Week from 24 to 31 May 2023 |
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This weekly newsletter prepared on behalf of the EU-GCC Dialogue on Economic Diversification Project includes the top headlines of the most significant and relevant news from across the EU and GCC in a consolidated easy to read format.
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New Unitary Patent system: pioneering a new era of patent protection and enforcement in the EU
The Commission welcomes the launch of the Unitary Patent system today, which will make it simpler and easier for companies to protect their innovations in Europe and capitalise on their intellectual property. The Unitary Patent system will strengthen the EU's innovation and competitiveness and complete the Single Market for patents. It will initially cover 17 Member States, representing around 80% of the EU's GDP. Participation is open to further Member States in the future.
The Unitary Patent system provides a one-stop-shop for the registration and enforcement of patents in Europe. This means lower costs, less paperwork, and reduced administrative burden for innovators, in particular for SMEs. It allows companies and other innovators to receive a single “unitary” patent for their inventions, valid across all the participating Member States. This replaces the need to navigate a complex patchwork of national patent laws and procedures and sets aside the costlier national validation requirements applicable to European patents. Read more.
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EU Cohesion Policy: €120 million call for urban innovation projects
EU Cohesion Policy helps innovating our cities. The European Urban Initiative (EUI) is launching today a second call for proposals worth €120 million for innovative projects that should develop and test new solutions to tackling current urban challenges.
The call looks for projects that trigger true transformation in cities, generate investments and inspire others.
The projects must focus on one of the following three priorities:
- Greening Cities - to experiment with and deliver tangible innovative solutions for green and blue infrastructures, addressing biodiversity, pollution, and climate challenges;
- Sustainable tourism - to trigger long-term green and digital transformation, resilience and sustainability in the tourism sector. This could be achieved by diversifying tourism products, seeking a positive impact on local communities and the environment, fostering social inclusion and social innovation, and improving connections with smaller areas and towns;
- Harnessing talent in shrinking cities - placed-based and integrated pilot projects to test new solutions to retain and attract talents. This could be achieved by involving local communities and addressing the economic, social and environmental dimensions caused by the demographic transition.
The European Regional Development Fund (ERDF) will finance 80% of the cost of selected projects. Each project can receive up to €5 million. Part of this funding will support the transfer of innovative solutions to other cities in Europe to ensure an even bigger impact, especially in cities and regions most in need of sustainable urban transformation. For that, supported urban authorities will set up transfer partnerships with three other cities to replicate the projects.
The call is open to all EU cities individually or as a group. Interested applicants are invited to register to information seminars and other meetings scheduled in the coming weeks. Details will be available on the EUI website. The deadline for applications is 5 October 2023. Read more.
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Eurostat report shows EU's progress on Sustainable Development Goals
Eurostat, the statistical office of the European Union, published the ‘Sustainable Development in the European Union — monitoring report on progress towards the SDGs in an EU context, 2023 edition', which provides a statistical overview of progress towards the Sustainable Development Goals (SDGs) in the EU. The report is published together with the European Semester Spring Package, in order to increase its relevance for policy and that way deliver on the commitment by this Commission to integrate the SDGs in the European Semester, a task entrusted to Commissioner Gentiloni.
The report shows that the EU has made progress towards most goals over the last five years, in line with Commission's priorities in key policy areas such as the European Green Deal, the 8th Environment Action Programme and the European Pillar of Social Rights Action Plan. The data show the EU has progressed strongly towards many socio-economic goals, while more progress is expected in the environmental domain as Member States implement the ambitious targets of the European Green Deal. Read more.
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Policy guidance under the European Semester: Sustaining reforms and investments to secure the EU's long-term prosperity, competitiveness, fairness and resilience
The Commission is providing guidance to Member States under the 2023 European Semester Spring Package to build a robust and future-proof economy that secures competitiveness and long-term prosperity for all in the face of a challenging geopolitical environment. This requires an integrated approach across all policy areas: promoting environmental sustainability, productivity, fairness, and macroeconomic stability. The European Semester provides the policy coordination framework for that purpose, embedding the implementation of the Recovery and Resilience Facility (RRF) and cohesion policy programmes. The European Semester cycle also provides updated reporting on progress towards the delivery of the Sustainable Development Goals across Member States. Read more.
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KSA: Number of SMEs in Saudi Arabia rises 4.8% in Q1, exceeds 1.2m
Saudi Arabia is witnessing increased entrepreneurial activity as the total number of small and medium enterprises exceeded 1.2 million in the first quarter of 2023.
According to a report released by the Small and Medium Enterprises General Authority, also known as Monsha’at, this figure reflects a 4.8 percent surge compared to the final quarter of 2022.
The report further revealed that 88,858 new businesses were launched across the Kingdom in the first quarter of 2023.
Riyadh was home to 41.4 percent of the Kingdom’s total SMEs, followed by Makkah at 18.1 percent, the Eastern Province at 11.1 percent and the other cities accounted for 28.6 percent of the total.
SME financing reached its highest level in the first quarter of 2023, touching SR1.35 billion ($359 million). Read more.
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KSA: Saudi Arabia set to jump ahead with sustainable technologies
Saudi Arabia’s emphasis on sustainability factors in the ongoing development projects will help it leapfrog to new sustainable technologies and standards, said Fahad Alajlan, president of the King Abdullah Petroleum Studies and Research Center.
The event discussed in detail Saudi Arabia’s ambition to become a global transport and logistics hub. Experts from different sectors took part in panel discussions to highlight measures that the Kingdom should take to achieve its goal as part of its efforts to diversify its economy away from oil.
Suliman Al-Mazroua, CEO of the National Industrial Development and Logistics Program, said that the Kingdom had witnessed several monumental changes in its economy since the launch of Vision 2030. Highlighting the growth of Saudi Arabia in the transport sector, Al-Mazroua revealed that Saudi Arabia had jumped 17 places in the Logistics Performance Index released by the World Bank last April. Read more.
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KSA: Saudi Arabia, UAE poised to lead region’s $6bn gaming sector: report
Led by a young and digital-savvy population, Saudi Arabia and the UAE are set to spearhead the Middle East and North Africa’s gaming sector, positioning it for a $6 billion valuation by 2027, according to the Dubai Multi Commodities Centre’s latest study.
The DMCC report titled “Future of Trade 2023 Gaming in the MENA: Geared for Growth” revealed that the region’s gaming industry is reaping substantial returns.
Saudi Arabia has been channeling significant investment into the gaming industry. Take, for instance, Savvy Games, a wholly owned Public Investment Fund entity, which agreed last April to acquire US-based gaming company Scopely for $4.9 billion. Read more.
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KSA: Investments in Kingdom’s special economic zones reach $12.6bn
Affirming Saudi Arabia’s evolution into a global trade hub, total anchor investments in its four special economic zones reached SR47.2 billion ($12.6 billion) to date, it was disclosed at a forum.
Apart from the existing investments made by companies like Lucid and Seera, the Saudi Special Economic Zones Investment Forum in Riyadh on Monday also saw new investment pledges for projects in zones established in King Abdullah Economic City, Ras Al-Khair, Riyadh, and Jazan.
It was announced that Himmah Projects will invest SR2.15 billion in King Abdullah Economic City to establish an automotive and mobility export hub catering to the Middle East and Africa. Read more.
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KSA: Saudi Arabia well on its way to top 15 economies, says Al-Falih
One of Saudi Arabia’s goals is to be among the top 15 nations globally in terms of gross domestic product, and the Kingdom is well on its way to achieving it, said Khalid Al-Falih, minister of investment and chairman of the Economic Cities and Special Zones Authority. “We went from the 20th before the launch of the Saudi Vision 2030 to the 17th (spot) by the end of last year,” said the minister at the Saudi Special Economic Zones Investment Forum held in Riyadh on Monday.
In partnership with the Regional Headquarters Program, the forum discussed the special economic zones, a cornerstone of Saudi Arabia’s National Investment Strategy and the National Industrial Development and Logistics Program.
“Our GDP is 70 percent higher, and our non-oil revenues are more than double what they were when we started Vision 2030 in 2016,” said the minister.
Read more.
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KSA: Foreign investors in special economic zones to get extra incentives for hiring Saudis
Saudi Arabia will offer foreign investors operating in the Kingdom’s special economic zones extra incentives to hire local workforce, said Minister of Human Resources and Social Development Ahmed Al-Rajhi.
He was speaking at the Saudi Special Economic Zones Investment Forum in Riyadh on Monday. The minister noted that the special economic zones will be exempt from Saudization requirements and Human Resources Development Fund will provide extra benefits should companies opt to hire locals.
Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said that policies related to the special zones were designed in such a way that they will give as much freedom to investors as possible.
Al-Jadaan added that guard rails have been put on economic zones’ policies to ensure that they don’t compete with the base economy. Read more.
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UAE: UAE announces 3 new decisions relating to corporate tax
The UAE Ministry of Finance has issued three new decisions on corporate tax ahead of its introduction on June 1, covering details on restructuring, taxable income and intra-group transfers.
One of the decisions “provides details on how to claim corporate tax relief on transfer of assets and liabilities between members of a qualifying group”, the ministry said in a statement on Wednesday.
The conditions under which business mergers and other restructuring transactions can be undertaken without triggering a corporate tax liability is clarified by the second decision.
Meanwhile, the third decision outlines the general rules for determining taxable income to streamline the process for UAE businesses. Read more.
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UAE: Abu Dhabi launches $136m fund to help industrial SMEs adopt smart manufacturing
Abu Dhabi has launched a Dh500 million ($136 million) fund to help small and medium industrial enterprises adopt smart manufacturing technology, as the emirate seeks to boost the industrial sector’s contribution to the national economy.
The Abu Dhabi Department of Economic Development (Added) introduced the Smart Manufacturing Incentive Programme and established the Smart Manufacturing Competence Centre to help SMEs keep pace with Industry 4.0 practices, the government body said on Wednesday.
The two new initiatives were announced at the sidelines of the Make it in the Emirates forum in the UAE capital on Wednesday.
"The launch of these two new initiatives is a valuable addition to our efforts to turbocharge the next phase of diversification strategy, as we believe supporting the transition to Industry 4.0 will positively contribute to driving innovation, enhancing growth of knowledge-based sectors and increasing non-oil GDP," said Ahmed Al Zaabi, chairman of Added. Read more.
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UAE: Adnoc signs agreements with more than 60 companies to boost local manufacturing
Adnoc has signed agreements with more than 60 UAE and international companies to manufacture critical non-oil products in its supply chain in the Emirates as part of its localisation drive.
The energy company also expects to meet its target to domestically manufacture Dh70 billion ($19 billion) worth of products in its procurement pipeline by 2027, from a previous goal of 2030, it said in a statement on Wednesday.
The agreements, which were announced at the Make it in the Emirates forum in Abu Dhabi, have enabled Dh2.84 billion to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities, Adnoc said.
The deals are estimated to contribute to 10 per cent of the Dh172 billion target in the Abu Dhabi Industrial Strategy, which will double the size of the emirate's manufacturing sector, Adnoc said.
The agreements could also enable 21,500 jobs within the UAE by 2031, it added. Read more.
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UAE: Investment Corporation of Dubai’s 2022 net profit surges fivefold on revenue boost
The Investment Corporation of Dubai, the principal investment arm of the emirate’s government, reported a fivefold surge in its 2022 net profit as revenue rose by a record 58 per cent on the back of an improved performance by all of its business units.
Total net profit for the full year climbed to Dh29.77 billion ($8.1 billion) last year, compared with Dh5.48 billion in 2021, ICD said in a regulatory filing to Nasdaq Dubai on Tuesday.
Revenue also reached a record Dh267.4 billion ($72.7 billion), up from Dh169.44 billion on the year prior, on the back of a surge in travel, tourism activities, and higher oil and gas revenues.
Overall, revenues grew faster than operational costs, boosting margins, the company said. Read more.
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UAE: UAE to set up 30 new industrial units to boost GDP contribution
The UAE is launching a series of initiatives including setting up new industrial units to increase industrial exports and boost the sector’s contribution to the national economy, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, has said.
With the initiatives launched last year, the UAE has already managed to increase the industrial sector’s contribution to national gross domestic product to Dh182 billion ($50 billion), a 38 percent increase from Dh132 billion in 2020, Dr Al Jaber said in his keynote speech at the second Make it in the Emirates forum in Abu Dhabi.
The value of the UAE’s industrial exports rose to Dh175 billion last year, a 49 percent increase from 2020 on the back of the National Strategy for Industry and Advanced Technology launched by the ministry, he said.
This year, the UAE plans to “increase the value of purchase agreements for local manufacturers and industrial investments by more than Dh10 billion, taking the total value of products targeted for localisation to Dh120 billion”, Dr Al Jaber told delegates on Wednesday. Read more.
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UAE: Dubai 'well positioned' to draw more foreign direct investment on strong economic growth
Dubai is expected to continue attracting foreign direct investment, despite global economic challenges, as it benefits from its position as a trade centre and its business-friendly policies, a report has said.
“Amidst the global headwinds of uncertainty, high inflation and diminishing liquidity, the task of luring FDI is a huge challenge,” Mayed Alrashdi, an Emirates NBD economist, said in the report.
This comes after Dubai's FDI inflows rose by 80 percent annually to Dh47 billion ($12.8 billion) in 2022, according to recent data by Dubai FDI, a division of the emirate's Department of Economy and Tourism.
While the value of FDI inflows last year is 47 percent higher than the annual average inflow over the past decade, it remains 28 percent below the pre-coronavirus peak of Dh65.8 billion in 2019, Emirates NBD said.
The number of announced FDI projects hit a record in 2022, rising by 89 percent annually to 619, according to the bank's report. Read more.
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QATAR: Over 300 measures identified to reduce climate change effects
The National Action Plan has provided a road map through which Qatar would fulfil its international obligations to mitigate the effects of climate change, especially in reducing greenhouse gas emissions, said a top official.
Assistant Undersecretary for Climate Change Affairs at the Ministry of Environment and Climate Change (MoECC) Eng. Ahmed Mohamed Al Sada has said that over 300 measures have been identified to reduce the actual or expected effects of climate change.
He said that these measures include various sectors in the country, such as the economic sector, infrastructure, health care, food security, water, biodiversity, and other related sectors. Read more.
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QATAR: ‘Qatar works toward diversifying digital transformation, economy’
Positioning itself as a digital transformative hub, Qatar is propelling towards modern technology and innovative country. With the recent launch of Google Cloud in Qatar, the country is moving toward sustainable development in the region.
Speaking to The Peninsula, Google Executives affirmed that Qatar will receive every support from Google to diversify and transform into a technology hub.
Ghassan Kosta, Qatar Country Manager at Google Cloud said: “As part of the Qatar National Vision 2030, we have witnessed how Qatar is working forward to diversify and transform its economy by deploying more and more tech and innovation for the benefit of the citizens. That’s why this is something that we are so interested in and were putting more effort to be able to support Qatar in their digital transformation and digital economy that they are looking forward to.” Read more.
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QATAR: Qatar, France review trade and investment ties
Minister of Finance H E Ali bin Ahmed Al Kuwari met yesterday with Minister of Economy, Finance, Industrial and Digital Sovereignty of the French Republic H E Bruno Le Maire, during His Excellency and the accompanying delegation’s visit to the French Republic. During the meeting, they discussed bilateral relations between the two countries and explored aspects of joint cooperation, especially in the economic, trade, and investment fields, and ways to develop them. Read more.
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QATAR: Experts discuss new trends in Qatar’s construction sector
Qatar’s construction and building sector provides tremendous opportunities within the framework of the Qatar National Vision 2030, aiming to transform Qatar into a diversified economy. With the growth in Qatar’s construction sector, experts discussed the trends that will be seen in the coming years during a panel discussion at Project Qatar 2023, yesterday.
The Italian Chamber of Commerce in Qatar, in association with Italian Trade Agency, German Business Council of Qatar, German Industry & Commerce Office Qatar (AHK), Turkish Businessmen Association, American Chamber of Commerce in Qatar, French Business Council in Qatar, Chamber of Commerce of Spain in Qatar, in collaboration with IFP organised a panel discussion entitled ‘New trends in Qatar Construction Sector’ which discussed sustainable practices and 3D printing in construction sector and highlighted sustainability as part of Qatar National Vision 2030. Read more.
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QATAR: ‘Attracting, developing and scaling pivotal for tech startups’
According to the latest report by World Bank, Qatar’s economy is expected to thrive by 3.4 percent in 2023, with several industries blooming in the country, especially technology. Experts, however, point out that the country is encouraging more tech-based startups with unique activities to further growth.
During a panel talk held at the Qatar Financial Centre (QFC) Tower, officials including Marwan Mahmoud, DTA Founding Board Member and CEO of MOSECO Qatar, Jamal Bdeir, Small and Medium Business Lead at Microsoft Qatar, Aditya Sinha, Head of Fintech, QFC and Seung-Wook Lyeo, COO, Vesuvio Labs discussed on the cloud infrastructure support, Venture capital, business feasibility principles, go-to-market strategy and the significance of having mentors in an early stage business. Read more.
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OMAN: Major tax cuts on electric
vehicles, auto spares from
July 1
In support of Oman’s goal of achieving net neutrality in transportation and promoting a sustainable and green economy, a number of government agencies are taking steps to enable the transition to zero-emission vehicles.
These efforts are aligned with Oman Vision 2040 and aim to balance development and environmental sustainability. The Authority for Public Services Regulation has issued regulations for electric vehicle charging points, covering technical requirements, tariff specifications, and safety measures.
Electricity distributors must comply with these regulations, and noncompliant charging points cannot be connected to the electricity network. Read more.
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OMAN: Oman sees hydrogen output
at 14-times domestic
demand by 2050
Green hydrogen production in the Sultanate of Oman is projected to escalate to a world-scale 8 million tonnes by 2050 – volumes that open up huge opportunities for export, according to a high-level official of the Ministry of Energy and Minerals.
Eng Abdulaziz al Shidhani (pictured), Director General of Renewable Energy and Hydrogen, said the targeted output is roughly 14 times the volume that Oman is anticipated to consume internally in support of its own decarbonization objectives, underscoring the predominantly export-oriented focus of the country’s future green hydrogen economy. Read more.
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OMAN: Oman extends bid deadline
for various mining projects
Oman’s Ministry of Energy and Minerals has announced the extension of the auction period for several mining projects in the country. The move is aimed at attracting more local and international companies to invest in Oman's mineral sector and to promote economic growth in the country.
The auction process was initially launched in March 28, 2023, with a deadline of May 28, 2023, for interested companies to submit their bids. However, due to the high level of interest shown by local and international investors, the Ministry of Energy and Minerals has decided to extend the deadline for submitting bids until July 30, 2023. Read more.
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OMAN: Investment in Oman’s tourism sector to reach OMR3 billion by 2025
The total investments in Oman's heritage and tourism sector is expected to reach OMR3 billion for 2021-2025, the Ministry of Heritage and Tourism said.
Also, the number of hotel rooms in Oman is expected to reach 33,000 by the end of 2025, the ministry said adding that it aims to increase the share of the sector’s contribution to the gross domestic product (GDP) to OMR920 million, or 2.75 percent to 3 percent of GDP, by 2025. The contribution of the tourism sector to GDP, at constant prices in 2021 reached 2.4 percent, according to the statistical data issued by the NCSI.
This was stated by the Director of the Oman Vision 2040 Office at the Ministry of Heritage and Tourism (MHT). He said heritage and tourism sectors in the Sultanate of Oman has achieved high rates in their annual plans, which are consistent with Oman Vision 2040 objectives. Read more.
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KUWAIT: Kuwait last among Gulf countries on MEED’s list of projects data
Kuwait ranks last among the Gulf Cooperation Council countries of the MEED magazine’s list of ongoing data of planned and unanchored projects, as the value of projects under implementation is $18 million, and planned and unanchored projects are worth $25 million, reports Al-Anba daily. The UAE ranked first with projects under implementation worth $746 million, and others planned and unanchored at a value of $433 million, followed by Saudi Arabia with $329 million and $368 million, respectively. Read more.
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KUWAIT: Kuwait’s exports of high-quality oil derivatives being enhanced
The Ministry of Oil said Monday, that the Al-Zour refinery is one of the largest projects in the oil sector and a fundamental pillar of the Kuwait Petroleum Corporation’s strategy for the year 2040, given the major and pivotal role assigned to it in shaping the future of the oil industry in the country. The Director of Public Relations and Information at the Ministry of Oil, Sheikha Tamader Khaled Al-Ahmad Al-Sabah, explained in a panel discussion organized by the ministry on Al-Zour Refinery that the refinery enhances Kuwait’s exports of high-quality oil derivatives that conform to international standards. Read more.
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KUWAIT: Kuwait expected to record lowest growth in Gulf
The Economist Intelligence Unit (EIU) stated in a recent analysis that the Middle East and North Africa (MENA) region recorded a strong performance in 2022 in terms of attracting foreign direct investment (FDI), expecting the recovery of capital flows to the region to be reasonable in 2023 and 2024, reports Al-Rai daily. The unit believes the macroeconomic background will be supportive of FDI flows for most of the region’s economies, and suggested that more than half of the region’s countries will record average economic growth rates higher than 3 percent during the same period.
The unit expects Kuwait to record the lowest economic growth in the Gulf during this year and the following years, as the figures issued by the “Economist Intelligence” indicates that the average real Kuwait GDP growth will reach 1.9 percent during this period, while the UAE will record the highest rate for the same period by 4 percent followed by Qatar 3.7 percent, then Bahrain 3.5 percent, then Oman 3 percent, then Saudi Arabia 2.4 percent. Read more.
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BAHRAIN: Bahrain real estate deals surpass pre-Covid levels in first quarter of 2023: Report
Real estate transactions in Bahrain totaled 6,336 in Q1 2023, according to the latest data by the Survey and Land Registration Bureau (SLRB), showing a 14.5 percent year-on-year increase, as well as a 12 percent quarter-on-quarter increase.
The trading value, however, is reported as being BD243,144,972 ($645,019,358 approximately), showing a 17 percent decrease on the same period last year. Read more.
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GCC: GCC entrepreneurs praise region’s startups growth
Gulf entrepreneurs praised the radical transformations taking place in the region’s markets, and the great development achieved by startups and medium-sized companies in a short period of time, in terms of entrepreneurship, keeping pace with the technological revolution, and keeping pace with the concept of digitization.
They were speaking at a panel discussion titled “GCC Entrepreneurs: Middle Eastern Unicorns,” on the third and final day of Qatar Economic Forum.
They called for the expansion of initiatives to develop entrepreneurial skills, including business incubators and accelerators, and financing facilities, with the aim of enabling owners of small and medium enterprises to expand locally and in the Gulf, and enter new markets. Read more.
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GCC: Gulf space sector attracts private companies, including Bezos' Blue Origin
Three Arab astronauts were aboard the International Space Station (ISS) Monday in a historic first as Gulf countries push collaborations with major private space agencies to develop their fledgling space industries. Their financial investments are attracting the interest of private space companies that see massive potential.
Saudi Arabia launched first-time astronauts Rayanah Barnawi, the kingdom’s first female astronaut, and Ali AlQarni into space on Sunday as part of commercial agency Axiom Space’s private astronaut mission, using the Dragon spacecraft atop the Falcon 9 rocket, both manufactured by Elon Musk’s SpaceX. They joined UAE astronaut Sultan Al-Neyadi, who got there in the same reusable rocket in late February.
Such endeavors are piquing the interest of global space companies. Roman Chiporukha, the co-founder of luxury adventure company SpaceVIP, said it’s not only the billions of dollars in investments some Gulf governments are making that signals opportunity. The already evident results of their long-term space education strategies are also attractive. Read more.
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