Deloitte experts believe that Expo 2020 Dubai will be a major “game changer for Dubai” whereby it will create significant changes — whether opportunities or challenges — in most industries and market sectors that could spill over to other countries in the region.
“It is clear that Expo 2020 will go beyond a local showcase of commerce, technology and infrastructure, however impressive these things may be,” said Mutasem Dajani, Deloitte UAE regional managing partner.
He adds: “Dubai will itself become an agent for future global progress as securing sustainable energy and resources, connecting and moving people, goods and services across markets and exploring the intrinsic spirit of entrepreneurship come together in a location that is uniquely synonymous with achievement in each of these areas.”
Humphry Hatton, CEO of Deloitte Corporate Finance Limited (DCFL) regulated by the DIFC, addresses international investments in the region and adds that hosting Expo 2020 in Dubai will “further the attractiveness of Dubai as a base for overseas companies wishing to invest in the Middle East.”
Anis Sadek, Dubai managing partner at Deloitte points out that, “It only takes a quick analysis of the impact of an expected additional 20 million international visitors over a six-month period to see that significant investment in hospitality and retail infrastructure will be required.”
Rashid Bashir, head of the strategy practice at Deloitte Middle East cautions that “it would be beneficial to develop a dedicated legacy plan to ensure that the event’s potential as a catalyst to transform Dubai’s economy is maximized”.
Their views are grouped in the report “Expo 2020: A game changer for Dubai”, and “Countdown to FATCA” available in the spring 2014 issue of the Deloitte Middle East Point of View (ME PoV) publication which also includes the views of other Deloitte partners and industry experts Cynthia Corby, Akbar Ahmad and Jesdev Saggar on the impact of Expo 2022 in the construction, financial services, and infrastructure and capital industries.
Expo 2020 game will be changer for Dubai
Expo 2020 game will be changer for Dubai
French minister highlights ‘immense potential’ of collaboration between France, Gulf states
- Opening remarks at Paris event by French Economy Minister Bruno Le Maire underscore close relationship
- Chairman of Afalula says ‘Kingdom of Saudi Arabia has undergone a profound transformation, unprecedented and certainly unparalleled in its speed’
PARIS: Bruno Le Maire, the French minister of economy, finance, and industrial and digital sovereignty, highlighted “the closeness of our ambitions and the immense potential of our collaboration between France and the Gulf states,” during his opening speech at the second edition of Vision Golfe in Paris.
Le Maire emphasized three strategic areas to strengthen the collaboration: economic diversification, investment, and curbing global warming.
He added: “The Gulf countries have taken a major turning point to diversify away from oil and gas revenues, and to emerge in the high value-added sectors of the future. France is ready to share its expertise in infrastructure, industry, tourism, healthcare and cutting-edge technologies.
“Together, we can stimulate growth, create jobs and improve the quality of life of our fellow citizens.”
Vision Golfe 2024 is a two-day event held at the Ministry of Economy in Paris. It reflects the continued joint efforts of French and GCC (Gulf Cooperation Council) stakeholders to foster economic and commercial partnerships, and boasts more than 1,000 participants.
The event offers a platform to promote cooperation in a range of sectors, including trade, energy and the environment, sports, and culture, while bringing together key economic experts, government ministers, representatives of startups, and senior executives.
The event draws on the long-standing relationship between France and the GCC states, particularly between France and Saudi Arabia, which has been marked by significant political, economic, and cultural developments in recent years.
Jean Yves Le Drian, the chairman of the French Agency for AlUla Development, known as Afalula, said: “In recent years the Kingdom of Saudi Arabia has undergone a profound transformation, unprecedented and certainly unparalleled in its speed. Under the leadership of the crown prince, the implementation of Vision 2030 has been accompanied by a threefold political, social and economic revolution.
“We have witnessed a shift in the Kingdom on a social level, due to carrying out multiple internal reforms, particularly benefiting women. At the same time, the crown prince put into practice a new national narrative, that of a Saudi Arabia reconciled with its past, a modern Saudi Arabia that is open to the world … an ambitious approach with Saudi youth, 70 percent of the country, embracing this new identity.”
During the panel discussion “Sharing views on 2030” Suliman Al-Mazroua, CEO of the Kingdom’s National Industrial Development and Logistics Program, highlighted the convergence of national strategies and the potential value of Saudi-French partnerships, and with Gulf states more generally.
Laurent Saint Martin, the CEO of Business France, said it was important to build bridges.
Martin said: “In times of uncertainty, it is more important than ever to build bridges and partnerships. We are here because we are all keen on building upon our synergies across all sectors of activity.
“To our friends and partners from the GCC, I want to say this: The French companies gathered here represent the best we can offer in all sectors.
“To the French CEOs present today, if you want to do business with GCC partners there is no time to waste. Gulf countries are moving forward and upward at breathtaking pace.”
Saudi Arabia establishes logistics zone in Djibouti to expand economic presence in Africa
RIYADH: Saudi Arabia has signed a deal to establish a logistics zone in the port of Djibouti, leveraging Africa’s gateway to propel the Kingdom’s products and exports, fostering economic interplay.
During a delegation visit of Saudi investors to the capital city of the East African country, the contract was signed by Hassan Al-Huwaizi, president of the Federation of Saudi Chambers, and Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zones Authority.
Under the leadership of Al-Huwaizi, the delegation, including over 100 entrepreneurs and government representatives, came together to advance this transformative initiative.
The 92-year contract for the logistics zone, spanning an expansive area of 120,000 sq. m. in its inaugural phase, underscores a pivotal milestone in Saudi-Djibouti economic relations.
The Saudi logistics city, serving as a nexus for commerce and innovation, is positioned to strengthen the Kingdom’s economic presence across the African continent, as reported by the Saudi Press Agency.
Djibouti’s port, strategically located as Africa’s gateway, facilitates the expansion of Saudi products and exports into new markets, promoting robust economic interplay.
Simultaneously, the Saudi-Djibouti Business Forum, attended by over 300 stakeholders, unveiled a range of investment opportunities, highlighting Djibouti’s appeal as a free zone.
In return, Djibouti authorities have promised equal treatment for Saudi investors, guaranteeing fair opportunities across sectors, from renewable energy to technology.
This collaborative effort emphasizes a steadfast commitment to fostering lasting economic cooperation between the two nations.
In February, Djibouti’s president reaffirmed his country’s dedication to promoting maritime security in the Red Sea.
Ismail Omar Guelleh noted that the East African nation was collaborating with major powers, including Saudi Arabia, to ensure safe passage for international shipping in the Bab El-Mandeb and the Gulf of Aden.
He emphasized that Djibouti’s strategic position made it a key player in facilitating global trade, mentioning cooperation with nations such as the US, France, the UK, and Red Sea coastal states, especially Saudi Arabia, in counterterrorism efforts and maritime security.
Guelleh had underscored Djibouti’s longstanding ties with Saudi Arabia, dating back to 1977 when his country gained independence.
The president added that Djibouti aimed to further enhance collaboration with Saudi Arabia, especially in maritime transport, logistics, and port services, building on significant progress in port development.
Food and clothing sectors drive POS weekly spending to hit $4bn
RIYADH: Saudi Arabia’s point-of-sale spending reached SR15.22 billion ($4.05 billion) from May 26 to June 1, official figures showed.
The latest data from the Saudi Central Bank, also known as SAMA, revealed that spending on food and beverages, which accounts for the largest share at 15.7 percent, saw a 43.8 percent surge, reaching SR2.40 billion, during this week.
Meanwhile, transactions at restaurants and cafes, which held a 13.6 percent share, increased by 26.2 percent, amounting to SR2.07 billion.
Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 37.5 percent increase that week, reaching SR1.87 billion.
Despite composing only 1.5 percent of the week’s overall POS value, spending on education recorded a major increase of 55.8 percent to SR237.5 million.
In the past few years, this sector has been allocated the largest share of government expenditure in comparison to other divisions of the economy.
Efforts are underway to revamp the education system, aiming to equip the national workforce with the necessary skills to thrive in an ever more technology- and information-centric global economy.
The clothing and footwear sector experienced the largest increase in POS transaction value, surging by 56.8 percent to SR999.08 million.
On the other hand, the telecommunication field witnessed the second-largest surge, with 56.4 percent, reaching SR148.6 million.
According to data from SAMA, 33.1 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR5.04 billion, representing a 27.1 percent increase from the previous week.
Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.
Spending in Jeddah followed, accounting for 13.5 percent of the total and reaching SR2.06 billion, marking a 28.7 percent weekly positive change.
The two cities that registered the highest surges in POS spending were Hail and Tabuk, with increases of 56.6 percent and 55.1 percent, respectively.
The value of transactions in Hail reached SR260.84 million, while in Tabuk it was SR329.63 million.
Oman Investment Authority’s assets surge to hit $49.9bn in 2023
RIYADH: Total assets of Oman’s sovereign wealth fund increased by an estimated 7.4 percent year on year to reach 19.24 billion Omani rials ($49.9 billion) in 2023, according to new figures.
A report issued by the Oman Investment Authority revealed that the return on investment for 2023 stood at 9.95 percent, the body said in a post on X.
The rise in numbers underscores the authority’s role in driving economic growth and stability within the Middle Eastern country.
Moreover, the robust performance reflects the OIA’s strategic investment approach and effective management of its diverse portfolio.
This aligns with the authority’s objective to manage and develop the country’s funds and assets, achieve financial reserves, and implement government policies to advance the targeted economic sectors.
During its media meeting on Tuesday in Muscat, the entity confirmed that it will continue supplying the state’s general budget with amounts exceeding 6 billion rials from 2016 until the end of 2023.
The post also revealed that the OIA aims to diversify its new foreign and local investments both geographically and across various sectors.
Additionally, it plans to connect some foreign investments to targeted local industries by transferring technology and modern techniques.
The authority also clarified that the private markets sector of the Al-Ajyal portfolio, which manages the OIA’s investments abroad, has invested in 13 global funds operating in multiple sectors. This comes in addition to its entry into various direct investments.
It further indicated that the public markets sector of the Al-Ajyal portfolio continues to invest in a number of countries around the world, achieving an average return of 9.8 percent, therefore exceeding the target rate of 5 percent.
The authority listed Electric Hydrogen, the Australian company Hysata, and the American firm Our Next Energy, as well as the Platinum investment fund, the Global Infrastructure Fund, and the Chinese Fund, as its most prominent direct foreign investments.
In August 2023, Finance Minister Sultan bin Salim Al-Habsi, also the chairman of the authority, said: “OIA is not immune to the impact of world events, but they did not pose an obstacle to our ongoing journey toward growing Oman’s economy and achieving financial sustainability.”
Closing bell: Saudi main index loses 196 points to close at 11,612
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 196.22 points or 1.66 percent, to close at 11,612.03.
The total trading turnover of the benchmark index was SR7.08 billion ($1.89 billion), with 28 of the listed stocks advancing and 198 declining.
Similarly, Saudi Arabia’s parallel market Nomu also slipped by 530.84 points to close at 26,033.02, while the MSCI Tadawul Index shed 23.96 points to end the trading at 1,453.42.
The best-performing stock of the day was SAL Saudi Logistics Services Co., whose share price soared by 2.74 percent to SR270.40.
Other top performers of the day were Middle East Healthcare Co. and Tanmiah Food Co., whose share prices surged by 2.53 percent and 2.46 percent, respectively.
The worst performer of the day was Al-Baha Investment and Development Co., with its share price edging down 7.14 percent to SR0.13.
The top-performing stocks on the parallel market were Knowledge Net Co. and Miral Dental Clinics Co., whose share prices soared by 9.51 percent and 8.68 percent, respectively.
On the announcements front, Thimar Development Holding Co. approved the company’s board of directors’ recommendation to cut capital by 74 percent from SR250 million to SR65 million.
In a Tadawul statement, the company said that the capital reduction would not affect Thimar’s obligations, operations, financial or operational performance, and regulatory compliance.
Thimar added that the capital reduction would also not alter any shareholder’s stake.
Meanwhile, Saudi Advanced Industries Co. said it signed a non-binding memorandum of understanding to acquire all of Dar Al Balad Business Solutions Co. shares, including its rights and obligations.
In a Tadawul statement, the company noted that the acquisition is within the framework of the company’s long-term strategy for continued growth and sustainability.
Additionally, Kingdom Holding Co.’s shareholders approved its board of directors’ recommendation to pay a 2.8 percent cash dividend, or SR0.28 per share, from retained earnings for 2024.
