DUBAI: Dubai’s non-oil foreign trade reached 354.4 billion dirhams ($96.5 billion) in the first three months of 2021 – indicating a 10 percent increase from the same period last year.
Exports grew 25 percent to 50.5 billion dirhams while imports rose by 9 percent to 204.8 billion dirhams, state news agency WAM reported.
Re-exports reached 99 billion dirhams in the same period, growing 5.5 percent.
“This remarkable performance reflects our external trade sector’s impressive resilience and its ability to rebound and grow in the face of major international crises,” the emirate’s ruler, Sheikh Mohammed bin Rashid Al-Maktoum, said.
He attributed the growth to the emirate’s advanced infrastructure, good governance, as well as the “generous stimulus packages” launched to support businesses during the pandemic.
Dubai earlier launched a five-year economic strategy to raise external trade to 2 trillion dirhams, and leverage its potential as a global trade hub given its location.
“Furthermore, by hosting Expo 2020, ‘the world’s greatest show’, Dubai will make a significant contribution to the recovery of the global economy and help it move toward prosperity again,” Sheikh Mohammed added.
It helped that global trading activities in Dubai were not heavily affected by the health crisis, Sultan bin Sulayem, group chairman of port operator DP World, said.
“The impressive success of the vaccination campaign in the UAE has created high levels of global confidence in the country and helped Dubai add to its profile as the city with the world’s most favorable business environment,” he said.
Sulayem highlighted Dubai’s ongoing campaign to create a global logistics network through a passport system that eases international trade.
Countries such as Indonesia, Thailand, South Africa, and Brazil have joined the network, and several international shipping giants have signed up to benefit from it.
Airborne trade grew 15 percent to 179 billion dirhams, while sea trade accounted for 120 billion dirhams, recording a 3 percent increase. Land trade rose by 7 percent to 55.3 billion dirhams.
China is still Dubai’s biggest trading partner in the first three months of the year, with 44 billion dirhams worth of trade, representing a 30 percent increase.
It is followed by India at 35 billion dirhams, the US at 15.4 billion dirhams, and Saudi Arabia at 14.7 billion dirhams.
Gold topped the list of commodities in the emirate’s external trade at 63 billion dirhams, followed by telecoms, diamonds, jewelry, and vehicle trading.
Dubai’s non-oil external trade grows 10 percent in Q1
https://arab.news/6jyxw
Dubai’s non-oil external trade grows 10 percent in Q1
- Exports grew 25 percent to 50.5 billion dirhams while imports rose by 9 percent to 204.8 billion dirhams
- Gold topped the list of commodities in the emirate’s external trade at 63 billion dirhams
Saudi sports sector value to reach $22bn by 2030, driven by investments and global events
RIYADH: Saudi Arabia’s sports sector market value is projected to hit $22.4 billion by 2030, up from $8 billion, driven by a surge in investments and a growing focus on the industry.
According to the report released by SURJ Sports Investments, a company under the Public Investment Fund, the Kingdom has hosted over 100 major international events across 40 different sports since 2019.
This growth supports Vision 2030’s goal of developing the Kingdom into a global sport and entertainment hub, with Middle East and North Africa sports market revenue projected to rise from $4.79 billion in 2024 to $5.57 billion by 2029, as per data from Statista.
Major events hosted by the Kingdom include the FIFA Club World Cup, the Saudi Cup horse race, and various Formula 1 races held in Jeddah.
“These efforts culminated in December with the Kingdom officially winning the right to host the 2034 FIFA World Cup,” said Danny Townsend, the CEO of SURJ Sports Investments.
Saudi Arabia’s commitment to sports development is evident in financial investments. SURJ’s report highlighted that the sector’s contribution to the Kingdom’s gross domestic product grew from $2.4 billion in 2016 to $6.9 billion in 2019.
Annual contributions are projected to reach $16.5 billion by 2030, accounting for 1.5 percent of the national GDP. Additionally, sports investments are expected to generate over 100,000 jobs in the next decade.
Key achievements in the sector include the launch of the Professional Fighters League Middle East and North Africa, supported by SURJ Sports Investments, marking the first regional mixed martial arts league.
“This initiative opens new avenues for athletes from Saudi Arabia and the Middle East to compete in this discipline,” Townsend added.
The sector also saw a rise in infrastructure spending, with plans for $2.7 billion to develop and renovate facilities by 2028, according to the report.
The growing enthusiasm for sports among Saudi citizens has been pivotal. Participation rates in physical activities have increased, with 50 percent of the population now exercising regularly, up from 13 percent in 2015.
This shift has been supported by initiatives like the “Sports for All Federation,” which engaged over 295,000 participants in community programs in 2023 alone.
Female participation has also increased by 400 percent since 2015, and women now make up 45 percent of community sports club members. A total of 97 female coaches were registered in 2023, reflecting a 61 percent year-on-year increase.
Saudi Arabia’s investment in esports and digital gaming is another growth frontier. The country has earmarked $38 billion for the sector, with the goal of contributing $13.3 billion to the national GDP by 2030.
Hosting major events like the Esports World Cup has cemented the Kingdom’s status as a leader in the industry.
“As we approach 2025, the focus will remain on continuing efforts to achieve more accomplishments,” the CEO said.
Saudi Arabia becoming global leader in tackling labor market challenges: GLMC report
RIYADH: Saudi Arabia is emerging as a global leader in addressing labor market challenges, skill development, and workforce requalification, according to a report from the Global Labor Market Conference.
The inaugural report, issued by the conference hosted by the Kingdom’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands.
These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.
The findings align with Saudi Arabia’s Vision 2030 goals, which aim to reduce unemployment from 11.6 percent in 2017 to 7 percent by the end of the decade. The strategy focuses on developing national talent, requalifying the workforce, and driving economic diversification to solidify the Kingdom’s global competitiveness.
“Saudi Arabia has made significant strides in increasing access to education, improving quality, and promoting inclusive learning opportunities,” the report said.
The report, based on input from 14,000 participants across 14 countries, highlighted growing global concerns about workforce readiness. Over half of respondents expressed fears that their current skills could become obsolete in the near future, underlining the urgent need for upskilling to meet the demands of a rapidly changing labor market.
“Respondents, in fact, identified cognitive skills, management skills, as well as socio-emotional skills as the three most critical competencies to succeed in the current labor market.” the report stated.
The study also highlighted increasing automation as a significant threat to employment across various sectors. It emphasized the growing importance of expertise in science, technology, engineering, and mathematics for success in technology-driven industries.
Although men continue to dominate STEM-related fields, the report highlighted progress in narrowing the gender gap in some countries. “For instance, India has a female graduation rate of 26 percent, followed by Saudi Arabia at 21 percent,” it said.
The report added that these figures surpass those of European countries and the US, where rates range between 10 and 13 percent. “However, the percentage of STEM degrees obtained by women has stagnated, except in Saudi Arabia,” it stated.
The second annual Global Labor Market Conference will take place in Riyadh from Jan. 29 to 30, 2025. The event is expected to host over 5,000 attendees, including labor ministers from 40 countries, executives, international experts, and public-sector leaders from more than 50 nations.
Discussions will center on global labor market challenges and opportunities, further cementing Saudi Arabia’s leadership in workforce development.
Fitch revises Oman’s outlook to positive, downgrades Egypt’s economic outlook
RIYADH: Fitch Ratings has revised Oman’s long-term foreign currency issuer default ratings to positive from stable and affirmed the IDR at BB+, driven by the availability of fiscal tools to combat future shocks.
According to its latest report, the US-based credit rating agency said that the Gulf country’s ratings were supported by higher gross domestic product per capita, the positive impact of recent budget reforms and decreasing government debt per GDP.
While Fitch maintains a positive outlook on Oman, its IDR remains lower than that of its regional neighbors, including Saudi Arabia and the UAE. In February, Fitch affirmed the Kingdom’s IDR at A+ with a stable outlook, while the UAE received an AA- rating.
According to the rating agency, a BB rating indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. However, it also suggests that the company or entity has some financial flexibility to meet its obligations despite the increased risk.
“High dependence on oil revenue, modest financial buffers given high exposure to volatile hydrocarbon prices, and Oman’s net external debtor position weigh on the ratings,” said Fitch.
Saudi Arabia’s A+ rating indicates the Kingdom’s strong capacity to pay financial commitments and signifies low default risk.
The analysis added that Oman’s positive outlook also reflects greater confidence in the resilience of public finances and the availability of more fiscal tools to respond to shocks than in the past.
The US-based agency said the Gulf country’s overall GDP is expected to expand by 1.8 percent in 2024, driven by the growth of the non-oil economy.
“We project overall GDP growth of 1.8 percent in 2024, after 1.2 percent in 2023, supported by non-oil growth of 3.7 percent, while hydrocarbon GDP was hindered by OPEC+ quotas. Domestic consumption, robust foreign investment and tourism will maintain non-oil growth above 3 percent in 2025 and 2026,” added Fitch.
The analysis added that Oman’s budget surplus is expected to narrow to 0.7 percent of GDP in 2025 and to turn into a minor deficit of 0.2 percent in 2026, assuming that the average price of Brent oil will reach $70 per barrel next year, and $65 per barrel in 2026.
In November, Moody’s also upgraded Saudi Arabia’s long-term local and foreign currency issuer and senior unsecured ratings to Aa3 from A1.
Moody’s gives Aa3 ratings to countries with very low credit risk and the best ability to repay short-term debt.
Fitch downgrades Egypt’s economic growth prospects
In a separate report, Fitch Ratings downgraded Egypt’s economic growth outlook to 3.7 percent for the fiscal year 2024/2025, down from a previous projection of 4.2 percent, driven by disruptions in the Suez Canal.
The US-based agency added that Egypt’s economy is expected to accelerate to 5.1 percent in 2025/26, up from its previous forecast of 4.7 percent.
Fitch said that this expected economic growth is driven by the possible normalization of Red Sea navigation and a stronger performance of the services sector due to easing geopolitical risks.
In November, speaking at the Rome MED-Mediterranean Dialogues conference, Egypt’s Minister of Foreign Affairs Badr Abdelatty said that the country had incurred losses amounting to $8 billion due to a significant drop in the Suez Canal revenues.
The analysis added that the country’s economy is recovering; however, the pace is slower than previously projected.
In October, the International Monetary Fund said that Egypt’s economy is set to expand by 2.7 percent in the current fiscal year before accelerating to 4.1 percent next year.
Earlier this month, another report by Fitch Ratings said that general business and operating conditions for financial institutions in Egypt are expected to improve next year.
In that report, Fitch said that improved investor confidence and healthy foreign currency liquidity conditions are some of the major factors that could strengthen the banking sector in Egypt in 2025.
FIFA World Cup 2034 to bring positive momentum to Saudi Arabia’s stock market
RIYADH: As Saudi Arabia prepares to host the FIFA World Cup in 2034, stock market performance is expected to improve, according to a report.
In its latest analysis, SNB Capital said hosting the major event would also increase the Kingdom’s non-oil gross domestic product by 4 percent to 5 percent in the medium term, estimated between four to eight years.
The firm made this prediction after comparing the growth of the equity markets in South Africa, Russia, and Qatar when they hosted the mega football gala in 2010, 2018, and 2022, respectively.
According to the analysis, hosting the FIFA World Cup in 2034 is expected to significantly impact the Saudi economy, further accelerating the growth driven by Vision 2030 — a national program aimed at diversifying the Kingdom’s economy beyond oil dependence.
“The decision for the host is usually made roughly seven to 12 years in advance. Post announcement, equity markets generally performed well with South Africa showing the strongest return, followed by Qatar and Russia. Therefore, we expect the Saudi market to outperform emerging markets in the coming period,” said SNB Capital.
It added: “FIFA 2034 also reflects positively on the equity market, leading to positive market return, valuation expansion as well as resilience and quick recovery from any potential global market headwinds.”
In the short term, between one to four years, Saudi Arabia will have extensive infrastructure spending, including stadiums, transportation networks, and urban development.
In this period, the infrastructure and construction sectors will be the primary beneficiaries, which include steel, cables, and cement companies in the Kingdom.
In the medium term, between four to eight years, these projects will be near completion, and construction companies will benefit during this period.
In the long term, between eight to 12 years, the tourism and hospitality sectors will receive gains, while the retail industry, including discretionary retailers and car rental companies, is also poised to receive benefits.
In November, experts told Arab News that Saudi Arabia could expect a GDP boost of between $9 billion and $14 billion from the event, as well as the creation of 1.5 million new jobs and the construction of 230,000 hotel rooms developed across five host cities.
SNB Capital estimates that the total cost of hosting the World Cup in Saudi Arabia will be around $26 billion. This cost is considered relatively low, as much of the required infrastructure investment is already part of the Kingdom’s Vision 2030 plans. Additionally, hosting the World Cup follows Expo 2030, another major global event.
In the previous editions of the tournament, Qatar spent a staggering $243 billion, while expenses to host the event in South Africa came in at $7.2 billion.
Brazil’s 2014 hosting involved a spend of $19.7 billion, while Russia invested $16 billion in 2018.
Earlier this month, the bid evaluation report released by FIFA showed that Saudi Arabia is set to deliver a World Cup in 2034 that saves $450 million on costs.
The bid evaluation report added that revenue from ticket and hospitality will surpass FIFA’s baseline projections by 32 percent, or $240 million.
FIFA added that online and licensing revenue streams are forecast to outperform by $7 million, compared to baseline figures.
SNB Capital also echoed similar views and said that the World Cup is expected to improve the outlook of broadcasting and event management companies.
The analysis revealed that FIFA 2034 will boost Saudi Arabia’s tourism sector, leading to higher revenues from the industry.
The event is also expected to create permanent and temporary jobs across various sectors in the Kingdom, reducing unemployment and boosting disposable income.
“A successful hosting of the World Cup will also leave a legacy of high-quality infrastructure which will help Saudi to cater to the potential pickup in tourism demand beyond 2034,” added SNB Capital.
Oil Updates — crude retreats on demand concerns after Fed signals slower easing ahead
LONDON: Oil prices fell in Asian trade on Thursday after the US Federal Reserve signaled it would slow the pace of interest rate cuts in 2025, which could slow economic growth and reduce fuel demand.
Brent futures fell 47 cents, or 0.6 percent, to $72.92 a barrel by 8:15 a.m. Saudi Time. US West Texas Intermediate crude fell 39 cents, or 0.6 percent, to $70.19.
The declines reversed most of the benchmark contracts’ gains from Wednesday when prices settled higher as US crude stocks fell and the US Federal Reserve cut interest rates by 25 basis points as expected.
Prices weakened after US central bankers issued projections calling for two quarter-point interest rate cuts in 2025 on concerns about rising inflation. That was half a point less than they had anticipated as of September.
Lower rates decrease borrowing costs, which can boost economic growth and demand for oil.
“The demand-supply balance going into 2025 continues to look unfavorable and predictions of more than 1.0 million bpd demand growth in 2025 look stretched in our opinion. Even if OPEC+ continues to withhold production, the market may still be in surplus,” DBS Bank’s energy sector team lead Suvro Sarkar said.
Meanwhile, although demand in the first half of December rose year-on-year, volumes remained lower than expected by some analysts.
JP Morgan analysts said in a note that global oil demand growth for December so far was 700,000 barrels per day less than it had expected, and for the year-to-date, global demand had risen by 200,000 bpd less than it had forecast in November 2023.
Official data from the Energy Information Administration on Wednesday showed US crude stocks fell by 934,000 barrels in the week to Dec. 13, compared with analysts’ expectations in a Reuters poll for a 1.6 million-barrel draw.
While the drawdown was less than expected, the market found support in the data as US crude exports rose by 1.8 million bpd last week to 4.89 million bpd.
