Saudi Arabia set to welcome 300 millionaires in 2024: Henley & Partners
Updated 19 June 2024
Arab News
RIYADH: As many as 300 millionaires will flock to Saudi Arabia in 2024 as the Kingdom continues to attract high-net-worth individuals, according to a study.
In its latest report, Henley & Partners said that Saudi Arabia’s capital Riyadh as well as Jeddah are becoming “increasingly popular” with immigrant millionaires,especially from North Africa and the Middle East.
“In our view, these two cities have the potential to mimic Dubai and Abu Dhabi in attracting large numbers of wealthy expats in the future,” said the British consultancy firm in the release.
According to the analysis, the UAE is continuing its run as the top destination of choice for HNWI, with an estimated 6,700 millionaires expected to make the country their home by the end of 2024.
“For the third year running, the UAE looks set to take first place as the world’s leading wealth magnet, with a record-breaking 6,700 moneyed migrants expected to make the Emirates home by the end of the year, significantly boosted by large inflows from the UK and Europe,” said the British consultancy.
According to the report, the UAE’s tax-free income, golden visa residency program, and geographic location have made it a favorite destination for migrating millionaires.
The Group Head of Private Clients at Henley & Partners, Dominic Volek, said that 2024 is shaping up to be a watershed moment in the global migration of wealth.
“An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023. As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and social upheaval, millionaires are voting with their feet in record numbers,” said Volek.
He added: “In many respects, this great millionaire migration is a leading indicator, signaling a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home.”
The UAE is followed by the US and Singapore, with 3,800 and 3,500 millionaires set to live in these countries by the end of this year.
Canada grabbed fourth place in the list, with a projected 3,200 HNWI flocking to the country, followed by Australia and Italy with 2,500 and 2,200 millionaires coming to these nations, respectively.
Switzerland came in the sixth spot in the list, with an estimated 1,500 millionaires relocating to the country, followed by Greece and Portugal at 1,200 and 800, respectively.
The report highlighted that the UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024 — second only to China worldwide and more than double the 4,200 who left the country last year.
According to the analysis, China is expected to be the biggest millionaire loser globally, with an anticipated net exit of 15,200 HNWIs this year, compared to 13,800 in 2023.
Global investors to convene for Future Hospitality Summit
Industry leaders will explore innovative investment models and strengthen partnerships
Updated 4 sec ago
Nadin Hassan
RIYADH: More than 1,000 tourism innovators, global investors and hotel operators from around the world will join government officials in Riyadh for the 2025 edition of the Future Hospitality Summit.
Scheduled for May 11–13 at the Mandarin Oriental Al Faisaliah, the three-day event will revolve around the theme “Where Vision Shapes Opportunity,” featuring a dynamic agenda of panel discussions, investment showcases, and high-profile deal signings.
Organized by The Bench, the 2024 edition of FHS Saudi Arabia resulted in over $1.1 billion in business opportunities and 17 major deals, reaffirming the event’s status as one of the region’s most impactful dealmaking platforms.
The 2025 summit, held alongside strategic partners such as NEOM, Red Sea Global, Taiba Investments, and the Tourism Development Fund, comes as Saudi Arabia advances one of the world’s most ambitious tourism and hospitality strategies.
Backed by a $110 billion development pipeline, the Kingdom aims to deliver more than 362,000 new hotel rooms by 2030.
In 2023 alone, the hospitality sector contributed SR444.3 billion ($118.4 billion) to the national gross domestic product.
Industry leaders at FHS 2025 will explore innovative investment models, address talent development needs, and strengthen partnerships aligned with Vision 2030’s mission to diversify the economy and establish Saudi Arabia as a premier global destination for business, culture, and religious tourism.
“FHS Saudi Arabia continues to be a key engine for hospitality investment and 2025 is shaping up to be no exception,” Jonathan Worsley, chairman of The Bench told Arab News.
“With over 1,000 delegates expected in Riyadh, including an expanded pool of investors, we anticipate a strong uplift in deal volume and a substantial wave of new opportunities. While it’s difficult to quantify exact outcomes, all signs point to another record-breaking year.”
According to Worsley, over a dozen agreements have already been confirmed ahead of the summit.
“Last year, 17 major agreements were signed at FHS Saudi Arabia and we’re well on track to exceed that number this year. We anticipate total deal value to surpass previous records driven by significant projects and opportunities across both primary hubs and emerging destinations such as Aseer, Al-Ahsa,” he said.
Worsely added:“The partnerships forged at FHS Saudi Arabia will further elevate Saudi Arabia’s global hospitality positioning.” Riyadh, Jeddah, Makkah, and Madinah continue to serve as key investment hubs, while interest grows in mixed-use developments, branded residences, and eco-luxury projects.
Worsely said: “There’s strong demand for distinctive, high-end products — from fine dining and leisure assets to mixed-use developments that blend hospitality, retail, and culture.”
He added: “Our summit is not merely a forum for discussion — it’s a marketplace where investors meet opportunities. Every panel discussion and networking session is engineered to move the conversation forward.”
The 2025 agenda will also debut two new platforms: the “NextGen Investment Forum,” focused on addressing workforce development in the hospitality sector, and the second edition of “Startup Den,” spotlighting early-stage companies driving innovation.
Saudi Arabia’s tourism sector is experiencing rapid growth, with international arrivals reaching 30 million in 2024, with a target of hitting 70 million by 2030, according to a Ministry of Tourism press release.
Revenue from international tourists surged 148 percent in 2024 compared to 2019 — the highest growth rate among G20 nations.
Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen.
Duncan O’Rourke Accor’s, CEO for the Middle East, Africa and Asia Pacific
An annual performance report published in April highlighted record-breaking pilgrim numbers, cultural milestones, and major international events, all driven by strategic investments, regulatory reforms, and transformative mega-projects.
“Fueled by ambitious Vision 2030 goals, Saudi Arabia’s tourism sector presents a compelling investment landscape, evidenced by its record-breaking SR444.3 billion GDP contribution in 2023, accounting for 11.5 percent of the national economy,” Oussama El-Kadiri, partner and head of hospitality, tourism and leisure at Knight Frank said in a statement.
He added: “This growth reflects the Kingdom’s strategic initiative to position itself as a leading global tourism destination.”
Hospitality operators are swiftly expanding their presence to match the sector’s growth, with Accor — one of the event’s headline sponsors — broadening its footprint across both primary and secondary cities.
“Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen,” Duncan O’Rourke, Accor’s CEO for the Middle East, Africa and Asia Pacific told Arab News.
He added: “Accor’s footprint in Saudi Arabia includes 45 hotels across 15 brands and over 17,000 keys. This is more than growth. It’s about legacy, partnership, and purpose. And we are honored to be a part of it.”
O’Rourke stated that demand for diversified products is rising. “From Accor’s perspective, we are seeing strong traction across segments, with a focus on branded residences, extended stay, and midscale brands, which offer compelling value while supporting long-stay and group needs.”
On pricing, O’Rourke noted that the Kingdom’s average daily rate in 2024 reflects solid fundamentals with “Riyadh’s ADR rising by approximately 10-12 percent year on year.”
In preparation for global megaevents such as Expo 2030 and the FIFA World Cup 2034, Accor is also prioritizing flexibility and localized strategies to meet evolving market demands.
“Preparing our teams for the future is not just a strategic priority, it’s how çwe live our purpose,” said O’Rourke. “In short, we’re not just responding to labor market shifts, we’re helping to shape them.”
FHS Saudi Arabia 2025 will offer a dynamic blend of keynote sessions, investor roundtables, and sector-specific panels, with a strong focus on ESG, cultural integration, and effective project delivery.
As giga-projects gain momentum, record deal activity is forecast, and investor interest expands into new sub-sectors, this year’s summit is set to be a pivotal moment for Saudi Arabia’s hospitality industry.
KAFD at the heart of Saudi Arabia’s economic and investment future
The King Abdullah Financial District has significantly boosted Riyadh’s appeal as a business and tourism destination
Updated 7 min 38 sec ago
MOHAMMED AL-KINANI
JEDDAH: The King Abdullah Financial District is fast emerging as a centerpiece of Saudi Arabia’s economic transformation, playing a critical role in the Kingdom’s efforts to diversify and establish itself as a global hub for commerce and investment.
Located in the capital, Riyadh, KAFD is more than just a collection of striking buildings, it is a thriving financial ecosystem.
As the base for the Saudi Stock Exchange, global investment firms, regulatory bodies, and fintech companies, the district is helping to reshape the financial landscape of the region.
KAFD aligns closely with the goals of Vision 2030, Saudi Arabia’s strategic framework for economic diversification. It supports growth in capital markets, attracts foreign direct investment, and fosters innovation in financial technologies, according to industry experts.
The scale of the development reflects its ambition. Spanning 3.2 million sq. meters of gross floor area over a 1.6 million sq. meter site, the district includes over 2,900 residential units and more than 6,100 hotel keys and serviced apartments. It also boasts Riyadh’s tallest tower — an 80-story skyscraper reaching 385 meters — and is the largest project in the world to receive the Leadership in Energy and Environmental Design ND Stage 2 Platinum certification.
KAFD’s design is the work of over 25 leading architectural and design firms, including Foster + Partners, Henning Larsen, and Gensler. Its five main asset classes — office, residential, hospitality, retail, and entertainment — combine to offer a modern, integrated environment for business and living.
Mansoor Ahmed, an independent adviser with over 25 years of regional experience in real estate and infrastructure, told Arab News that KAFD is the center of Saudi Arabia’s financial sector, attracting top institutions, asset managers, and fintech firms.
“KAFD encourages international financial firms and investors to establish operations in Riyadh, enhancing foreign capital inflows. For example, Goldman Sachs, a leading global investment bank, announced plans to open a new office in KAFD,” Ahmed said.
He added that Tadawul is expanding rapidly, and KAFD plays a key role in supporting market growth, driving liquidity, and diversifying financial products.
“Tadawul Tower, located within KAFD, serves as the headquarters of the Saudi Stock Exchange. Its presence in the district has contributed to attracting investors and businesses, thereby boosting the region’s economic growth,” he said.
More than buildings
Commenting on how KAFD is enhancing Saudi Arabia’s competitiveness as a global financial center, Tamer Al-Sayed, chief financial officer at the FII Institute, told Arab News that the district is more than just a striking skyline — it’s a statement.
“It signals Saudi Arabia’s commitment to becoming a major financial hub, offering a world-class ecosystem designed to attract global institutions, investors, and talent. What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms,” Al-Sayed said.
He added that, unlike traditional financial centers, KAFD is being developed in tandem with regulatory transformation.
The King Abdullah Financial District serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms.
Mansoor Ahmed, real estate adviser
“With initiatives like the Financial Sector Development Program, fintech expansion, and capital market liberalization, Saudi Arabia is reshaping its financial landscape,” the CFO said.
He emphasized that KAFD represents these reforms in physical form, hosting key regulatory bodies, financial institutions, and technology-driven firms that will lead future economic growth.
Ahmed explained that KAFD is enhancing private sector participation and foreign direct investment by enabling financial firms to offer more sophisticated investment products, which contributes to diversifying Saudi Arabia’s economy beyond oil.
He highlighted that in 2024 KAFD planned to consolidate some of its income-generating properties into a real estate investment fund and list it on Tadawul, aiming to raise around $700 million.
“This initiative not only funds additional development projects within KAFD but also revitalizes the Saudi REIT sector for investors,” Ahmed said.
The district stands as a tangible expression of Vision 2030, demonstrating the impact of public-private partnerships in advancing Saudi Arabia’s shift toward a knowledge-based economy.
Ahmed emphasized that KAFD directly supports this initiative by working to build a more resilient and diversified financial sector.
“KAFD has been pivotal in advancing Saudi Arabia’s fintech landscape. The district’s infrastructure and strategic initiatives have contributed to the growth of fintech companies, aligning with the FSDP’s goal to foster innovation and competition in the financial sector,” he said.
Ahmed further added that KAFD fosters entrepreneurship and fintech growth by hosting innovation-driven financial firms. “KAFD serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms. The Ministry of Investment and KAFD have entered into an agreement to accelerate investment and entrepreneurship within the district,” he said.
In terms of job creation and talent development, he said the district acts as a catalyst for employment across finance, technology, and professional services, attracting both local and international talent.
“KAFD is expected to accommodate around 50,000 residents upon completion and provide employment opportunities for approximately 43,000 workers, significantly contributing to job creation in line with Vision 2030’s goals,” Ahmed said.
Beyond its economic role, the district has significantly boosted Riyadh’s appeal as a business and tourism destination, helping the city’s hospitality
sector thrive.
Ahmed pointed out that KAFD sets new benchmarks for commercial real estate in Riyadh by offering Grade A office spaces that cater to global demand for smart, sustainable buildings.
“KAFD is integrating various smart city solutions to create a sustainable and efficient urban environment, including smart traffic management and mobility solutions, enhancing the appeal of its commercial real estate offerings,” he said, adding that KAFD also plays a strategic role in the Kingdom’s meetings, incentives, conferences, and exhibitions sector, positioning Riyadh as a regional business tourism hub.
“KAFD’s integration of luxury residences, exclusive retail, hospitality offerings, and diverse entertainment and recreational experiences within a compact, pedestrian-friendly urban ecosystem makes it an attractive destination for business events and tourism,” the independent adviser said.
New York, London, Riyadh?
The FII Institute’s Al-Sayed outlined the key factors that will determine whether KAFD can rival the world’s top financial hubs such as New York, London, and Singapore. He stressed that such centers evolve through a combination of regulation, infrastructure, talent, and trust.
“KAFD has the foundation, but to compete with London, New York, and Dubai, it needs three critical factors. First, regulatory competitiveness as a business-friendly regulatory environment is key. The ability to offer tax incentives, ease of doing business, and a seamless legal framework will define how attractive it becomes to global players,” he said.
What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms.
Tamer Al-Sayed, chief financial officer at the FII Institute
The second factor, he added, is liquidity and market depth. “Financial hubs thrive on deep, liquid markets. Expanding the Saudi stock market, facilitating foreign capital flows, and enhancing financial product diversity are essential.”
Al-Sayed identified talent and global connectivity as the third pillar. He noted that attracting top global talent and building strong international links will be decisive.
“Attracting international finance professionals while developing local talent through education and experience will be a game-changer. Additionally, enhancing global connectivity through strategic partnerships with other financial centers will solidify its position,” Al-Sayed said.
He pointed out that, just as Dubai succeeded by positioning itself as the financial gateway to the Middle East, KAFD has the potential to go even further by leveraging Saudi Arabia’s scale, resources, and long-term vision.
On foreign investment, Al-Sayed said KAFD is instrumental in shaping Saudi Arabia’s appeal to international investors.
“Traditionally, investors look for stability, accessibility, and a supportive ecosystem. KAFD provides this in a way that aligns with Vision 2030’s broader goals— diversification, digital transformation, and private-sector growth,”the CFO said.
He added that confidence in the Saudi market is key to attracting FDI.
“When global banks, asset managers, and venture capital firms establish regional headquarters at KAFD, this sends a strong signal that Saudi Arabia is open for business, not just as an oil powerhouse but as a financial and economic force,” he said.
Al-Sayed concluded that KAFD is not merely a financial center but a modern, integrated economic ecosystem.
“KAFD’s success will not be measured by the height of its towers but by the impact it has on global capital flows, business confidence, and economic diversification. The challenge is not just in building world-class infrastructure but in fostering a financial culture that can compete on a global scale,” he said.
Venture capital founders focus on scale and substance
Early-stage capital returns with renewed focus and selectivity
Updated 22 min 59 sec ago
Nour El-Shaeri
RIYADH: Momentum is building across the Middle East and North Africa’s startup ecosystem as early-stage capital returns with renewed focus and selectivity.
Investors are backing sharper business models, founders are scaling with intent, and sector diversity is deepening — signaling a more disciplined, strategically aligned phase of growth for the region.
On the regulatory front, Nama Ventures Capital Co. has received approval from Saudi Arabia’s Capital Market Authority to commence investment management activities in the Kingdom.
Founded by Mohammed Al-Zubi and chaired by Sultan Al-Saud, the firm is one of the first foreign venture capital firms to become fully licensed under Saudi capital markets law.
Originally registered in the Cayman Islands, Nama has added Saudi Arabia to its regulatory base to align with the country’s Vision 2030 objectives.
“Vision 2030 continues to turn Saudi Arabia into a thriving global hub for innovation, investment, and entrepreneurship — and this achievement places Nama Ventures at the heart of that momentum,” Al-Saud said.
The approval will allow the firm to launch its flagship funds and Shariah-compliant investment vehicles, targeting high-growth startups across Saudi Arabia, the MENA region, and selected global markets.
“This letter is more than a regulatory approval; it represents our deep-rooted commitment to Saudi Arabia’s entrepreneurial vision,” said Al-Zubi, founder and managing partner.
Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet provides a financial operating system for SMSEs. (Supplied)
“We are proud to be fully ‘on the ground,’ regulated, and aligned with the future of venture capital in the region,” he added.
Nama Ventures has made early-stage investments in several high-growth startups, including Salla and Tamara, both of which have since reached unicorn status.
Among its more recent highlights is Brev.dev, a developer infrastructure platform that was acquired by Nvidia, underscoring Nama’s ability to identify globally competitive founders.
Money Fellows closes $13m strategic round
Egypt-based fintech platform Money Fellows has raised $13 million in a strategic round co-led by Al Mada Ventures and DPI Venture Capital through the Nclude Fund, with participation from Partech, CommerzVentures, and others.
Founded in 2017 by Ahmed Wadi, the company digitises traditional savings circles to facilitate accessible saving, borrowing, and investing across Africa.
The new funding will support platform enhancement, team expansion, and entry into new markets, particularly Morocco.
Fintech startup Nqoodlet raises $3m seed round
Saudi Arabia-based fintech Nqoodlet has closed a $3 million seed round led by Waad Investments, with participation from OmanTel, 500 Sanabil Investment, Oqal, Seed Holding, and other investors.
Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet provides a financial operating system for small and medium-sized enterprises across Saudi Arabia and the GCC. Its offerings include smart corporate cards, real-time expense tracking, automated VAT filing, and financial planning tools.
The new funding will support the expansion of its banking infrastructure, the development of open banking integrations and automated tax reporting, team growth, and broader collaboration with banks and ecosystem partners.
Career 180 receives US investment and enters Saudi market
Egyptian education tech startup Career 180 has received a six-figure investment from US-based Den VC and announced its expansion into Saudi Arabia, supported by Value Makers Studio.
Founded in 2017 by Shrouk El-Din and Mohamed Akmal, the company offers a Software-as-a-Service-based learning management system that provides practical skills training and job-matching services.
Career 180 provides practical skills training and job-matching services. (Supplied)
Career 180 currently serves over one million learners and aims to place 50,000 individuals in the workforce, with a focus on unemployed youth.
The investment will enable the company to scale its LMS, localize Arabic content, and expand into Oman and Malta.
Canater raises $1m to scale logistics platform
UAE-based logistics startup Canater has raised $1 million in funding from Foras in exchange for a 10 percent equity stake.
Founded in 2024 by Khamis Soliman, Canater provides AI-powered logistics and supply chain solutions for manufacturers in the MENA region, with an initial focus on consumer-packaged goods.
The platform offers end-to-end cross-border trade services, including digital contracts, financing, warehousing, logistics, and real-time shipment tracking.
The funding will be used to enhance the company’s digital infrastructure, expand sectoral reach, and strengthen regulatory partnerships.
Intella partners with Infoline to launch Arabic AI platform in Oman
Arabic AI solutions provider intella has partnered with Infoline, an Omantel subsidiary and leading outsourcing provider in Oman, to roll out its AI-powered customer experience platform, intellaCX.
The platform is designed to convert Arabic voice and text interactions into business insights, offering a tailored solution for Arabic-speaking markets.
IntellaCX supports 25 Arabic dialects and uses proprietary models to deliver transcription accuracy of 95.7 percent.
The platform replaces traditional 5 percent call sampling methods with 100 percent automated analysis, enabling businesses to detect trends, assess performance, and improve service quality at scale.
Through Infoline’s local integration capabilities, the solution will be deployed across Omani enterprises to enhance customer care and operational efficiency.
MENA startup funding rises to $228m in April
Startups across the MENA raised $228.4 million across 26 deals in April, marking a 105 percent increase from March and a nearly 300 percent year-on-year surge.
Saudi Arabia led the region with $158.5 million in funding across eight deals, driven largely by iMENA Group’s $135 million pre-IPO round.
The UAE followed with $62 million across nine deals, while Morocco secured third place with $4 million across two startups.
The fintech sector attracted the most capital, securing $44 million across seven deals. Traveltech and SaaS also saw renewed interest, with SaaS startups raising $1.8 million after a quiet first quarter.
Early-stage investments accounted for $49 million across 20 transactions, indicating strong appetite for emerging ventures despite limited late-stage activity.
Alchemist Doha partners with Startup Grind Qatar
Alchemist Doha, an equity fund focused on tech entrepreneurs in emerging markets, has entered into a strategic partnership with Startup Grind Qatar, the local chapter of a global founder and startup network.
The collaboration will facilitate access to global networks, deliver founder-focused programming, and support high-potential startups in scaling both locally and internationally.
The initiative aligns with broader efforts to strengthen Qatar’s entrepreneurial ecosystem.
MedIQ secures $6m series A to expand in Saudi Arabia and Gulf markets
Pakistan-based health tech platform MedIQ has raised $6 million in a series A funding round led by Rasmal Ventures and Joa Capital, with participation from existing investors.
Founded in 2020 by Saira Siddique, MedIQ provides a hybrid healthcare platform combining telehealth, e-pharmacy services, AI-driven facility digitization, and back-office automation for insurance partners.
The company expanded into Saudi Arabia in 2023 and will use the funding to strengthen its technology stack, scale operations in the Kingdom’s health tech market, and support entry into Qatar and neighboring Gulf markets.
iSUPPLY secures $3m Shariah-compliant financing from Bokra
Egypt-based B2B medical tech startup iSUPPLY has secured $3 million in revenue-based revolving financing from Bokra.
The funding is Shariah-compliant and will support the company’s operational scale-up and improved access to medical supplies, particularly in underserved communities.
Founded in 2022 by Ibrahim Emam, Malek Sultan, and Moustafa Zaki, iSUPPLY offers a one-stop solution to digitise pharmaceutical supply chains and address disruption risks.
The company previously closed a pre-series A round in June with participation from Disruptech Ventures, OneStop Capital, Axian Investment CVC, and Egypt Ventures.
CPX Holding acquires cyber-AI startup spiderSilk
UAE-based cybersecurity firm CPX Holding has acquired local cyber-AI startup spiderSilk, including its core product, the Resonance platform for managing digital exposure.
Founded in 2019, spiderSilk has developed autonomous SOC AI agents and a proprietary cyberintelligence platform built on a global knowledge graph.
The acquisition aims to strengthen CPX’s threat detection capabilities and supports its international expansion strategy, including entry into North America, Saudi Arabia, and the broader GCC.
Konnect Networks receives investment from Attijariwafa Ventures
Tunisian fintech startup Konnect Networks has secured an undisclosed amount from Attijariwafa Ventures as part of a broader funding round that included Visa, Plug and Play Tech Center, and Renew Capital, as well as Digital Africa Ventures, Utopia Capital Management, 54 Collective, and Sunny Side Venture Partners.
Founded in 2021 by Amin Ben Abderrahman, Konnect offers payment links, e-commerce plugins, and APIs for businesses of all sizes.
The latest funding will support product innovation and regional expansion. In late 2024, Konnect also secured funding from Renew Capital.
Sira expands professional networking platform to UAE
Jordan-based professional community platform Sira has launched operations in the UAE as part of its regional expansion strategy.
Founded in 2022 by Ayah Saeed and Zara Najjar, Sira offers a curated, membership-based platform focused on building authentic, values-driven professional connections.
The platform features private communication spaces, peer-led admissions, and sector-agnostic events.
The UAE expansion supports Sira’s mission to build a trust-based network across the MENA region. To date, the company claims it has facilitated over $3.6 million in collaborations among members.
KARACHI: Pakistan is facing a “big backlog” of export containers at its ports after international shipping lines began bypassing the country, following India’s decision to block vessels carrying Pakistani cargo, officials and shipping documents confirmed to Arab News on Friday.
The disruption has led several global shipping companies to impose emergency operational surcharges on Pakistani cargo, citing the “significant impact” of regional geopolitical tensions on their operations.
The move is expected to raise shipping costs and, ultimately, consumer prices in Pakistan, a country of over 240 million people already grappling with economic challenges.
“The European shipping services are bypassing Pakistan ports after India’s ban on the transit of ships loaded with cargoes from Pakistan,” said Syed Tahir Hussain, Secretary General of the Pakistan Ship Agents Association (PSAA).
He accused New Delhi of attempting to undermine Pakistan’s recovering economy, which has shown signs of stabilization under the International Monetary Fund’s (IMF) $7 billion loan program.
PSAA Chairman Mohammed A. Rajpar called India’s move “unwarranted” and against international conventions, saying it was designed to discourage shipping lines from calling at Pakistani ports.
The situation comes as Islamabad is attempting to break free from its boom-and-bust economic cycles by boosting exports, which rose 6 percent to $27 billion through April, according to the Pakistan Bureau of Statistics.
Until recently, many international shipping services transited Pakistani cargo through India’s largest ports — Mundra and Nhava Sheva — by loading what is termed Remaining On Board (ROB) freight.
However, India embargoed this practice last week, prompting several carriers to remove Pakistani ports from their routes and instead launch dedicated feeder services to handle trade valued at approximately $87 billion last year.
Most of Pakistan’s containerized cargo is handled through the South Asia Pakistan Terminal (SAPT) operated by CH Hutchison Holdings, Qasim International Container Terminal (QICT) run by DP World and the Karachi Gateway Terminal managed by Abu Dhabi Ports Group.
“Some vessels carrying Pakistan’s exports sailed from QICT were not allowed berthing in India,” said Hussain, whose association represents over 50 international shipping lines.
“They had to divert to Dubai and other nearby ports,” he added, without specifying when the incident occurred.
Shipping documents seen by Arab News show that at least four vessels were denied entry by Indian authorities earlier this week due to “Karachi onboard cargo.” These ships were rerouted to Colombo in Sri Lanka and Jebel Ali in the United Arab Emirates.
Swiss carrier MSC Mediterranean Shipping redirected all destination cargo via Colombo aboard its vessel MSC Positano V-JP526R, which had been scheduled to call at QICT on May 6.
This change, MSC said in a customer notice, was “due to the current geopolitical situation and restrictions on imports and exports via/from India.”
French shipping giant CMA CGM has removed Karachi from at least four of its service routes, citing the need to adjust operations to and from Pakistan. “BIG BACKLOG” AT PORTS
Export congestion is building at Pakistani ports as hundreds of containers await shipment.
“There is big backlog,” said Khurram Mukhtar, Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA).
Textiles remain Pakistan’s largest export sector, contributing $17 billion last year.
Mukhtar noted that most shipping lines were now planning to route exports through Colombo, with system updates expected by Monday.
MSC has launched a “Pakistan-Colombo Shuttle Service,” a weekly feeder vessel that will transport export containers to Sri Lanka for onward connections to global destinations.
Amid the ongoing crisis, international shipping lines have begun imposing surcharges on Pakistani exporters and importers.
CMA CGM has introduced an Emergency Operational Recovery Surcharge (EORS) of up to $800 per container for shipments to the US, Latin America and Australia, effective from May 15 through June 6.
The French firm said the surcharge was necessary to maintain service reliability and safety during this period. CMA CGM operates more than 250 routes globally with a fleet of 650 vessels.
“Pakistan’s exports are suffering,” said a senior official at one of Pakistan’s major container terminals, speaking on condition of anonymity.
“This will lead to the buildup of a huge container backlog at Pakistani ports,” the official said. “There will be issues like port demurrages. The shipping lines will be charging the consignees with detentions.”
KARACHI: The International Monetary Fund (IMF) approved a $1 billion disbursement for Pakistan under a loan program secured by the government last year, Prime Minister Shehbaz Sharif said in an official statement late Friday.
The announcement followed an IMF Executive Board meeting to finalize staff-level agreements related to the $1 billion payout, as well as Pakistan’s new $1.3 billion arrangement under a climate resilience facility approved in March.
The meeting took place at a time when Pakistan is working to revive investment amid a gradually stabilizing macroeconomic environment, following a prolonged downturn that compelled it to seek external financing from allies and global lenders.
“Prime Minister Shehbaz Sharif expressed satisfaction over the IMF’s approval of the $1 billion tranche for Pakistan and the failure of India’s underhanded tactics against the country,” his office said in a statement issued after the board’s decision.
Media reports said recently India had attempted to pressure the IMF to block the disbursement, citing heightened military tensions between the two neighbors following a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead.
New Delhi blamed Islamabad for the assault, an allegation Pakistani officials repeatedly denied.
Sharif said international financial institutions had “responsibly rejected” India’s narrative and reaffirmed their trust in Pakistan’s economic strategy.
“Indian efforts to sabotage the IMF program have failed,” he said, adding the disbursement would help stabilize the economy and steer it toward long-term recovery.
He praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and other members of the government’s economic team for their role in securing the funds.
Pakistan has been working to broaden its tax base, improve energy sector efficiency, and unlock private sector growth as part of its reform commitments under the $7 billion IMF loan program.
“By the grace of God, the country’s economic situation is improving, and Pakistan is moving toward progress,” Sharif said. “The government remains committed to tax reforms, energy sector improvements and private sector development.”
He reiterated that Pakistan would stay the course on economic stabilization, effective performance and long-term planning.
The IMF funding approval comes at a critical time for Pakistan, as it seeks to reassure global investors and shore up foreign exchange reserves amid geopolitical instability and upcoming budget negotiations.
