UAE's Overseas Investments Rise with Total Assets at $2.5T, Says UAEIIC Secretary-General
31 Mar 2024 Written by Admin AdminThe UAE has witnessed a significant increase in its overseas investments, with the total assets managed by the UAE International Investors Council (UAEIIC) reaching $2.5 trillion. This surge in overseas investments reflects the UAE's growing presence in the global economy and its strategic approach to diversifying investment portfolios.
UAE International Investors Council (UAEIIC)
The UAEIIC plays a pivotal role in managing the UAE's overseas investments, providing strategic guidance, risk management, and investment opportunities for UAE-based investors. The council focuses on enhancing the UAE's international investment footprint and fostering economic growth through diversified investment strategies.
Total Assets and Investments
The UAEIIC manages a substantial portfolio of assets totaling $2.5 trillion, spread across various sectors and regions globally. The council's investments encompass a diverse range of industries, including technology, real estate, infrastructure, and emerging markets, reflecting a balanced and strategic approach to portfolio management.
Factors Driving Overseas Investments
Several factors have contributed to the rise in UAE's overseas investments, including favorable economic conditions, political stability, and strategic partnerships with key global players. The UAE's proactive investment strategy, coupled with a focus on long-term growth and risk management, has positioned the country as a prominent player in the international investment landscape.
Investment Strategies
The UAEIIC employs a range of investment strategies to optimize returns, mitigate risks, and capitalize on emerging opportunities in global markets. Diversification across sectors and regions, active portfolio management, and a focus on sustainable growth are key pillars of the council's investment approach, ensuring resilience and long-term value creation.
Key Sectors and Regions
The UAEIIC targets key sectors and regions for investments based on market trends, growth potential, and strategic alignment with the UAE's economic priorities. Emerging markets, technology-driven industries, real estate developments, and infrastructure projects are among the focus areas for the council, reflecting a forward-thinking and diversified investment strategy.
Impact on the UAE Economy
The surge in overseas investments has had a positive impact on the UAE economy, contributing to economic growth, job creation, and sectoral diversification. The influx of capital from overseas investments has bolstered the country's position as a global investment hub and facilitated the development of strategic partnerships and business collaborations on an international scale.
Global Investment Trends
UAE's investment trends align with global patterns, reflecting a strategic approach to capital deployment, risk management, and market opportunities. The country's investments in diverse sectors and regions mirror international investment strategies, demonstrating a keen understanding of market dynamics and a proactive stance in navigating global economic trends.
Challenges and Opportunities
While UAE investors face challenges in overseas markets, such as regulatory complexities, market volatility, and geopolitical risks, they also encounter opportunities for growth, expansion, and strategic partnerships. By leveraging its expertise, resources, and network of connections, the UAE is well-positioned to capitalize on emerging opportunities and navigate challenges in the global investment landscape.
Government Support and Policies
The UAE government plays a crucial role in supporting overseas investments through policies, incentives, and initiatives that facilitate investment activities and promote economic growth. By creating a conducive regulatory environment, offering financial incentives, and fostering a culture of innovation and entrepreneurship, the government encourages UAE investors to explore new markets and expand their global footprint.
Industry Response and Stakeholder Perspectives
Industry stakeholders have responded positively to the rise in UAE's overseas investments, recognizing the country's strategic vision, investment acumen, and global impact. Investors, analysts, and business leaders view the UAE's increasing presence in international markets as a testament to its economic strength, resilience, and commitment to sustainable growth.
Future Outlook
Looking ahead, the future of UAE's overseas investments appears promising, with opportunities for continued growth, expansion, and strategic partnerships on a global scale. By leveraging its financial resources, expertise, and market insights, the UAE is poised to navigate evolving market dynamics, capitalize on emerging trends, and solidify its position as a key player in the global investment landscape.
The rise in UAE's overseas investments, with total assets at $2.5 trillion managed by the UAEIIC, underscores the country's strategic approach to international investment and economic diversification. By fostering a culture of innovation, embracing global opportunities, and leveraging its financial capabilities, the UAE is well-positioned to drive economic growth, create value for investors, and shape the future of the global economy.
Startups in the MENA region raise $101 million in funding in August 2023
17 Sep 2023 Written by Admin AdminStartups in the Middle East and North Africa succeeded in raising more than $101 million in August, an increase of 6% over the previous month, and a year-on-year increase of more than 73%.
The recent increase in the number of financing startups in the region comes in light of the relative decline and fluctuation in the volume of financing witnessed in financing startups in the region since last year. The value of startups' deals was divided into 26 deals.
Distribution of startup financing by country
Start-up companies topped the list of funding with about $54 million, distributed among 8 companies, noting that more than half of the funding ($27 million) went to the “Rawaa Inventory Management” company deal, and “Fly Akeed” travel technology services company also succeeded in raising $15.2 million. Million dollars.
Emirati startups came in second place, with a total funding of about $44 million distributed among 9 startups.
In continuation of the decline in the volume of financing for Egyptian startups, it came in third place, with a total financing not exceeding $1.5 million distributed over 5 financing deals, which represents a decrease of more than 406% compared to last month. Note that the number of financing deals for Egyptian start-ups for the month of August reached 5 deals, about half of which went to Talents Arena, a start-up company specializing in recruitment using artificial intelligence tools, as the size of the deal it obtained amounted to about 750 thousand US dollars.
In fourth place were Tunisian startups with a total funding of more than half a million dollars, followed by Moroccan and Palestinian startups, with a total funding of about 155 and 100 thousand dollars, respectively.
Distribution of financing for startup companies according to sectors
Although the financial technology sector was at the forefront in the volume of financing in 2022 and throughout almost all of 2023, the volume of financing deals for this sector declined in August, recording $5.9 million to occupy fourth place, noting that the financial technology sector remained..The number of financing deals reached 5 deals.
The sector that ranked first in the volume of funding for the month of August was the logistics services sector, in which startup companies raised about $32 million, equivalent to a third of the total funding for startup companies for the same period.
The logistics services sector came to the fore thanks to the previously mentioned “Rawaa Inventory Management” deal.
While the sectors of travel and tourism technology, health technology, and websites (Web3) received almost equal funding, amounting to about $15 million for each sector.
Dubai-based noqodi expands digital payments through partnership with Network
16 Aug 2023 Written by Admin AdminUnder the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels
Fintech company noqodi has collaborated with Network International to expand digital payments offering that can cover various segments beyond just government and private sector services.
The partnership will enable the Dubai-based firm to provide micro, small, and medium enterprises (MSMEs) with access to additional digital payment solutions while driving shared goal of boosting the UAE’s cashless economy, according to a press release.
Under the strategic alliance, Network will empower emaratech-owned noqodi’s existing payment channels like e-commerce, point of sale (POS), and software point of sale (SoftPOS) to accept card payments.
It will further introduce support to new unbanked segments, including retail and commerce.
General Manager at noqodi, Zahi Kallab, said: “Together with Network, and leveraging noqodi’s unique value proposition, we are committed to supporting MSMEs and simplifying their business operations with accessible and innovative digital payment solutions.”
Kallab added: “This alliance reinforces our dedication to advancing digital payments in line with Dubai’s vision of becoming a fully cashless economy.”
The fintech company is currently integrated with different banks and payment options that come under one payment platform for government and selected private merchants. This includes direct debit, online banking, and cash through partner exchange houses, besides full automation of collections, reconciliation, settlement, and transaction-related services.
Group Managing Director – Acquiring at Network, Andrew Key, said: “Digital payments are becoming more commonplace in the UAE with businesses of all sizes now shifting toward cashless transactions. Given this, there is a growing need for easily accessible innovative digital payment solutions that help simplify business operations.”
Key concluded: “Our partnership further reaffirms our commitment to boosting digital payments in the region in line with Dubai’s bid to become a fully cashless economy.”
Recently, Network joined forces with SerVme, a reservation and guest customer relationship management (CRM) platform for restaurants and hospitality operators, to endorse food and beverage (F&B) merchants in the UAE.
Source: Zawya
Dubai’s non-oil sector shows strongest growth in 10 months as PMI hits 56.9
11 Jul 2023 Written by Admin AdminDubai’s non-oil business activities witnessed its strongest growth in 10 months, driven by robust progress in the construction and tourism sector, an economy tracker showed.
According to the seasonally adjusted S&P Global UAE Purchasing Managers’ Index, Dubai’s PMI rose to 56.9 in June after easing to 55.3 in May.
“Dubai’s non-oil private sector economy enjoyed accelerating growth of new business in June, supporting another marked rise in overall output. All three of the key sectors monitored — construction, wholesale and retail and travel and tourism — registered faster increases in new work midway through the year,” said Trevor Balchin, economics director at S&P Global Market Intelligence.
According to the index, any reading above 50 indicates growth in the non-oil private sector, while readings below 50 signal contraction.
The S&P Global report revealed that the headline index remained well above its long-run trend level of 54.6, and the month-on-month rise at 1.6 percent is the highest since October 2021.
The report noted that employment also rose in June compared to previous months as companies steadily built their inventories and supply chains improved further.
Balchin added: “Strong demand led to further job creation, with the current 14-month run of growth the longest in over six years. Companies were also able to continue offering lower prices to customers despite a slightly faster rate of input price inflation during the month.”
The report pointed out that the recruitment process was mainly robust among construction firms in Dubai.
The report added that companies could continue offering lower prices to customers despite a slightly faster rate of input price inflation during the month.
However, the 12-month outlook for activity eased slightly since May but was still the second strongest since October 2021. Construction was the most optimistic of the three key sectors monitored, followed closely by wholesale and retail.
The report also noted an improvement in supply chains during June, with average lead times falling for the sixth month. Companies reported that requests for quicker deliveries had been met by suppliers, aided by the prompt payment of orders.
Real estate trends: UAE buyers rush to fix rates; cash deals are surging
14 Nov 2022 Written by Admin AdminHigher repayment rates are not yet a widespread deterrent, but budgets are affected, and some are shifting to cash or speeding up transactions to beat rate hikes
Rising interest rates are not yet a widespread deterrent for UAE mortgage customers, although some brokers have noticed rising cash transactions and a trend towards buyers moving faster to secure the lowest payments possible.
Real estate agents and mortgage brokers said that the majority of customers are now looking to fix their mortgage rates rather than remain at the mercy of further interest rate rises.
Morgan’s Realty said it had seen around 50% of mortgage home buyers taking fixed rate mortgage rates in 2021, compared with around 90% in 2022 as fixed rate deals are now averaging 4.49%.
Rates were as low as 2.39% in 2021, Morgan’s said, with customers at that point fixing their rates for three years.
Cash deals
In its most recent market report on Dubai real estate, Morgan’s reported a much higher proportion of cash transactions as the year progressed.
In Q2 2022 and Q3 2022, the agency reported 8,629 and 8,469 cash transactions and 4,801 and 5,254 mortgage transactions respectively.
In the first quarter, the figures were much closer, with 4,564 cash transactions and 4,461 mortgage transactions, the report showed.
For online mortgage broker Huspy, there has been a noticeable surge in people looking to secure mortgages as rates rise, with the most recent increase in applications being 25% month-on-month.
Sawan Karia, head of Huspy’s broker channel, said the increase could partially be attributed to its own increase in market share, but also rising interest rates.
UAE has competitive rates
UAE banks are required by the Central Bank of the UAE to revise offers based on current interest rates, said Karia, with more interest rate hikes expected before the end of 2022.
“On average, mortgage rates are at 4.5% as compared to 2.5% last year. However, the UAE still has competitive rates as compared to a number of other global property markets. Policy makers have played a positive role in balancing market stability with growing demand for property ownership,” he said.
Karia noted the difference in mortgage payments for a customer taking out a fixed rate mortgage now on an AED 2 million property compared to last year, which would be AED2,000 per month. However, the return on investment of 5-8% means buying a home is still a preferred option for those wanting a stable asset amid financial uncertainty, he said.
Rosie Patterson, Better Homes LLC’s mortgage channel partner, said mortgage applications had increased month-on-month and year-on-year, with Q3 2022 up 80% on Q2 2021 and 33% on Q2 2022.
“We have experienced banks changing rates with shorter notice than they used to. However, this is the new normal for us, and we are getting clients to understand the situation and secure properties quicker, as we know rates might change,” she said.
There has been less interest in remortgaging, Patterson said, as the rate rises impact cost effectiveness.
For mortgage consultant Graham Brown of MENA mortgage matters, affiliated to Dubai-based broker haus & haus, Q1 and Q2 2022 saw consistent applications, with a 10% QoQ increase in Q2, while Q3 decreased by 15%
Anecdotally, rate increases did start to deter some buyers from February, but rising rents convinced others into buying, he said, adding that exchange rates for the euro and pound against the dollar are also a consideration.
“The biggest barrier to entry is the cash amount required,” he said, “and of course if your funds are in GBP or EURO then they have taken a hit, which may mean that clients can’t buy at the level required.
“Some are simply reducing their budgets accordingly or waiting until there is a return to some normality. Obviously if your funds are held in US dollar then there’s been no change.”
Source: Zawya
Millionaires in Dubai, Abu Dhabi, Sharjah surge close to 100,000 in 2022
15 Sep 2022 Written by Admin AdminCities in the UAE are now among the fastest-growing wealth markets in the world due to their strong oil and gas industries, with millionaire populations in Dubai, Abu Dhabi and Sharjah jumping double digits to reach close to 100,000 this year, new data showed.
In the six months to June 30, the total number of high-net-worth individuals (HNWIs) with fortunes of at least $1 million in Dubai rose by 18% to 67,900, making the emirate on track to break into the world's top 20 wealthiest destinations by 2030, according to the latest Henley Global Citizens Report, which tracks private wealth migration trends worldwide.
In Abu Dhabi, the HNWI population jumped 16% to 23,800, while Sharjah's total number of wealthy residents went up by 20% to 3,700.
Overall, the combined HNWI population in the three cities surged to 95,400.
The report features data from global wealth intelligence firm New World Wealth. Overall, New York emerged as the wealthiest city on earth with 345,600 millionaires.
Second on the list is San Francisco Bay area, followed by London, Singapore, Los Angeles & Malibu, Chicago, Houston, Beijing and Shanghai in the top ten.
Strong oil and gas sectors
According to Andrew Amoils, Head of Research at New World Wealth, the millionaire population of Dubai is expected to break into the top 20 wealthiest cities by 2030.
"Cities with strong oil and gas industries are performing especially well this year, including the likes of Riyadh, Sharjah, Luanda, Abu Dhabi, Doha and Lagos," Amoils said.
"Others on the fastest-growing list include Lugano, a Swiss hotspot for affluent retirees, Bengaluru, the 'Silicon Valley of India' and Hangzhou, one of China's most scenic cities."
Residents with over $10 million wealth
Among Dubai's rich population, at least 3,170 are multi-millionaires with wealth of at least $10 million. The city is also home to 202 centi-millionaires with fortunes of at least $100 million, as well as 13 billionaires.
In Abu Dhabi, at least 1,120 are multi-millionaires, while 67 fall under the centi-millionaire segment. Three residents are billionaires. Sharjah accounts for 110 multi-millionaires and four centi-millionaires.
Source: Zawya
The United Arab Emirates, Saudi Arabia and Egypt were ranked the first three, respectively, in the Arab world in attracting Foreign Direct Investment (FDI) for 2021, with investments topping $45 billion.
FDI inflows to Arab countries, which rose by 42% in 2021, amounted to about $53 billion, 6.3% of which represented the total inflows to developing countries and 3.3% of the total global inflows that stood at about $1.58 trillion.
Asharq Al-Awsat obtained a copy of an annual report released by the Arab Investment and Export Credit Guarantee Corporation (Dhaman) that studied the volume of FDI in the region.It showed that the first five countries accounted for more than 96% of the total inflows.
The UAE topped the list by attracting $20.7 billion, followed by Saudi Arabia with $19.3 billion, then Egypt with $5.1 billion.
Oman came fourth with $3.6 billion, while Morocco was fifth with $2.2 billion.
Data released in the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2022 indicated that FDI balances received by Arab countries increased in late 2021 by about $53 billion, representing 5.4% compared to 2020, from $958 billion dollars to more than one trillion dollars in 2021.
The first three countries accounted for about 56.5% of the total cumulative balances. Saudi Arabia topped the Arab ranking in cumulative balances inflows with $261 billion and a share of 26% of the Arab total FDI inflows, followed by the UAE with a value of $171.6 billion and a 17% share, then Egypt with a value of $137.5 billion and 13.6% share.
Meanwhile, FDI outflows from Arab countries to various world countries rose by 46% to $52 billion.
Saudi Arabia and the UAE contributed to about 90% of these outflows, with shares amounting to 46.1% and 43.5%, respectively. Kuwait came third with 7%.
In this context, FDI balances issued by Arab countries increased by 10.2% to $543.4 billion by late 2021. The UAE, Saudi Arabia and Qatar accounted for 76.5% of the total balances, with shares amounting to 39.6%, 27.9% and 8.8%, respectively, followed by Kuwait with a 6.6% share.
In terms of cross-border merger and acquisition deals that the Arab countries concluded in 2021, the report showed that the value of sales deals in 12 Arab countries amounted to about $30 billion, with a 4.1% share of the global total value of $728 billion.
These deals were mainly focused in Saudi Arabia, Kuwait and the UAE with 81.5%, 13.6% and 5.1%, respectively.
The value of purchase deals for 12 Arab countries amounted to more than seven billion dollars, to which the UAE contributed with $6.1 billion and an 86.6% share of the total deals in the Arab region.
source: ASharq AL- Awsatwsat
Abu Dhabi’s AD Ports Group’s net profit up 41% despite global supply chain mess
16 May 2022 Written by Admin AdminAbu Dhabi’s AD Ports Group, which is owned by sovereign wealth fund ADQ, posted a 41 percent year-on-year rise in net profit for the first quarter of 2022, as the company’s core businesses rebounded from supply chain bottlenecks.
Total net profit for the period ended March 31, 2022 reached 306 million dirhams ($83 million), compared to 218 million dirhams a year ago, the company reported on Friday.
Revenue rose 15 percent year-on-year to 1.047 billion dirhams, while adjusted EBITDA jumped 34 percent to 524 million dirhams.
“The Group’s core businesses are rebounding from the supply chain disruptions of the recent period,” said Mohamed Juma Al Shamsi, Managing Director and Group CEO at AD Ports Group.
Rated A+ by S&P, AD Ports has a portfolio of 10 ports and terminals and more than 550 square kilometres of economic zones.
The company also reported a 23 percent year-on-year growth in container volumes, with Ro-Ro and cruise passenger volumes showing healthy recovery post COVID-19 disruption.
Also during the quarter, the company’s new maritime business initiatives, such as feedering, transhipment, offshore logistics and supply, as well as vessel chartering services, grew by 167 percent, contributing around 168 million dirhams to total revenue.
source: zawya
The emirate of Dubai has adopted its first law governing virtual assets and established a regulator to oversee the sector, its ruler Sheikh Mohammed Bin Rashid said on Wednesday.
The United Arab Emirates, a federation of seven emirates and the region's financial capital, has been pushing to develop virtual asset regulation to attract new forms of business as regional economic competition heats up.
Virtual assets generally encompass products including crypto currencies and NFTs, but the announcement did not specify which assets would come under the new law.
The Dubai Virtual Asset Regulation Law aims to position Dubai and the UAE as a regional and global destination for the virtual assets sector, Sheikh Mohammed said in a statement carried by state media.
The Dubai Virtual Assets Regulatory Authority will oversee the development of the business environment for virtual assets in terms of regulation, licensing and governance, he said.
The new law will apply throughout Dubai except for the state-owned financial free zone DIFC. DIFC's regulator, the Dubai Financial Services Authority (DFSA), is working on its own regulation for the virtual asset sector.
In October, DFSA released the first part which governs digital tokens, and this week launched a consultation on regulation for crypto tokens, which includes crypto currencies.
The UAE as a whole is getting closer to issuing virtual asset investment regulation, the UAE's Securities and Commodities Authority (SCA) said on Tuesday.
Source: Reuters
GCC construction machinery rental industry to hit $5.48bln by 2026
01 Jan 2022 Written by Admin AdminSome of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.
The GCC construction equipment/machinery rental market, which was valued at $3.77 billion in 2020, is poised for solid growth and is expected to reach $5.48 billion by 2026, growing at a CAGR of 6.15% over the next five years, said a report by ResearchAndMarkets.com.
The Covid-19 pandemic hindered the growth of construction machinery/equipment market across GCC region owing to shut down of manufacturing facilities and halt of investments into infrastructure sector.
However, post-pandemic, as economic activities resumed, the market expected to gain momentum during the forecast period, it stated.
Some of the major driving factors are the construction sector's growth in the region, increasing demand for cranes, and developing trends toward automation and telematics.
According to the report, the renting or leasing of construction equipment has been on the rise, owing to an effort to lower the equipment purchase and maintenance expenses.
Apart from the cost, there are also other benefits associated with renting of the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, thereby ensuring a hassle-free operation, it added.
Moreover, advancement in the rental method of construction machinery such as digital platforms is providing ease to the consumer, which is further also acting as a big factor for the growth of the construction machinery market in GCC countries.
The construction sector is witnessing growth in the GCC countries such as the UAE, Saudi Arabia, Qatar, and Bahrain, due to the arise in the construction projects related to roads, buildings, hotels, stadiums, and other infrastructure.
In recent years, renting of earth moving equipment, such excavators, motor graders and loaders are on the rise due to growing infrastructural projects related to road and highway networks in countries such as Saudi Arabia, owing to the penetration of more construction contractors in the country due to Saudi Vision 2030.
For instance, in February last year, the Saudi Crown Prince Mohammed bin Salman ordered the development of main roads in the heart of Riyadh in order to upgrade the city's transportation system.
The project objective is to transform Riyadh to be a major hub in providing sustainable transportation services as well as logistics services in the Middle East, stated the report.
The programme will work on developing junctions between Riyadh's ring roads and main routes. It will develop 400 km of the road network, by adding new roads and upgrading existing junctions.
source: zawya
