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Khaleej Times
02-06-2025
- Business
- Khaleej Times
Trump's GCC tour redefining UAE's role as investment hub
US President Donald Trump's whirlwind tour of the GCC nations — the UAE, Saudi Arabia, and Qatar — beginning on May 13, 2025, has unleashed a transformative wave of economic opportunities, bolstering the UAE's position as a global hub for innovation and investment. With over $2.8 trillion in agreements spanning artificial intelligence (AI), aviation, defence, and energy, the visit has deepened US-GCC strategic partnerships, driving bilateral trade, technological collaboration, and foreign direct investment (FDI). The UAE, already a regional economic powerhouse, stands to benefit significantly, with deals worth $200 billion directly impacting its markets, alongside broader commitments like Qatar's $1.2 trillion economic exchange and Saudi Arabia's $600 billion investment pledge to the US. These agreements, coupled with the UAE's 10-year, $1.4 trillion investment framework, signal a new era of economic synergy, though not without risks and complexities. The UAE's Minister of Economy, Abdulla bin Tou Al Marri, described the visit as a 'milestone in fostering economic openness and global collaboration,' emphasising the historic US-UAE partnership rooted in mutual respect. With non-oil trade reaching $32.8 billion in 2024 — 4% of the UAE's global non-oil trade — the US remains the UAE's largest non-Asian trading partner. Nearly 13,000 American companies operate in the UAE, with over 66,000 US trademarks registered by 2024, while 115 Emirati firms thrive in the US across healthcare, technology, and aviation. Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, highlighted the shared commitment to prosperity, noting: 'Our efforts focus on enhancing the flow of goods, services, and capital.' Total bilateral trade reached $39.8 billion in 2024, up from $12.7 billion in 2010, reflecting a diversified exchange, with the UAE as the world's second-largest aluminium exporter, critical to US markets. Trump's tour catalysed landmark frameworks like the US-UAE AI Acceleration Partnership, aimed at advancing AI, cloud infrastructure, and advanced computing. A draft agreement could see the UAE import 500,000 Nvidia AI chips annually from 2025, with 100,000 allocated to G42, a UAE-based AI firm backed by Mubadala and Silver Lake, and the rest supporting US tech giants like Microsoft and Oracle for data centre expansion. This deal, potentially extending to 2030, requires G42 to build equivalent facilities in the US, ensuring mutual benefits. The Abu Dhabi data centre, set to be the largest outside the US, underscores the UAE's ambition to become a global AI hub. Microsoft's $1.5 billion investment in G42 in 2024 further exemplifies this synergy, positioning chipmakers like Nvidia and AMD, and cloud providers like Amazon, for growth, though US export controls on advanced chips pose risks. Aviation agreements were a cornerstone, with Gulf airlines, including Etihad Airways, committing billions to Boeing widebody jets powered by GE Aerospace engines. Etihad's $14.5 billion order reflects robust post-Covid demand for long-haul travel, with global airline capital expenditure projected to grow 7.2% annually through 2030, as per IATA. Boeing and GE Aerospace are poised for sustained revenue, but supply chain bottlenecks could delay deliveries. Defence deals, totalling $180 billion, focused on drones, missile systems, and aircraft, with Raytheon, Lockheed Martin, and Northrop Grumman securing multi-billion-dollar contracts aligned with regional security priorities. Saudi Arabia's $142 billion arms deal, the largest in history, may unfold over decades, introducing execution risks due to long production cycles and compliance hurdles. Energy commitments were equally significant, with the UAE's Adnoc partnering with ExxonMobil, Occidental Petroleum, and EOG Resources for a $60 billion oil and gas expansion. Qatar's LNG terminals and clean energy projects align with the GCC's energy diversification goals, with renewable energy capacity in the region expected to reach 35 GW by 2030, per Irena. Emirates Global Aluminium (EGA) announced a new US smelter to double domestic production, part of the UAE's $1.4 trillion US investment pledge, enhancing supply chain resilience for materials and industrial sectors. Vijay Valecha of Century Financial noted that the $200 billion in UAE-specific deals has spotlighted the country's stable political climate and financial hub status, boosting liquidity and trading volumes. The UAE's FDI inflows reached $22.7 billion in 2024, per UNCTAD, with expectations of further growth as the country targets 5 per cent of GDP in FDI by 2030. Saudi Arabia's $600 billion investment commitment, including $9.5 billion in 2023 across transportation, real estate, and automotive sectors, reflects similar ambitions. The Saudi Public Investment Fund (PIF) has expanded into ride-sharing, gaming, and electric vehicles, aligning with Vision 2030's diversification goals. Qatar's $1.2 trillion economic exchange emphasises infrastructure and technology, with FDI inflows rising to $1.8 billion in 2024, per the Qatar Investment Authority. These investments counter a regional FDI decline, with Saudi Arabia's FDI dropping to $20.7 billion (1.9% of GDP) in 2024, as per Oxford Economics. Trump's unexpected decision to lift US sanctions on Syria, announced during the tour, removes barriers to the country's recovery, potentially boosting GCC trade with the Levant. Progress towards an Iran nuclear deal, facilitated by Oman, introduces upside risks for regional economic stability, though uncertainties persist. The GCC's strategic maritime position on East-West trade routes and influence in global economic debates — spanning sovereign debt and monetary system reforms — elevate its importance to the US administration. The US trade surplus with the GCC, coupled with a 10 per cent tariff rate compared to 70% for others, underscores the region's favoured status, per White House fact sheets. Despite the optimism, risks loom. Charu Chanana of Saxo Bank highlights US export controls on AI chips, which could impact Nvidia and AMD, and execution delays due to supply chain constraints affecting defence and energy projects. Geopolitical volatility, including Middle East tensions and Red Sea disruptions, could derail deals, while high valuations in AI and defence stocks risk corrections. Heavy reliance on state-owned entities like Adnoc and G42 introduces concentration risks, necessitating diversified strategies. Global protectionism, with trade tensions at record levels, adds complexity, though the GCC's low tariff rates mitigate some impacts. The UAE's economic ascent is further evidenced by its fintech and crypto sectors, with $30 billion in crypto investments in 2024 and a 210% adoption surge, as per Atmos. This aligns with Trump's deals, particularly in AI and technology, positioning the UAE as a leader in digital finance. The country's regulatory frameworks, including DIFC and ADGM, foster innovation while ensuring stability, attracting $1.1 billion in startup funding across 207 deals in 2024, according to Magnitt. Trump's tour has redefined US-GCC economic ties, unlocking opportunities that align with the UAE's vision for diversification and innovation. For investors, AI, aviation, defence, and energy offer significant potential, but a selective approach is crucial to mitigate risks. As Maya Senussi of Oxford Economics notes, the $1 trillion in US-bound investments signals the GCC's growth ambitions, catalysing stronger FDI inflows and reshaping global economic dynamics. As analysts observed, with the UAE at the forefront, Trump's visit marks a pivotal moment, reinforcing the region's role as a beacon of opportunity in a volatile global landscape.
CBC
20-05-2025
- Business
- CBC
Ontario, Manitoba agree to boost interprovincial trade, facing U.S. tariff crunch
Provinces sign MOU to ease barriers on flow of goods, services, workers Media | What we know about the trade deal between Ontario and Manitoba Caption: Ontario and Manitoba are the latest provinces to sign an agreement aimed at tearing down interprovincial trade barriers. As CBC's Shawn Jeffords explains, this comes as U.S. President Donald Trump's tariffs continue to impact the Canadian economy. Open Full Embed in New Tab Loading external pages may require significantly more data usage than loading CBC Lite story pages. As the threat of U.S. tariffs ratchets up pressure on the Canadian economy, the governments of Ontario and Manitoba have agreed to ease barriers on the flow of goods, services and workers between the two provinces. Ontario Premier Doug Ford and Manitoba Premier Wab Kinew announced a memorandum of understanding (MOU) at a news conference Wednesday. The Ford government has recently signed similar MOUs with Nova Scotia and New Brunswick. Speaking to reporters, Ford said interprovincial trade barriers cost the national economy $200 billion every year. "Like President Trump's tariffs, they divide us and hold back our economy," Ford said. The premier added that he looks forward to signing similar agreements with other provinces. Kinew said in a news release the agreement will "unlock more economic opportunities for people in both provinces." "We're facing a tariff war on two fronts and now is the time to build up this country we love so much," Kinew said in the release. "As premiers, we are all working toward the common goal of powering our Canadian economy toward the future." Ontario's top exports to Manitoba include household goods, food and beverages, the province says. Manitoba's top exports to Ontario are canola oil products and conventional crude oil. In 2021, trade between the two provinces was valued at $19.5 billion, the release said. Wednesday's agreement also includes direct-to-consumer sales of alcohol and improved interprovincial labour mobility, saying the provinces will aim to ensure any good, service or worker deemed acceptable in one province is also deemed acceptable in the other. Last month, Ontario tabled new legislation that Ford said will make the province the first in Canada to unconditionally remove exceptions to interprovincial free trade. Asked if he was disappointed that Ontario has only signed three MOUs with other provinces so far, Ford said he feels things are moving quickly and hopes to sign with all the provinces and territories by July 1. Ford also said he remains hopeful for a trade deal with the U.S., noting Trump appears to be "friendly with everyone now." "You can't just ignore your largest customer, your largest trading partner," he said. Ford likens tariff pressures to pandemic The agreement between the provinces comes one day before Ford unveils his first budget since winning a third-straight majority government in February — one where the impact of Trump's tariffs on the auto and steel sectors will loom large. Though as CBC News has reported, cracks were showing in Ontario's economy even before the trade war. Asked if he would divulge any budget details ahead of time, Ford was tight-lipped, but said U.S. tariffs have changed the calculus. "We have to look at it through a different lens now since these tariffs have been put on us," Ford said. As recently as last fall, the Ford government said it would balance Ontario's books by the 2026-2027 fiscal year. It projected a $1.5-billion deficit in this spring budget, followed by a surplus of just under a billion dollars the following year. But those figures were part of government calculations before Trump imposed tariffs on Canada. "You have two options in a budget, you can start cutting and slashing, which I've never believed [in]. In tougher times, you go out there, you put money in infrastructure and keep building," he said. "We can always balance in a year or two," Ford said. "The way I can describe is like the pandemic. You have to put money into the economy to keep things going." 'We are in a war': minister defends controversial bill In June, the premiers are set to meet with Prime Minister Mark Carney to discuss their wish lists of large-scale infrastructure projects. Asked what's on his, Ford replied: building a new nuclear facility, a tunnel under Highway 401 and the mining of critical minerals in northern Ontario's Ring of Fire, the latter of which would be designated a "special economic zone" under new legislation called the Protect Ontario by Unleashing Our Economy Act. The Ford government has faced fierce criticism from opposition parties for the proposed bill, which would allow the government to exempt itself from following laws on certain projects. Ontario's Minister of Economic Development, Job Creation and Trade Vic Fedeli defended the special zones Wednesday by pointing to economic pressures from the U.S. "We are in a war. We are in an economic war with the U.S.," said Fedeli, adding the zones will "help reduce red tape, help speed up the projects." "This is all about paving the way for these companies to come to Ontario," said Fedeli. "We've got to get through the permiting and all of the things that are holding us back."
bnok24
11-05-2025
- Business
- bnok24
Zed's Launches Smart Mobility Services in the Egyptian Market
In a strategic move that marks the beginning of a new era in Egypt's smart mobility sector, Zed's has officially launched its digital platform offering innovative urban transportation solutions across major Egyptian cities This initiative comes at a crucial time amid rising energy costs, inflation, and continuous population growth. Zed's introduces a locally developed model that caters to the needs of Egyptian families by offering safe, efficient mobility while also empowering drivers and creating sustainable economic opportunities Ashraf Manour, Founder and Chairman of Zed's, stated 'With the Egyptian delivery services market expected to surpass $256 million by the end of 2025, there's a pressing need for innovative, local solutions that directly address economic concerns and enhance the overall transportation experience. At Zed's, we're building our platform around a distinctly Egyptian vision focused on transparency, fairness, and full ecosystem integration Zed's: A Local Smart Mobility Platform Focused on Economic Sustainability The company has commenced its first phase of operations in Alexandria, with plans to expand across all Egyptian governorates within the next nine months. Zed's aims to create over 200,000 driver opportunities in its first year and attract 2 million active users by the end of 2025 This ambitious expansion reflects the company's deep commitment to serving local market needs through smart, efficient solutions built on cutting-edge technology Zed's strategy is grounded in offering a sustainable economic model that balances the interests of both riders and drivers. The platform operates with a transparent pricing system free of hidden fees or sudden surcharges, making it an attractive, reliable alternative to international competitors whose prices have risen significantly in the local market. Zed's also aims to reduce drivers' operational costs by offering the lowest commission rates in the industry Safety and Innovation in Every Ride Zed's platform is equipped with comprehensive safety features, including AI-powered live trip monitoring, full audio and video recording of rides, and an emergency button that connects passengers directly with support teams at any time A standout feature is the 'Pink Mode', allowing female passengers to choose female drivers exclusively, creating a safer and more comfortable travel environment for women In support of drivers, Zed's provides special financing programs to help cover fuel and maintenance costs, alongside health insurance and vehicle coverage. The company is also committed to promoting green transportation by encouraging drivers to switch to electric and natural gas vehicles, reducing carbon emissions and fuel expenses Flexible Payments and an Enhanced User Experience To improve accessibility, Zed's offers flexible payment options, including Buy Now, Pay Later (BNPL) in partnership with leading local banks. This approach broadens user access to smart transport services without the burden of immediate financial commitments Additionally, Zed's offers a unique in-vehicle entertainment experience, featuring movies, music, and sports content—transforming daily commutes into enjoyable journeys Strategic Partnerships Fueling Growth Zed's has entered into strategic partnerships with leading financial and tech institutions in the Egyptian market. These collaborations enhance the value delivered to both drivers and riders, ensuring adaptability to shifting market demands and supporting the delivery of innovative financial services Download Zed's App: A New Chapter for Smart Transportation in Egypt Drivers can download the app via while passengers can access it through Watch the launch video here: The Zed's app is now available for download on Google Play and the App Store, enabling users and drivers to start benefiting from its wide range of smart features. Designed to be the go-to solution for affordable, secure transportation, Zed's is paving the way toward a sustainable digital economy in Egypt Google News تابعونا على تابعونا على تطبيق نبض
