corp., aiming to produce 6.5 MW of electricity from solar energy, with a similar investment of 500 million pounds.   

Both projects are financed through a EU grant under the Energy Sector Policy Support program, aligning with the ministry’s goal to implement actionable projects that advance the sector’s sustainability objectives.  


Budget Saudi Arabia to buy 70% stake in UAE freight firm Overseas Development

Budget Saudi Arabia to buy 70% stake in UAE freight firm Overseas Development
Updated 15 April 2024
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Budget Saudi Arabia to buy 70% stake in UAE freight firm Overseas Development

Budget Saudi Arabia to buy 70% stake in UAE freight firm Overseas Development

RIYADH: Saudi car rental firm United International Transportation Co. is set to acquire a 70 percent stake in the UAE’s freight forwarder Overseas Development through a recent deal.  

The company, also known as Budget Saudi Arabia, said in a Tadawul statement that the purchase amount was based on the financial evaluation of the acquisition and came in at 13.34 million dirhams ($3.63 million).   

The new sale and purchase agreement comes following the company’s announcement in March that it will procure 70 percent of Overseas Development LLC’s shares in its subsidiaries in Saudi Arabia, UAE, and Kuwait as part of a memorandum of understanding signed at the time.   

In February, the vehicle leasing company was given the go-ahead by the Kingdom’s competition watchdog to acquire Al-Jazira Equipment Co.     

In a Saudi Stock Exchange statement, it was revealed the General Authority for Competition had issued a no-objection notice regarding Budget Saudi Arabia’s complete purchase of the operational lease and car maintenance company, also known as Auto World.   

In 2023, the firm’s net profit after zakat and tax stood at SR277 million ($73.89 million), reflecting a 10 percent surge compared to 2022 figures. 

The increase in net profit in 2023 compared to the previous year was due to maximizing the utilization of the firm’s expanding fleet, both in short-term and long-term rentals. This, coupled with the increased sale of used car units compared to 2022, significantly propelled revenue growth. 

In August 2023, Budget Saudi Arabia signed a non-binding memorandum of understanding to acquire all shares of Auto World by issuing stocks to its owner, the Saudi Economic and Development Co., known as SEDCO.

Budget Saudi is the holder of the largest Budget International franchise. The company has provided its services for over 45 years while building a diverse customer base and operating a fleet of more than 35,000 vehicles. 

The firm also offers various transportation services throughout the Kingdom, including long-term and short-term car rental and the sale of used cars.