DUBAI: The buzz that surrounded the three-day Cityscape Global property exhibition in Dubai this week belied a market still suffering from expat job losses and investor uncertainty.
While property investors hope for an Expo 2020-related rebound, prices remain weak.
Still, the prospect of a further weakening of the dollar may provide a silver lining to the clouds that hang over the market.
The US dollar, to which the UAE dirham is pegged, has lost about 7 percent against the euro in the last three months, while it is about 4 percent down on the pound over the same period.
“Though slow economic growth in the region and continued new supply may keep a lid on capital price appreciation, new activity arising from events such as Expo 2020 may provide a floor for price depression,” said Anita Yadav, Head of Fixed Income Research at Emirates NBD. “The slowing economy has led to lower job creation and lower immigration of expats into the region,” she added.
Similarly, the relatively strong US dollar, while losing some ground in recent months, has made property purchases expensive for many overseas buyers.
Dubai residential property prices and rents are set to fall further this year as losses of high-paying jobs and dwindling household incomes boost vacancy rates, according to Phidar Advisory, a real estate consultancy, in a report published in April.
“Sales volumes of completed properties are at a six-year low and vacancies are rising across the city,” the report said.
Prices of single-family homes, known locally as villas, slid 10.2 percent on average over the past 12 months, while apartment values remained unchanged. Villa rents dropped 4.9 percent while apartment leases fell 3.4 percent in the period.
Still, positive signs are emerging on the buyers’ side of the market from the UK, India and Pakistan as their currencies gain ground against the dollar.
Analysts said this may explain a slight improvement in apartment sales volumes.
Dubai resident Faraz Waqar feels the time is not yet right to buy a home. He had even thought about selling a property he owns in Pakistan so that he could buy in Dubai — but the experience of his friends changed his mind.
“Some of them invested and have lost around 30 percent on the value of their property so far in the last couple of years. So I am happy with the current scenario — that I stayed away from property investments in Dubai,” said the marketing professional.
Salman Hameed, who has in the past invested in Dubai, is now having second thoughts. “It’s all a matter of supply and demand. Too much supply reduces the investment appeal,” he said.
But beyond this basic economic equation, the emirate still offers many positives to investors that are hard to find elsewhere in a volatile region.
“This attracts end users who want to make Dubai their home and want to save on rent. But for the speculators, I don’t think Dubai offers a good opportunity anymore. They are better off investing in their own countries,” said the Pakistani medical practitioner who has been living in the city for over a decade.
The models of outlandish projects which have become a hallmark of the show over the years were in plentiful supply, such as a floating home with a basement from which to observe passing marine life. However, despite such attractions, the sales agents appeared almost to outnumber the visitors around some stands.
This did not prevent some of those visitors sounding upbeat about the property market before the exhibition ended on Wednesday.
Fahd Dawood, a real estate consultant based in Dubai, believes that investors continue to have faith in Dubai’s market.
“I was not expecting that this year’s Cityscape Global was going to be that busy, with genuine buyers around,” said Dawood, noting that direct property sales had returned to the halls of the exhibition after being prohibited for a number of years following a return of rampant speculation.
Data from the Dubai Land Department (DLD) revealed the list of nationalities that formed the bulk of buyers in the period between January 2016 and June 2017.
Emiratis made close to 12,000 investment transactions worth 37.4 billion dirhams ($10.2 billion), while Indian, Pakistani, Saudi Arabian and British investors ranked second, third, fourth and fifth respectively.
Saudis led the Gulf nations with 5,366 transactions worth 12.5 billion dirhams and UK citizens took top spot among the European nationalities with 4,188 transactions worth 9 billion dirhams.
Dubai property investors look to Expo 2020 as job losses detract from Cityscape buzz
Dubai property investors look to Expo 2020 as job losses detract from Cityscape buzz
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Startup Wrap — Proptech leads startup investment in region as sector sees funding drop
RIYADH: Saudi Arabia’s real estate tech platform Ejari secured the largest startup investment across the Middle East and North Africa in October as the region faced a funding slowdown.
The firm benefited from a $14.65 million seed financing round led by PFG and BECO Capital, underscoring the importance of early-stage investments.
This success came against a backdrop of a funding fall for the MENA region, which saw $134 million secured across 56 deals.
This represented a 52 percent month-on-month decline and a 13 percent decrease from the same period last year, indicating ongoing challenges in the region’s investment climate, according to Wamda’s monthly report.
Debt financing played a notable role, accounting for $28.4 million, or 21 percent of the total amount.
UAE-based startups led the region, raising $61.8 million across 15 deals, while Saudi Arabia followed closely with $50 million raised across 21 transactions.
Kuwait’s position was boosted by property technology firm Sakan’s $12 million round, contributing to a total of $13.5 million secured by Kuwaiti entrepreneurs.
The Egyptian startup scene struggled, with only eight startups raising a combined $1.6 million, highlighting a sharp downturn.
Meanwhile, Tunisian and Qatari startups performed comparatively well, securing $3 million and $2.7 million, respectively.
Fintech, which had dominated the region’s funding landscape earlier in the year, fell to second place in October.
Proptech took the lead, attracting $38 million over five deals.
The e-commerce sector raised $14.6 million, while education technology startups secured $11 million across seven deals.
Investor preference leaned toward early-stage startups, with seed funding accounting for $40 million, or 30 percent of the total raised.
Series A investments reached $20 million across three deals, and pre-seed funding contributed $15.5 million. Notably, nine startups secured $25.8 million without disclosing their stage.
The business-to-consumer model was the favored choice, garnering $83.8 million across 19 startups, while business-to-business ventures attracted $42.4 million over 27 deals.
Ten startups operating a hybrid model received nearly $8 million.
Female-founded firms saw an encouraging rise, collectively raising $10.5 million across four transactions.
However, male-founded startups continued to dominate, securing $115 million across 31 deals.
Saudi open banking startup Lean closes $67.5m in series B round
Lean Technologies, a Saudi-based open banking platform, has raised $67.5 million in a series B funding round led by US-based General Catalyst.
This round marks one of the largest equity investments by a US venture capital firm in Saudi Arabia’s fintech sector. Other participants included Bain Capital Ventures, Duquesne Family Office, and Arbor Ventures.
Founded in 2019 by Hisham Al-Falih, Ashu Gupta, and Aditya Sarkar, Lean provides businesses with access to bank data and payment solutions.
The company, regulated by the Abu Dhabi Global Market, claims it has processed over $2 billion in transactions through its account-to-account payment offerings, serving clients like e&, DAMAC, and Careem.
In Saudi Arabia, Lean’s launch of data services under the Saudi Central Bank’s regulatory sandbox has facilitated nearly 1 million bank account verifications, supporting clients in sectors such as insurance, lending, and e-commerce, including companies like Tawuniya, Abdul Latif Jameel Finance, and Salla, as well as Tabby, and Tamara.
Al-Falih, CEO of Lean Technologies, stated that the funding will be used to expand Lean’s product offerings and support its growth strategy across the Middle East.
“Our aim is to enhance the financial ecosystem by providing accessible solutions that meet the needs of businesses and consumers alike,” Al-Falih said.
Neeraj Arora, managing director at General Catalyst, said: “Lean has demonstrated a strong commitment to solving local market needs and has earned significant customer loyalty. We see Lean as a key player in building the infrastructure needed for the region’s fintech growth.”
The new funding is expected to bolster Lean’s pay-by-bank and open banking solutions, allowing the company to scale operations and deepen its market presence in the region.
UnifyApps secures $20m to fuel ME expansion
UAE-based Software-as-a-Service solutions provider UnifyApps has closed a $20 million series A funding round led by Iconiq Growth, with participation from Elevation Capital.
The round brings UnifyApps’ total funding to $31 million since its inception in 2023. The company, co-founded by Pavitar Singh, Abhishek Khurana, focuses on automating enterprise workflows across multiple applications.
“UnifyApps understands that you need a holistic approach to achieve trusted, effective AI agents,” said Matt Jacobson, general partner at Iconiq Growth.
“By aligning every data source and application to an enterprise use, they are enabling AI to actually understand and orchestrate work,” he added.
Pavitar Singh, CEO of UnifyApps, emphasized the strategic value of the new partnership: “UnifyApps is deeply grateful for the opportunity to work with Iconiq Growth. Their deep network and partnership will be instrumental in our next stage of growth as we bring our AI agent platform to enterprises everywhere.”
UAE’s Epik Foods raises $15.5m
Epik Foods, a UAE-based food and beverage group, has raised $15.5 million in private capital funding from Ruya Private Capital I, LP, a fund managed by Ruya Partners.
The funding will be used for acquisitions, working capital, and supporting the company’s expansion plans, particularly into Saudi Arabia, as well as strengthening its presence in the UAE.
Established by Khaled Fadly and Ranya Basyuni, Epik Foods was formed in 2023 following a merger of three F&B entities – KR&CO, Sweetheart Kitchen, and Happy Platters Kitchens – in partnership with Gulf Islamic Investments, a Shariah-compliant global investment firm which manages over $4.5 billion in assets.
Epik Foods currently oversees a portfolio of 60 food and beverage brands operating across 50 locations in the UAE and Saudi Arabia, with an additional 20 outlets slated to open as part of its ongoing expansion strategy.
Efreshli advances interior design tech with new funding round
Egyptian interior design startup Efreshli has raised an undisclosed amount in its latest seed round, led by Algebra Ventures.
The round also saw participation from 500 Startups, Dar Ventures, and various angel investors.
Founded in 2019 by Heba El-Gabaly, Efreshli leverages virtual decor tools to help customers visualize room setups before making purchases.
CEO El-Gabaly expressed optimism about the company’s growth trajectory, saying: “I’m excited about this significant milestone for Efreshli. With new funding and with Dina El-Haddad joining as co-founder and CPO (chief product officer), we can accelerate our tech-driven growth and take Efreshli to new heights.”
El-Haddad added: “I’m thrilled to be part of Efreshli’s journey to revolutionize the home furnishing experience. Efreshli’s future is more than just furniture; it’s about building an entire ecosystem. With innovations like Efreshli Pro, we’re connecting the dots for everyone, from customers to designers.”
The new funding will be directed toward enhancing Efreshli’s offerings and expanding its product line, reinforcing its mission to make interior design accessible across the region.
Yemen and Iraq lead call for more crisis finance
BAKU: A group of conflict-affected countries led by Iraq and Yemen is pushing at the COP29 climate talks to double financial aid to more than $20 billion a year to combat the natural disaster and security crises they face.
States mired in conflict or its aftermath have struggled to access private investment, because they are seen as too risky. That means UN funds are even more critical to their people, many of whom have been displaced by war and weather.
In response, the COP29 Azerbaijan presidency on Friday launched launch a new “Network of Climate-vulnerable Countries,” including Iraq, Yemen, Burundi, Chad, Sierra Leone, Somalia and Timor-Leste. They all belong to the g7+, an intergovernmental group of fragile countries that first sent the appeal.
The network aims to advocate as a group with climate finance institutions, build capacity in member states so they can absorb more finance, and create country platforms so investors can more easily find high-impact projects in which to invest, said think tank ODI Global, which helped the countries create the network.
“My hope is it will create a real platform for the countries in need,” said Abdullahi Khalif, chief climate negotiator for Somalia.
Half of UK businesses impacted by Middle East conflict
- British Chambers of Commerce survey shows companies faced increased costs, shipping disruption
LONDON: Half of British businesses say they have been affected by the conflict in the Middle East, according to a survey from the British Chambers of Commerce.
The findings show that on top of the devastating human impact of the fighting in Gaza and Lebanon, the economic repercussions are being felt around the world.
Houthi militants in Yemen began attacking shipping in the Red Sea shortly after the Oct. 7 Hamas attacks sparked Israel’s war on Gaza.
The militants claim they are targeting ships linked to Israel and its allies in solidarity with Palestinians. The result has been a huge reduction in traffic through one of the world’s busiest maritime trade routes.
The BCC said shipping container rates have risen sharply since the conflict began. The cost of shipping a 40-ft (12-meter) container from Shanghai to Rotterdam has risen from just over $1,000 at the start of the conflict to just under $4,000 now. Prices peaked at more than $8,000 in July.
Most shipping companies operating between Asia and Europe have opted to send vessels around the longer Cape Horn route rather than through the Red Sea and Suez Canal.
In the survey of about 650 businesses published this week by the BCC’s Insights Unit, UK firms said the conflict had led to increased costs, shipping disruption and delays, and uncertainty over oil prices.
Half of those asked said the conflict had affected them, compared to just over a quarter in a similar survey in October 2023. This suggests more businesses worldwide have been affected by the fighting the longer it has gone on.
William Bain, the BCC’s head of trade policy, said: “Alongside the grim human impact of the ongoing conflict in the Middle East, the situation continues to have economic reverberations around the world.
“The effect on businesses here in the UK has continued to ratchet up the longer the fighting has continued.
“If the current situation persists, then it becomes more likely that the cost pressures will build further.”
Economists have warned that while the effects on the global economy have so far been largely limited to shipping costs and delays, further escalation could have a much wider impact.
The biggest concern would be a disruption to oil and gas supplies that would lead to a surge in global energy prices, fueling inflation.
COP29 unveils Baku Call initiative to bridge climate finance and peace for vulnerable communities
- Elshad Iskandarov highlighted the 450 million people who live in regions simultaneously impacted by conflict and climate vulnerability
BAKU: The world’s most vulnerable communities stand at the heart of the newly launched “Baku Call on Climate Action for Peace, Relief, and Recovery,” unveiled on Friday at COP29.
The initiative addresses the urgent need to tackle the interconnected challenges of climate change, conflict and humanitarian crises.
Backed by key nations from both the Global North and South — including Egypt, Italy, Germany, Uganda, the UAE and the UK — it introduces the Baku Climate and Peace Action Hub as a platform for driving peace-sensitive climate actions and unlocking vital financial support for affected regions.
Speaking to Arab News, Ambassador Elshad Iskandarov of the COP29 Presidency articulated the stakes clearly, pointing to the 450 million people who live in regions simultaneously impacted by conflict and climate vulnerability.
“These compounded crises not only strain existing resources but also hinder the effective delivery of climate finance,” he said.
The Baku Call seeks to address this by providing a centralized mechanism to coordinate efforts across stakeholders — governments, UN agencies, think tanks and peace-building organizations. “The hub will serve as a unified entry point for vulnerable nations, ensuring streamlined access to climate finance and technical support,” he said.
The initiative builds on established frameworks such as COP27’s Climate Responses for Sustaining Peace and COP28’s Declaration on Climate, Relief, Recovery, and Peace, while adding practical innovations.
Iskandarov highlighted a digital portal in development that will provide a clear overview of existing climate finance mechanisms, application requirements and best practices.
“Imagine a country facing daily challenges of conflict, development and climate impact. Without proper guidance, navigating six to nine funding channels becomes nearly impossible,” he said. The portal aims to close this gap by strengthening national capacities and offering tools to access and manage climate funding effectively.
A central focus of the initiative lies in developing pilot projects tailored to conflict-affected areas, where conventional funding approaches often fall short. “In regions with strong non-state violent actors, we must ensure that funds reach the communities in need without falling into the wrong hands,” Iskandarov said.
To achieve this, the hub will facilitate close collaboration with UN agencies and local communities, designing projects that integrate peacebuilding goals and adhere to stringent oversight standards.
Partnerships have been instrumental in shaping the initiative. The ambassador commended the co-lead nations for their shared commitment to inclusivity and cooperation, noting how countries such as the UAE, Egypt and the UK brought their experiences as prior COP hosts to strengthen the effort.
“This is not about initiative nationalism,” he said. “We’ve drawn lessons from the pandemic, where global unity was key, and applied them to forge a collaborative approach to the climate and peace nexus.”
The Baku Call also seeks to shift the broader narrative around climate and peace. Iskandarov expressed a long-term vision where this intersection is no longer synonymous with crisis and destruction but instead embodies hope and development. “Our ultimate goal is to create a future where the nexus of climate and peace signifies resilience and harmony, not despair,” he said.
Gulf’s record FDI inflows growing the pie for all, says Bahrain’s economic strategy chief
MANAMA: Gulf countries’ success in attracting foreign investments is a win-win for the region, a senior business strategy expert has told Arab News.
In an interview on the second day of the Bahrain International Airshow, Nada Al-Saeed, chief of strategy at the Bahrain Economic Development Board, described the Middle East’s growing ability to attract funding as “fantastic,” noting that it brings greater attention to the region.
In 2023, Saudi Arabia secured foreign direct investment inflows of SR96 billion ($25.6 billion), 16 percent higher than its target amount, while Bahrain received a record $1.7 billion over the same period, marking an 55 percent annual increase.
“When Saudi Arabia or the UAE does very well, it means that we could also benefit from that. I think that we often see the region as very competitive. I like to see it as a very collaborative and I think that everybody could benefit. If the pie gets larger, each individual’s share will also get larger.” she said.
Reflecting on Bahrain’s FDI increase, Al-Saeed said that figure relates to the Economic Development Board’s achievements.
“If we are looking at the foreign direct investments’ statistics and results, we will see Bahrain actually attracted a much larger number than that, but this represents a record number for the EDB,” she said.
Al-Saeed noted that funding secured in 2023 went to investment projects across all of Bahrain’s priority sectors, which include financial services, communication and technology, and manufacturing, as well as logistics and tourism,
“These are the key priority non-oil sectors identified by the government, and they are the focus of the EDB. The board has dedicated teams for each sector to promote and attract investments in these areas,” she said.
She also said that these projects have contributed to job creation in the country, and she expected this investment trend to continue.
Explaining how her organization’s strategy aligns with the country’s economic vision for 2030, Al-Saeed said that the EDB, as the nation’s investment promotion agency, works very closely with a wider ecosystem of stakeholders known as “Team Bahrain.”
This group has tailored its investment promotion strategies to mirror the government’s national economic plans.
“Back in October 2021, the government launched the economic recovery plan where it identified key priority sectors, and the EDB aligned to that in order to ensure that we operate as a cohesive unit, and we are able to attract the right investments that will further stimulate the development and growth of our country,” the chief officer said.
Discussing the unique advantages Bahrain offers, Al-Saeed highlighted the country’s success over the past decades in attracting regional investors that now play a vital role in the nation’s economy.
“If we look at our foreign direct investment statistics, we will see the majority of our foreign investments come from the GCC region, and that is predominantly in the financial services sector, and this is a trend that we have seen since the 70s, where Bahrain managed to attract a lot of regional capital in the financial services sector from Saudi Arabia, Kuwait, the UAE, and others, of course.” she said.
“There are many advantages because we treat GCC investors like Bahrainis when it comes to the processes of establishing business activities,” Al-Saeed added.
In addition, Bahrain has a wide range of incentives that are offered to investors.
One of these is the work of the country's labor fund, Tamkeen, which offers businesses the opportunity to support hiring local talent, as well as training and upskilling them to meet the needs of those companies.
Al-Saeed highlighted recent regulatory changes aimed at making Bahrain more attractive to global businesses and startups, and emphasized that significant efforts have been made to ensure the state remains both competitive and conducive to investments and business growth.
“Maybe one of the key, or most recent initiatives that is worth highlighting, is the Golden License program that was launched back in April 2023, which aims to provide streamlined services to strategic investment projects that are valued at $50 million or that creates 500 jobs here in Bahrain,” she said.
The chief officer added that through this initiative, projects and companies can benefit from expedited services when it comes to getting approvals, licenses or even access to decision makers.
“This has been very instrumental in terms of ensuring that we provide high-class services to investors,” said Al-Saeed, noting that nine projects have been granted Golden License status since the initiative was launched.
She further said that the total of those projects is valued at $2.4 billion, with investors coming from various sectors and different regional and global countries, including Bahrain.
In response to a question about the role of the aviation sector in the EDB’s investment strategy, Al-Saeed stated that it helps create a conducive investment environment, as it is what connects Bahrain with the rest of the world.
“This is not just in terms of the movement of people but also in transporting goods and service through air cargo. So, it is very important; as we do not target just the market that is within our geographic boundaries, but we aim to serve a much wider area and catchment area,” she said.
