ARAB NEWS: The UAE’s tourism and real estate sectors could receive a boost from the speed of the country's vaccination program, said a new report.
Normalization of ties with Qatar and Israel could also support investment according to a report from S&P Global Ratings.
The United Arab Emirates (UAE) is reportedly leading the vaccination effort in the region, with the immunization rate at 55 percent to 60 percent of the population, the second highest globally,” S&P said in a report on Monday. “High vaccination rates could help the UAE’s tourism sector recover earlier than others.”
The ratings agency expects economic growth in Dubai to recover this year from the sharp recession of 2020 triggered by the twin blow of the pandemic and low oil prices.
“However, we expect real estate companies’ profitability to remain under pressure and leverage to be high,” said S&P Global Ratings credit analyst Sapna Jagtiani. “Absent a substantial recovery in revenue, companies are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash flows. Rated Dubai-based real estate companies still have good liquidity and access to funding, however, despite currently trying times.”
Last year, Dubai saw the sharpest population decline in the Gulf Cooperation Council (GCC) - dropping by 8.4 percent versus the region average of 4 percent, S&P said.
World’s second highest immunization rate to help Dubai tourism bounce back quicker: S&P
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World’s second highest immunization rate to help Dubai tourism bounce back quicker: S&P
- The UAE is reportedly leading the vaccination effort in the region
Saudi stock market opens its doors to foreign investors
RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.
The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.
According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.
“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”
In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country.
This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
