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Khaleej Times
20-07-2025
- Business
- Khaleej Times
Led by UAE, GCC poised for boom in foreign direct investment
The outlook for foreign direct investment (FDI) in the GCC and broader Mena region is becoming increasingly optimistic despite ongoing geopolitical tensions and global economic uncertainties. A series of new studies from Bloomberg, S&P Global Market Intelligence, and the United Nations Conference on Trade and Development (Unctad) highlights how the UAE and Saudi Arabia are emerging as global frontrunners in attracting foreign capital, positioning the region as a hub for international investors in search of resilience, innovation, and strategic diversification. According to the Unctad World Investment Report 2025, the UAE surged to 10th place among the world's top FDI destinations in 2024, recording an inflow of $45.6 billion—an increase of nearly 49 per cent from $30.68 billion in 2023. The UAE accounted for 55.6 per cent of total FDI inflows into the Middle East, which collectively stood at $82.08 billion. Other major regional recipients included Saudi Arabia with $15.73 billion, Turkiye with $10.59 billion, and Oman with $8.68 billion. The UAE's rise reflects its aggressive economic reforms, investor-friendly regulations, world-class infrastructure, and robust commitment to future-focused sectors like artificial intelligence (AI), renewable energy, and advanced manufacturing. As noted by Unctad, this trend cements the country's growing importance in global capital flows, outpacing many mature economies. The Bloomberg Media's seventh Global FDI Outlook report, Rebalancing in Real Time, further underscores this shift. Based on a survey of 2,600 global executives — including 227 from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the UAE, Egypt, and Morocco — the study finds that the Mena region leads the world in FDI ambition, with 90 per cent of decision-makers expressing intent to expand internationally. This compares to a global average of 76 per cent. The average investment plan in the region was $239 million, well above the global average of $194 million. FDI interest in the region is no longer solely driven by traditional sectors like oil and real estate. There is growing investor focus on cost efficiency, supply chain reliability, and emerging technologies. Compared to 2023, FDI project interest grew by 10 percentage points in manufacturing, four points in supply chains, and three points in new market expansion. The UAE and Saudi Arabia are investing heavily in AI, with 53 per cent of Mena-based respondents planning to allocate capital to the sector in the next one to three years—making it the top emerging area for investment. Junaid Ansari, head of Investment Strategy and Research at Kamco Invest, said: 'The competition between the US and China to deepen investment linkages in Mena has opened a window of opportunity for the region. GCC countries, led by the UAE and Saudi Arabia, are skillfully leveraging this geopolitical dynamic to attract long-term, strategic capital.' S&P's report has cautioned that after a decade of strong FDI growth across both GCC states and North Africa, 2025 may see a brief moderation due to investor caution over changing US trade policies, volatile oil prices, and the slower-than-expected pace of some GCC economic diversification plans. However, a weakening US dollar could play in the region's favour, reducing the cost of capital for European, Chinese, and Indian investors while enhancing the external competitiveness of GCC economies with currencies pegged to the dollar. Mohamed Ali Omar, associate at S&P Global, said the current weakness of the dollar served as a competitive advantage for GCC nations. 'This dynamic, combined with proactive structural reforms, enhances the region's attractiveness even in a complex global environment.' The conflict in the Middle East, cybersecurity threats, and increased trade barriers remain top concerns for investors, particularly in the wake of recent geopolitical developments and tariff hikes by the US. Despite these challenges, the region is maintaining a pragmatic and resilient approach to growth, particularly through sustainability and ESG integration. The Bloomberg report highlights that 69 per cent of Mena decision-makers have already integrated ESG criteria into their FDI strategies, compared to a global average of 56 per cent while 29 per cent plan to do so in the near future. This strong regional focus on sustainable investment is positioning the GCC not just as a financial hub, but also as a leader in green transformation. The report also reveals that optimism in the Mena region is largely tied to the easing of US-China trade tensions, with 76 per cent of regional respondents citing this as the most encouraging global economic development. It's a sentiment that reflects growing confidence in the region's ability to navigate and benefit from shifting global alignments. FDI experts believe that as the world reconfigures investment priorities in the post-pandemic, post-globalisation era, the GCC—particularly the UAE and Saudi Arabia—is emerging as a sought-after destination for FDI capital, driven by its strong macroeconomic fundamentals, forward-looking governance, and unwavering commitment to technological and sustainable advancement.
Time of India
18-06-2025
- Business
- Time of India
'India's exports share growth among fastest over 2010-23'
NEW DELHI: India's export trajectory from 2010 to 2023 has shown a consistent and steady upward trend, reflecting the resilience and dynamism of its trade sector, an official said on Tuesday. Citing an Unctad report, the official said that over the 2010 to 2023 period, India has been one of the fastest-growing major economies in terms of its share in global exports, achieving a growth rate of 6.3%. "This rate of growth is the highest among all major economies as reported by Unctad key statistics and trends in international trade 2024," the official added. This performance stands out even more when compared to other leading economies such as the European Union, China, and the US, which recorded lower export share growth rates of 3.9%, 6.1%, and 3.9% respectively during the same period. "While some advanced economies like Japan and Russia experienced only marginal increases or stagnation in their export shares, India's export trajectory has been marked by a consistent and steady upward trend, reflecting the resilience and dynamism of its trade sector," the official said. This reflects the effectiveness of India's trade policies, manufacturing and services sectors, and the impact of export promotion initiatives, which have contributed to enhancing the country's integration into global supply chains. The country's total exports in 2009-10 were $274.8 billion. It touched $776.3 billion in 2022-23 and $825 billion in 2024-25. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Khaleej Times
12-06-2025
- Business
- Khaleej Times
UAE emerges as resilient FDI hub amid GCC slowdown
Foreign Direct Investment (FDI) flows into the GCC region are expected to experience a slowdown in 2025 following a decade of sustained growth, but the UAE is expected to buck the trend and remain a regional bright spot. The tempered outlook reflects a confluence of global uncertainties — including evolving US trade policies, declining oil prices, and a more measured pace in the execution of GCC economic diversification projects, according to a new analysis by S&P Global Market Intelligence. The GCC, led by key economies such as the UAE and Saudi Arabia, has historically been a magnet for FDI, attracting capital with its resource-rich economies, stable currencies, and increasingly business-friendly regulatory environments. However, S&P's latest forecast underscores that geopolitical tensions, global economic adjustments, and sectoral realignments will moderate growth prospects over the coming year. Despite this overall cautionary outlook, the UAE is expected to buck the trend and remain a regional bright spot. Recent data from the United Nations Conference on Trade and Development (Unctad) indicates that the UAE was the second-largest recipient of FDI in the Middle East in 2023, garnering over $23 billion, up by more than 28 per cent year-on-year. The Emirates has leveraged its strategic location, progressive reforms, and focus on high-tech and green investments to stay ahead of its peers in the FDI race. S&P Global analysts suggest that the ongoing strategic competition between the US and China will continue to play out in the Mena region, offering opportunities for countries to attract capital from both economic giants. This rivalry is likely to result in a steady stream of bilateral deals, although no immediate shifts in strategy are expected despite high-profile visits and investment pledges. One mitigating factor that could cushion the regional slowdown is the recent weakness in the US dollar, which effectively lowers the cost of investment for non-dollar investors — especially from Europe, China, and India. Since most GCC currencies are pegged to the dollar, the depreciation enhances the external competitiveness of their economies. This stands in contrast to non-GCC nations like Morocco and Tunisia, whose appreciating currencies have begun to erode their investment appeal. Crucially, the nature of FDI inflows into the GCC has shifted decisively in recent years. Once dominated by the hydrocarbons sector, investments are increasingly targeting renewable energy, logistics, infrastructure, tourism, and advanced construction. For instance, the UAE has unveiled ambitious initiatives such as the Dubai Clean Energy Strategy 2050 and Masdar City, both aimed at boosting sustainability and clean-tech innovation. Abu Dhabi's ADIO (Abu Dhabi Investment Office) has also expanded its outreach to high-growth sectors like AgTech and advanced manufacturing. Beyond clean energy, the UAE continues to draw global technology firms, supported by its free zones, talent-friendly visa reforms, and digital infrastructure. In 2024, the UAE launched a new Unified Investment Platform, streamlining licensing and approvals across its emirates, further bolstering its attractiveness to international investors. Nevertheless, the broader regional picture remains mixed. Lower oil prices, driven by softening global demand and rising Opec production, have compressed the foreign exchange reserves of major oil exporters. This not only limits their ability to invest outwardly in the wider Mena region but also reduces fiscal room for further domestic diversification spending. S&P Global notes that while GCC countries will likely resort to increased sovereign borrowing to keep diversification efforts on track, the net effect on global FDI flows will remain negative in the near term. The ripple effects of US tariffs and trade tensions are already manifesting in investor sentiment, with risk-averse capital reallocations away from emerging markets. The UAE, however, continues to strengthen its resilience. In 2023, it signed comprehensive economic partnership agreements (CEPAs) with India, Indonesia, and Türkiye, expanding its trade horizons and enhancing its investment inflows. Additionally, its liberalized 100 per cent foreign ownership laws and golden visa program have been instrumental in positioning the Emirates as a regional headquarters for multinationals. According to analysts, GCC states like Saudi Arabia are pushing ahead with giga-projects under their Vision 2030 umbrella — most notably Neom and The Line — though timelines remain uncertain given the capital-intensive nature of these undertakings and rising global financing costs. In contrast, non-GCC Mena countries may face deeper challenges. While countries like Egypt, Morocco, and Tunisia continue to attract sector-specific FDI in tourism and renewables, structural issues — currency volatility, political uncertainty.
Khaleej Times
16-04-2025
- Business
- Khaleej Times
Middle East economic expansion defies global recession fears
The global economy teeters on the edge of a recession, with UN Trade and Development (Unctad) forecasting a mere 2.3 per cent growth in world gross product for 2025, below the 2.5 per cent threshold signalling a recessionary phase. The agency's latest 'Trade and development foresights 2025' report paints a grim picture of escalating trade tensions, unprecedented policy uncertainty, and disrupted supply chains triggered by President Donald Trump's tariff barrage. However, the Middle East emerges as a symbol of resilience, with Unctad projecting 3.2 per cent regional growth, driven by rising oil production and strategic economic policies, despite the ongoing Gaza conflict's ripple effects. However, the Middle East's economic buoyancy contrasts sharply with the global slowdown, which marks a significant deceleration from pre-pandemic averages. The UAE, a regional powerhouse and the Arab world's second-largest economy, is expected to grow by 3.8 per cent, per World Bank forecasts, driven by tourism, real estate, and financial services. Saudi Arabia, the largest Arab economy, leads the region with a projected 3.5 per cent expansion in 2025, fuelled by increased oil output under Opec+ agreements. The kingdom's Vision 2030 diversification efforts, including $1 trillion in non-oil projects, bolster growth, with the IMF estimating non-oil GDP growth at 4.5 per cent in 2024. Qatar's LNG expansion further supports the region's outlook, with a projected 2.8 per cent growth. Turkiye, straddling Europe and the Middle East, is forecast to achieve 2.9 per cent growth, propelled by monetary easing, robust public spending, and a competitive exchange rate boosting exports. Despite inflationary pressures — consumer prices hit 49 per cent in early 2025, per Turkey's central bank — export growth to the EU and Gulf states, valued at $260 billion in 2024, sustains momentum. However, the Gaza conflict, displacing over 1.9 million Palestinians and costing $20 billion in damages per UN estimates, casts a shadow, disrupting trade routes and investor confidence in neighboring Jordan and Lebanon. Unctad warns that global trade policy uncertainty, at its highest this century, is stifling investment and hiring. US tariff threats, including proposed 25 per cent levies on imports, have already disrupted supply chains, with global trade growth projected to slow to 1.8 per cent in 2025 from 2.5 per cent in 2024. The report highlights a surge in financial volatility, with the VIX index spiking to 25 in Q1 2025, reflecting investor unease. Developing nations, particularly low-income economies, face a 'perfect storm' of rising debt — global public debt reached $97 trillion in 2024, per the IMF — and deteriorating external financial conditions. The Middle East, however, benefits from its strategic role in global energy markets. Oil prices, though volatile at $65 per barrel (S&P Global estimate), support fiscal stability in GCC countries, where breakeven prices range from $55 (Qatar) to $85 (Saudi Arabia), according to Bloomberg Economics. Yet, prolonged trade disputes could depress demand, risking a further price drop that might strain fiscal balances. Unctad stresses the growing importance of South-South trade, which accounts for one-third of global trade, valued at $5.5 trillion in 2024. For the Middle East, intra-regional trade, particularly within the GCC, has surged, with non-oil trade among members rising 15 per cent to $150 billion in 2024, per GCC Statistical Center. Agreements like the UAE-India Comprehensive Economic Partnership, boosting bilateral trade to $85 billion, exemplify the potential of South-South integration. Turkiye's trade with GCC countries, up 20 per cent to $30 billion, further underscores this trend. Unctad calls for urgent dialogue and stronger regional coordination to counter global headwinds. In the Middle East, initiatives like the Arab League's Greater Arab Free Trade Area, covering 18 nations, aim to enhance intra-regional commerce, though political tensions hamper progress. The GCC's unified economic policies, including a planned customs union by 2027, offer a model for resilience. Globally, Unctad advocates for coordinated action to restore confidence, warning that without it, development goals, including the UN's 2030 Agenda, are at risk. The Middle East's 3.2 per cent growth projection for 2025 highlights its ability to navigate global challenges, leveraging oil wealth and diversification. Saudi Arabia's $800 billion in sovereign wealth fund assets and the UAE's $1.5 trillion in foreign investments provide buffers against volatility. However, risks persist: a deeper global recession or prolonged Gaza conflict could disrupt trade and investment flows. For now, the region's focus on South-South trade and domestic reforms positions it to defy the global downturn, offering lessons for other developing economies facing an uncertain future.
Zawya
16-04-2025
- Business
- Zawya
Kenyans, Ugandans gaining little from AI jobs despite high training
Despite being globally renowned suppliers of business process outsourcing (BPO) talent, Kenyans and Ugandans tapped to work in the AI industry often get low-skill and low-paying jobs, even though they are highly trained and skilled, discouraging the growth of talent in the sector. ChatGPT – one of the world's most famous artificial intelligence (AI) chatbots – was trained mostly by Kenyans, and new research now shows may also have contributed to 'deskilling' the youth due to a mismatch of qualifications. UN Trade and Development (Unctad) Technology and Innovation Report 2025 highlights the stark reality of AI workers in countries such as Kenya, Uganda and India, which are global leaders in BPO work. A recent survey on micro task platforms and BPO companies showed that in Kenya and India specifically, 'highly educated workers, with graduate degrees or specialised educations in science, technology, engineering or mathematics, were often relegated to relatively low-skill tasks such as text and image annotation and content moderation.' 'Such significant wastes of human capital may be exacerbated in increasingly connected job markets, in which tasks are outsourced globally,' Unctad warns in the biennial technology report.'Data annotators in developing countries often experience difficult conditions, including up to 10 hours of work per day at wages of less than $2 per hour, engaged in repetitive tasks, and with limited opportunities for career advancement, for example, in Kenya and Uganda.'Essentially, such jobs are eroding Kenya's rich tech talent, and edging out its competitive advantage in the increasingly growing global tech industry, further widening the technology gap and consequently the income inequality gap. Read: IMF: AI could worsen income inequalityDespite being highly trained and skilled in science, technology, engineering and mathematics, Kenyans struggle to find meaningful employment locally and internationally, forcing them to settle for the low-skill AI jobs offered by BPO companies. Over the years, Kenya has developed more tech talent and is now one of the countries with the fastest growth in developers in Africa and globally. Between 2022 and 2023, Kenya recorded the second fastest growth in the number of developers listed on coders platform Github at 41 percent, second only to Nigeria's 45 percent. Last year, Kenya posted the fastest growth in Github developers at 33 percent, pushing the total number of programmers in the country to over 393,000, the fifth highest in Africa after Nigeria, Egypt, South Africa, and Morocco. Also read: Jobs that will survive AI, and those that won'tThe country is also one of the top four tech start-up giants on the continent, a testament to leading in tech talent and innovation, but this has also been changing over time, with such start-ups starved of cash from investors forcing many of them to scale back operations or fold completely. Data from the African Venture Capital Association shows that last year, total funding raised by Kenyan start-ups declined by 33 percent to $318 million from $473 million in 2023. As a result, at least five start-ups closed down after failing to raise follow-up funding, leaving hundreds of talented Kenyans jobless amid tightening economic conditions and falling income. This came hot on the heels of similar scale-backs and shutdowns in 2023, which also left many in the country without jobs. To protect workers in the tech industry, Unctad proposes key policy changes that need urgent action by State organs.'Translating technological progress into shared prosperity requires labour-friendly policies in three stages: investments in education and skills, in pre-production; labour protection and worker empowerment, in production; and progressive taxation, in post-production,' the UN agency said in the report. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
