UAE to hit $1tn non-oil trade target 4 years early, says official

UAE to hit $1tn non-oil trade target 4 years early, says official
UAE trade is growing ahead of the target pace. Shutterstock
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Updated 16 June 2025
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UAE to hit $1tn non-oil trade target 4 years early, says official

UAE to hit $1tn non-oil trade target 4 years early, says official
  • Non-oil foreign trade increased by 18.6% year-on-year in Q1
  • Non-oil exports recorded year-on-year growth of 41%

RIYADH: The UAE is set to achieve its 4 trillion dirhams ($1.089 trillion) target for non-oil foreign trade within two years and ahead of the original 2031 goal, according to the country’s vice president.

In a post on X, Sheikh Mohammed bin Rashid Al-Maktoum highlighted the country’s rapid economic progress, stating that key indicators have surpassed global benchmarks.

This acceleration in trade is mirrored in other areas of the economy. The UAE reported a 4 percent growth in gross domestic product in 2024, with non-oil sectors contributing 75.5 percent of the overall output as diversification efforts gained momentum.

“Our non-oil foreign trade increased by 18.6 percent year-on-year in the first quarter of this year (global average 2-3 percent) — Its volume in the first quarter of this year amounted to 835 billion dirhams. Our non-oil exports grew exceptionally by 41 percent on an annual basis,” Al-Maktoum stated.

He continued: “Our goal is to achieve non-oil foreign trade for the UAE amounting to 4 trillion dirhams by 2031 ... We will reach it within two years ... (four years before the scheduled date).”

Al-Maktoum, who also serves as prime minister, noted that non-oil exports recorded an exceptional year-on-year growth of 41 percent, signaling the country’s strengthening role in international trade.

He further noted that the non-oil sector now contributes 75.5 percent to the national economy, highlighting the country’s successful diversification strategy.

“These are new development indicators for the UAE,” he said, reflecting on the resilience and dynamism of the country’s economy despite global challenges.

Al-Maktoum credited UAE President Sheikh Mohamed bin Zayed Al-Nahyan for leading the country’s transformative economic journey, which he described as achieving “exceptional milestones in the history of the UAE.”

Other countries in the region are also advancing their trade and diversification agendas. 

Saudi Arabia is expanding its non-oil exports, which surged to SR515 billion ($137 billion) in 2024, a 13 percent year-on-year increase and a 113 percent rise since the launch of Vision 2030 in 2016.

Bahrain’s non‑oil sectors are also gaining momentum under its long‑term diversification strategy. In the third quarter of 2024, the non‑oil economy grew by 3.9 percent, accounting for 86.4 percent of real gross domestic product, driving an overall economic expansion of 2.1 percent year on year.


Closing Bell: Saudi main index closes in red at 11,213 

Closing Bell: Saudi main index closes in red at 11,213 
Updated 14 July 2025
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Closing Bell: Saudi main index closes in red at 11,213 

Closing Bell: Saudi main index closes in red at 11,213 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Monday, falling 39.31 points, or 0.35 percent, to end the day at 11,213.59.

The total trading turnover on the benchmark index reached SR4.54 billion ($1.21 billion), with 60 stocks advancing and 190 declining.  

The MSCI Tadawul 30 Index also retreated, shedding 5.46 points, or 0.38 percent, to close at 1,436.97. 

The Kingdom’s parallel market Nomu declined by 80.73 points, or 0.29 percent, closing at 27,356.89. Of the listed stocks, 22 advanced while 56 retreated.  

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price rising by 9.91 percent to SR9.43. 

Other top performers included Saudi Industrial Investment Group, which saw its share price rise by 4.56 percent to SR17.42, and Al Hassan Ghazi Ibrahim Shaker Co., which saw a 4.48 percent increase to SR29.40. 

On the downside, Emaar The Economic City posted the steepest drop of the day, falling 4.12 percent to SR13.73.  

Naseej International Trading Co. fell 4.03 percent to SR102.50, and MBC Group Co. dropped 3.79 percent to SR34.02. 

On the announcements front, Jarir Marketing Co. reported estimated net profits of SR197.2 million for the first half of 2025, marking a 15.2 percent increase from the same period last year. 

In a statement on Tadawul, the company attributed the estimated increase to a 4.5 percent rise in gross profit, driven by higher sales of after-sales services along with improved profit margins and an increase in other income. 

Jarir’s shares gained 1.27 percent, closing at SR12.79.

Advanced Petrochemical Co. also announced its estimated financial results for the same period. The firm’s net profits were estimated to reach SR82 million, up by 95.2 percent from the same period last year. 

The company said that the increase was driven by an 8 percent rise in net revenues, lower propane and purchased propylene prices. 

Advanced Petrochemical Co. also announced the completion of construction and successful operational launch of its Propane Dehydrogenation plant, capable of producing 843,000 tonnes of propylene annually, along with two PolyPropylene plants operated by Advanced Polyolefins Industry Co. with a combined capacity of 800,000 tonnes per year. 

The facilities, located in Jubail Industrial City, mark a significant milestone in the company’s expansion in the petrochemical sector, according to a statement. 

APOC, a joint venture between Advanced Global Investment Co. and SK Gas Petrochemical Pte., will begin contributing to Advanced Petrochemical Co.’s consolidated financial results starting in the third quarter of 2025. 

Advanced Petrochemical shares closed 0.32 percent higher at SR31.48. 


Italian firm Webuild secures $600m contract as Diriyah project gains pace

Italian firm Webuild secures $600m contract as Diriyah project gains pace
Updated 14 July 2025
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Italian firm Webuild secures $600m contract as Diriyah project gains pace

Italian firm Webuild secures $600m contract as Diriyah project gains pace

JEDDAH: Saudi Arabia’s Diriyah Square project has awarded a $600 million contract to Italian construction firm Webuild, marking a major step forward for the Kingdom’s heritage-driven development.

The contract, awarded to a subsidiary of the Italian group — Salini Saudi Arabia — covers the construction of 70 buildings and public spaces within the mixed-use development, which forms part of the broader Diriyah master plan. 

With this latest award, Webuild’s total involvement in the sit, known as the City of Earth, now stands at roughly $2 billion, the company said in a statement. 

Diriyah Square is a central component of Diriyah Co.’s strategy to transform the historic district into a commercial, residential, and cultural hub. 

The project is one of five giga-projects backed by Saudi Arabia’s Public Investment Fund, aimed at reshaping the Kingdom’s economy and tourism offering under the Vision 2030 plan. 

Diriyah will contribute approximately SR70 billion ($18.6 billion) directly to the Kingdom’s gross domestic product, create nearly 180,000 jobs and will be home to an estimated 100,000 people. 

Diriyah Co.’s group CEO Jerry Inzerillo said: “Diriyah Square is one of our most exciting, anticipated and prestigious districts, and we are extremely pleased to have signed with Salini to deliver it, bringing their immense global experience to the table.”

He added that this marks another important milestone in their development journey, paving the way for Diriyah Square’s retail spaces to welcome a diverse range of visitors — from nearby residential communities and surrounding office hubs to the millions who visit each year.

The contract covers Package 3 Finishing and mechanical, electrical, and plumbing, delivering a pedestrian-friendly environment in traditional Najdi style across 365,000 sq. meters. Webuild is also working on the 10,500-space underground parking facility, awarded in 2022 and currently 55 percent complete, alongside structural packages 3, 6, and 7. 

According to Diriyah Co., the project aims to create a retail district showcasing 400 brands across retail, leisure, and dining.  

In a statement released by Webuild, CEO Pietro Salini said: “We are proud to be able to contribute to a project of such symbolic and strategic value for Saudi Arabia. Our presence in the Kingdom will be further strengthened by work that will have a positive impact on the area as well as the local community.” 

He added that the company has operated in Saudi Arabia since 1966 and has completed more than 90 projects.

“We continue to support the country to develop some of the most challenging infrastructure projects in the world, especially in sectors such as civil buildings, sustainable mobility, and desalination,” Salini said. 


BYD plans major Saudi expansion following Tesla’s market entry

BYD plans major Saudi expansion following Tesla’s market entry
Updated 14 July 2025
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BYD plans major Saudi expansion following Tesla’s market entry

BYD plans major Saudi expansion following Tesla’s market entry

RIYADH: Chinese electric vehicle giant BYD Co. is aiming to triple its presence in Saudi Arabia after Tesla Inc.’s recent market entry, the firm’s managing director for the Kingdom has announced.

Currently operating three showrooms, BYD plans to expand to 10 locations by late 2026, according to Jerome Saigot. 

The expansion comes after Tesla entered the Saudi market in April with a Riyadh showroom, joining BYD and fellow Chinese firm Geely.

The development aligns with Saudi Arabia’s broader strategy to establish itself as a regional EV hub, targeting 30 percent EV adoption by 2030 as part of its Vision 2030 economic diversification plan.

“Saudi is a complex market. You need to go fast. You need to think big,” Saigot said in an interview with Bloomberg, adding: “We are not here to stay at 5 (thousand) or 10,000 cars a year.” 

Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand, Ceer, and supporting charging infrastructure development. 

However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges, Bloomberg reported, citing data from PwC.

Saigot told Bloomberg that Tesla’s presence in the Kingdom was a positive development, helping to boost consumer awareness of EVs.

“The more Tesla communicates on marketing, the better it is for us,” said Saigot, who started at BYD in April after serving in previous roles at Nissan Motor Co. and Great Wall Motor Co.

BYD has been closing the gap with Tesla globally, outselling the US automaker in Europe for the first time in April. 

The Kingdom’s push toward electric mobility is gaining momentum, with Tesla’s recent market entry seen as a potential catalyst for faster adoption. Alessandro Tricamo, partner at Oliver Wyman, told Arab News in an interview earlier this month that nearly half of Saudis are now considering an EV purchase. 

“Tesla’s entry into the Saudi market is potentially a significant win-win situation,” he said, pointing to the brand’s appeal in a car-centric market and the company’s need to expand beyond declining Western sales. 

Also in an interview earlier this month, Taline Vahanian of Marsh UAE warned of risks for the sector, including battery degradation in extreme heat and costly insurance premiums, which could slow adoption.


Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 
Updated 14 July 2025
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Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

RIYADH: Saudi Arabia’s Public Investment Fund has rise one place to 4th globally among sovereign wealth bodies, with assets surpassing $1 trillion, according to Global SWF’s July rankings.

PIF now ranks behind only Norway’s Government Pension Fund Global and two Chinese entities — the State Administration of Foreign Exchange and the China Investment Corporation — and surpasses the Abu Dhabi Investment Authority and the Kuwait Investment Authority.

The new ranking underscores PIF’s growing influence in global capital markets. 

Crown Prince Mohammed bin Salman has mandated the fund to grow its assets to $2 trillion by 2030, while generating long-term returns and supporting economic diversification. 

PIF’s assets under management climbed to $1.15 trillion in 2024, up from approximately $925 billion the previous year. However, net profit declined during the period due to rising operational costs, interest expenses, and asset write-downs linked to project delays and revisions, according to Global SWF. 

In response, the fund has shifted its strategy and is now prioritizing liquidity through short-term sukuk and commercial paper, while focusing on scalable, revenue-generating assets over high-cost mega-projects. This repositioning also includes increased investments in AI infrastructure, ETF platforms, and co-investments with global asset managers. 

Underscoring its international ambitions, PIF has invested about $200 million in a prime Manhattan real estate project with Related Companies, Bloomberg reported in July.

The fund plans to acquire a two-thirds stake in the 625 Madison Avenue site, where a 1,200-foot tower is under consideration, just steps from Central Park. 

The move builds on PIF’s earlier ties with Related, including a 2020 debt investment, and reflects its appetite for high-profile, long-horizon real estate in strategic global cities. 

Internationally, the fund holds stakes in prominent companies such as Lucid Motors, Nintendo, Uber, and BlackRock, and remains active across sectors including technology, mobility, and renewable energy, as well as gaming and sports. 

According to Global SWF, PIF is moving away from a strategy centered on rapid capital deployment, toward a more disciplined approach focused on financial sustainability, cost control, and delivering measurable returns. 


Egypt approves largest economic support package for SMEs worth $100.8m

Egypt approves largest economic support package for SMEs worth $100.8m
Updated 14 July 2025
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Egypt approves largest economic support package for SMEs worth $100.8m

Egypt approves largest economic support package for SMEs worth $100.8m

RIYADH: Entrepreneurs in Egypt’s priority sectors will soon gain access to affordable financing, as the 2025/2026 state budget earmarks 5 billion Egyptian pounds ($100.8 million) to support micro, small, and medium-sized enterprises.

This partnership between the North African country’s Ministry of Finance and the Micro, Small, and Medium Enterprises Development Agency, which accounts for the largest economic support in the new budget, represents a significant step in bolstering the private sector and productive industries, according to a statement.

This move supports financial policies that boost private sector activity and promote entrepreneurship, aiming for financial sustainability while enhancing MSMEDA’s contribution to business growth nationwide.

It also aligns with recent data showing that startups across the Middle East and North Africa raised $289 million through 44 deals in May, a 25 percent increase from April and a 2 percent rise year-on-year. Egypt led regional fundraising with $125 million, driven by Nawy’s $75 million round alongside seven other deals totaling $50 million.

The newly released ministry statement said the money “will contribute to providing easy financing for young entrepreneurs, targeting priority sectors more closely.”

It added: “This comes as part of a new phase of strong and effective cooperation with the agency, aiming to achieve financial sustainability for the agency to drive economic growth.”

The statement further revealed that Egypt’s Finance Minister Ahmed Kouchouk noted that an initial agreement with MSMEDA has been reached to fund initiatives that support tax relief beneficiaries, promote entrepreneurship, and boost local manufacturing, as well as empower low-income households and advance export-focused projects.

Kouchouk added that this fiscal year, the initial group of businesses enrolling in the simplified and unified tax system would receive access to preferential, low-cost financing.

Basel Rahmi, CEO of MSMEDA, commended the Ministry of Finance’s efforts to back emerging businesses and boost private-sector expansion.

Rahmi praised the minister’s proactive vision, noting it would open doors for empowering young entrepreneurs economically.

In June, a statement issued by the Ministerial Group for Entrepreneurship indicated that Egypt’s startup ecosystem saw notable progress in securing venture capital and debt financing in the first five months of the year, with tracked deals totaling $228 million since January.

The statement further revealed at the time that 16 deals were completed between January and May, with 11 of them publicly disclosing investments amounting to $156 million. These investments represented a 130 percent rise compared to the volume during the same period last year.