Week from 7 to 14 September 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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Championing Europe's SMEs: Commission provides new relief to boost the competitiveness and resilience of SMEs
The European Commission has announced a series of measures aimed at supporting Small and Medium-sized Enterprises (SMEs), which make up 99% of Europe's businesses. The SME Relief Communication introduces new rules on late payments in commercial transactions, setting a stricter 30-day maximum payment limit and providing legal protections against bad payers. Additionally, a proposed Head Office Tax System will simplify cross-border tax compliance for SMEs. The Commission also plans to ease regulatory and administrative burdens through the appointment of an EU SME Envoy and the launch of a Once-Only Technical System for simpler administrative procedures. Other initiatives include boosting investment opportunities, promoting skills training, and reviewing SME definitions to further facilitate their growth. The measures aim to enhance the competitiveness and resilience of SMEs in the EU's Single Market. Read more.
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Taxation: new proposals to simplify tax rules and reduce compliance costs for cross-border businesses
The European Commission has introduced the "Business in Europe: Framework for Income Taxation" (BEFIT) to simplify tax rules for large, cross-border businesses operating within the EU. BEFIT aims to consolidate tax bases across company groups into a single set and could reduce tax compliance costs by up to 65%. The proposal is built on previous OECD/G20 tax agreements and replaces earlier EU corporate tax base proposals. The new rules will be mandatory for groups with a combined annual revenue of at least €750 million and will be optional for smaller businesses. The package also includes harmonized transfer pricing rules to increase tax certainty and reduce aggressive tax planning. The BEFIT proposal is expected to come into force on July 1, 2028, and the transfer pricing changes on January 1, 2026. Read more.
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Simplifying EU rules for citizens and business: findings from the 2022 Annual Burden Survey
The European Commission has released its 2022 Annual Burden Survey, detailing efforts to streamline and modernize EU regulations. In its first year of implementing the 'one in, one out' approach, the Commission applied the strategy to 52 legislative proposals, aiming to offset new compliance costs by reducing existing burdens, leading to an expected overall administrative cost reduction of EUR 7.3 billion. The report also highlights achievements under the Regulatory Fitness and Performance (REFIT) programme across multiple policy areas and outlines the Commission's response to the Fit for Future Platform's recommendations on various initiatives. The Commission invites public suggestions for further simplification through the 'Have Your Say: Simplify!' portal. Read more.
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Summer 2023 Economic Forecast: Easing growth momentum amid declining inflation and robust labour market
The European Commission has revised its economic forecasts for the EU and the euro area, projecting slower growth and slightly reduced inflation. The EU economy is now expected to grow by 0.8% in 2023 and 1.4% in 2024, down from earlier estimates. Inflation is predicted to be 6.5% for 2023 and 3.2% for 2024 in the EU. Factors such as high consumer prices, weak domestic demand, and tightened monetary policy have contributed to the subdued economic activity. While the labor market remains strong, the reduced availability of bank credit is impacting the economy. Global conditions offer little support, and geopolitical tensions, particularly Russia's war against Ukraine, add further uncertainty. The Commission also highlighted climate risks as an ongoing concern. Read more.
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Eurobarometer: Europeans approve measures taken to tackle the energy crisis, to promote sustainability and to support UkraineEurobarometer: Europeans approve measures taken to tackle the energy crisis, to promote sustainability and to support Ukraine
A Flash Eurobarometer survey reveals strong support among Europeans for EU actions taken over the past year to mitigate energy price volatility, enhance energy security, and support the green transition. The survey also shows broad approval for the EU's response to Russia's invasion of Ukraine. Key findings include 86% supporting European-level initiatives to limit the impact of rising energy prices and 85% in favor of boosting clean technologies. Additionally, 85% believe that the EU should secure its energy and economic security in light of the Ukraine conflict, and 86% support ongoing humanitarian aid to Ukraine. When asked about values, around half of the respondents feel that the EU best embodies 'respect for fundamental rights and values,' 'social equality,' and 'tolerance.' Read more.
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President von der Leyen marks the EU's commitment to the Partnership for Global Infrastructure and Investment (PGII) during the event hosted at the G20 in New Delhi
President von der Leyen spoke at a G20 event on PGII, hosted by Prime Minister Modi and President Biden, highlighting the EU's involvement in two major infrastructure projects. The first, the India-Middle East-Europe Economic Corridor, aims to connect these regions with state-of-the-art infrastructure for smoother transit of goods, green energy production, and enhanced data transfers. The project involves collaboration among the EU, the U.S., India, Saudi Arabia, and the UAE. The second project is the Trans-African Corridor, aimed at improving transport connections between the Katanga region in the Democratic Republic of Congo, Zambia's Copper Belt, and Angola's Lobito port. The EU is partnering with the U.S. to foster local investment and market access. Read more.
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Statement by President von der Leyen at Session III of the G20, 'One Future'
President von der Leyen spoke at the G20 session on the future of digital technology, emphasizing the need for global regulation of AI and the potential of Digital Public Infrastructures. She called for a new global framework to manage AI risks, akin to the IPCC for climate change, involving scientists, entrepreneurs, and innovators. She praised India's success in implementing digital public infrastructures and cited the EU's COVID-19 digital certificate as an example of a trusted, interoperable system, now adopted by 51 countries and serving as a WHO global standard. Read more.
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KSA: Saudi Arabia is ‘fastest growing nation among G20 countries’
Saudi Arabia has gained significant influence on the global stage, primarily due to its role in energy exports, international trade, and financial resources. Its G20 membership has resulted in increased transparency and policy reforms that benefit the country economically. Among its achievements are a record 8.7% GDP growth, leading the G20 in worker productivity growth, and strong rankings in digital readiness and aviation security. Financial reforms have also received high praise from the World Bank. The country has made strides in technological advancements, including 5G networks, and in women's participation in tech, which has grown from 7% to 33%. Saudi Arabia also ranked third among G20 countries in the 2023 World Competitiveness Yearbook, surpassing many advanced global economies. Overall, Saudi Arabia is positioning itself as a key player in global economic policy and as a hub for international investment. Read more.
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KSA: Saudi Arabia aims to reach carbon neutrality by 2060, says official
Saudi Arabia is focusing on sustainable development and aims to achieve carbon neutrality by 2060, according to Mohammad Albuty, CEO of Saudi National Housing Co. Speaking at the Cityscape Global real estate exhibition, Albuty revealed that the company is developing 140,000 housing units to meet the demand from the country's young population. The plans include the concept of the "15-Minute City" to reduce carbon footprint by making all essential services walkable within 15 minutes. Several significant agreements were also signed at the event, including investments in tourism and residential towers, aligning with the goals of Saudi Vision 2030 and the National Tourism Strategy. The event serves as a global platform for high-profile projects and investment opportunities in Saudi Arabia. Read more.
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KSA: Saudi national funds inject $3.7bn in financing to boost local economy
Saudi Arabia's National Development Fund (NDF) and its affiliated institutions have provided $3.7 billion in financing during H1 2023 to bolster various sectors, including industry, tourism, culture, and human resources. Industrial development received $426 million, with a focus on large-scale industrial firms. The Tourism Development Fund disbursed $35 million, and the Cultural Development Fund issued guarantees worth $8 million. The Human Resources Development Fund channeled $1.2 billion into programs, facilitating the employment of almost 199,000 Saudis in the private sector. The Small and Medium Enterprises Bank extended $1.4 billion in guarantees, and the Social Development Bank disbursed $1 billion to individuals and small establishments. These financial efforts align with the broader objectives of Saudi Arabia's Vision 2030. Read more.
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KSA: Saudi Infrastructure Expo attracts global innovators to RiyadhThe Saudi Infrastructure Expo has attracted over 275 companies from 20 countries to showcase their products, services, and innovations in Riyadh. Organized by the Saudi Contractors Authority and dmg events, the expo is part of Saudi Arabia's trillion-dollar infrastructure initiative. The event features eight country pavilions and focuses on topics like smart investment, sustainable growth, and driving net-zero initiatives in infrastructure development. The expo serves as a platform for local and international companies to collaborate and share expertise, aiming to foster investment and networking in the Kingdom's contracting industry. The event runs until September 12 and is expected to promote innovation and investment in the sector.
Read more.
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KSA: Saudi Arabia issues over 36,000 certificates of origin in August
In August, Saudi Arabia's Ministry of Industry and Mineral Resources issued 36,293 certificates of origin to boost the country's export sector, showing an increase from 34,926 certificates issued in July. These certificates validate the national origin of exported goods and are essential for international trade. The ministry's issuance system accommodates a wide array of economic actors, including farmers, fishermen, individual entrepreneurs, and craftsmen. It also offers four different types of certificates to cater to various export scenarios, including specific versions for GCC and other Arab countries, as well as preferential and non-preferential models. Read more.
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KSA: KAUST’s new strategy to accelerate Saudi Arabia’s sustainability drive: Top official
The King Abdullah University of Science and Technology (KAUST) in Saudi Arabia has unveiled a new strategy aimed at accelerating the country's progress towards sustainability and renewable energy goals. In an interview, Ian W. Campbell, interim vice president at KAUST, stated that the university plans to replace 50% of its demand for oil and gas with renewable energy by 2040 and aims to be net zero by 2060. The strategy aligns with Saudi Arabia's broader Vision 2030 and Saudi Green Initiative.
The university is partnering with NEOM, Saudi Arabia's $500-billion megacity project, to develop Shushah Island, which will become the world's largest coral garden. The collaboration also extends to climate, energy, and livability projects. Read more.
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UAE: Seven ways UAE workers can invest end-of-service benefits for retirement
The UAE has introduced an optional retirement savings plan for employees in the private and free zone sectors, aimed at allowing workers to invest their end-of-service benefits for long-term wealth. Overseen by the Securities and Commodities Authority and the Ministry of Human Resources and Emiratisation, the scheme offers various investment options. End-of-service gratuities, which are lump-sum payments made to employees after at least one year of service, will be covered under this new system. The move comes as companies in the UAE are focusing on helping workers bridge their retirement savings gap, especially after the financial challenges posed by the Covid-19 pandemic. The new plan is part of broader efforts to make the UAE's labor market more attractive and secure, and it aligns with other recent reforms like new visa programs and a mandatory unemployment insurance scheme. Read more.
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UAE: UAE working to develop a 'strong and sustainable' tax ecosystem
The UAE is working to create a robust and sustainable tax ecosystem, emphasizing international cooperation to achieve its goals. Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, spoke about the UAE's commitment to financial and tax transparency during a global taxation event. The UAE joined the Base Erosion and Profit Shifting (BEPS) framework in 2018 and introduced a 9% federal corporate tax on June 1 this year. This aligns with the G7 agreement on a global minimum tax rate of 15% to curb tax competition between countries. UAE officials highlighted the importance of international cooperation for building a strong and sustainable tax system. Read more.
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UAE: UAE's new commercial agencies law expected to improve business competitivenessThe UAE has updated its commercial agencies law to create a more business-friendly environment and attract both domestic and foreign investment. The new Federal Decree Law No. (3) of 2022 replaces a 40-year-old original law and aims to diversify the economy, improve ease of doing business, and boost foreign direct investment. The law now allows 100% foreign ownership of companies, reduces visa restrictions, and provides arbitration as a way to resolve commercial agency disputes. It also expands the types of companies that can act as registered commercial agents to include public joint-stock companies with at least 51% national capital. The UAE aims to attract Dh550 billion ($149.7 billion) in foreign direct investment by 2030 and Dh1 trillion by 2051. The law has been praised for balancing the rights and obligations of all stakeholders and for offering more legal clarity and flexibility.
Read more.
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UAE: Dubai's non-oil economy maintains 'robust' momentum in August with employment up
Dubai's non-oil private sector economy continued to expand in August, although at a slightly slower pace than previous months, according to the S&P Global purchasing managers' index (PMI). The PMI reading dropped to 55 in August from 55.7 in July but remained above the neutral 50 mark, indicating economic expansion. The rate of job creation reached an eight-year high, and business confidence was strong. The growth was supported by increased new orders in sectors like construction, retail, and tourism. Despite rising input costs, firms were less inclined to offer discounts, leading to a slower rate of selling price discounting. Economic conditions, increased tourism, and strong new work inflows are expected to continue driving growth. Dubai's economy grew by 2.8% in Q1 2023 and is forecasted to grow by 3.5% for the year. Tourism is also on the rise, exceeding pre-pandemic levels in the first half of the year. Read more.
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UAE: Majid Al Futtaim opens Launchpad X concept store to boost local start-ups
Majid Al Futtaim, Dubai's major private sector company and the Middle East's largest mall operator, has launched Launchpad X, a concept store aimed at boosting local start-ups. Located in City Centre Mirdif, the store features local brands selected from the company’s launchpad accelerator program, showcasing innovation, creativity, and growth potential. The initiative aims to connect these start-ups with global market opportunities via the company's extensive mall network. Fuad Sharaf, the managing director of UAE shopping malls at Majid Al Futtaim Properties, stated that the project aims to be a catalyst for regional economic development and innovation. Last month, the company reported a 74% annual increase in net profit to Dh1.7 billion ($463 million) for the first half of the year, with revenues rising 5% to Dh18.9 billion. The launchpad program, initiated in 2022, has already supported numerous entrepreneurs, including nearly 50% female winners. Read more.
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UAE: UAE among leading countries of solar use for energy needs
The United Arab Emirates has become the world's second-largest consumer of solar energy per capita, trailing only Australia, according to data from the Statistical Review of World Energy. As part of its green energy transition and commitment to reach net-zero emissions by 2050, the UAE has invested heavily in clean energy projects. These include the world's largest solar plant in Abu Dhabi's Al Dhafra region and the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The UAE Cabinet recently updated the UAE Energy Strategy 2050 and introduced a National Hydrogen Strategy, with plans to invest up to Dh200 billion ($54.4 billion) by 2030. Last week, an agreement was signed for the sixth phase of the world's largest single-site solar photovoltaic power plant, estimated to cost Dh5.51 billion ($1.4 billion), as part of the UAE's Net Zero by 2050 strategy. Read more.
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QATAR: Qatargas changes name to QatarEnergy LNG
QatarEnergy has announced that its subsidiary Qatargas will be renamed as QatarEnergy LNG. This rebranding aims to emphasize Qatar's significant role in meeting global energy needs, particularly through liquefied natural gas (LNG), which is considered the cleanest fossil fuel. The Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, highlighted that the change reflects the evolving landscape of Qatar’s energy sector and its focus on LNG as a crucial source of energy for the future. The minister praised Qatargas for its pioneering role in the LNG industry over the past 39 years and expressed optimism that the new brand name will carry this legacy forward while enhancing Qatar’s global position in the energy market. Read more.
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QATAR: Qatar’s financial wealth expected to grow by 5.1% to reach $388bn by 2027
According to a report by Boston Consulting Group (BCG), Qatar's financial wealth is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.1%, increasing from $302 billion in 2022 to $388 billion by 2027. Ultra High Net Worth (UHNW) individuals, worth more than $100 million, currently contribute 38% of the country's wealth, a figure projected to rise to 40% by 2027. Equities and investment funds make up the largest asset class, accounting for 48% of total personal wealth. The report also notes that real assets in Qatar are set to grow by 5.1% per year to $341 billion by 2027, while liabilities are expected to increase by 2.6% per year to $38 billion over the same period. The growth signifies Qatar's strong economic resilience and thriving entrepreneurial ecosystem. Read more.
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QATAR: QC, Portugal Trade & Investment Agency review enhancing cooperation
he Qatar Chamber (QC) met with Portuguese representatives to discuss enhancing business cooperation between Qatari and Portuguese companies. The meeting involved QC Second Vice-Chairman Rashid bin Hamad Al Athba and Manuel Couto Miranda of Portugal's Trade & Investment Agency, as well as the Portuguese Ambassador to Qatar. Both parties expressed interest in fostering bilateral investments and are considering a memorandum of understanding to facilitate this. Al Athba highlighted Qatar's investment-friendly climate, while Miranda invited Qatari businessmen to explore opportunities in Portugal, especially in sectors like energy, construction, and food products. Miranda also promoted the 'Web Summit 2023' in Lisbon and confirmed Portuguese participation in the 2024 summit to be hosted by Qatar. Read more.
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QATAR: Experts discuss role of hydrogen in race to net zero at Al-Attiyah Foundation CEO Roundtable
At the Al-Attiyah Foundation CEO Roundtable in Doha, industry leaders and experts discussed the potential and challenges of using hydrogen as a clean fuel. The focus was on "green" hydrogen, produced using renewable energy, and "blue" ammonia, a low-carbon industrial fuel. Qatar is particularly poised to be a leader in this area, with plans to build the world’s largest "blue" ammonia facility. The Ammonia-7 project, slated to be operational by Q1 2026, will also feature integrated carbon capture and storage (CCS) facilities and renewable electricity supply. Abdullah bin Hamad Al-Attiyah, Chairman of the Al-Attiyah Foundation, emphasized the critical role hydrogen could play in the global energy mix and noted that the Gulf region has the renewable resources to become a major producer and exporter of hydrogen. Read more.
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QATAR: Qatar, Italy review bilateral relations
Minister of Finance, H E Ali bin Ahmed Al Kuwari met with Minister of Economy and Finance of the Italian Republic, H E Giancarlo Giorgetti, who is currently visiting the country within the delegation accompanying the Italian Prime Minister. During the meeting, the two sides discussed bilateral relations in the joint investment and financial fields and prospects for enhancing and developing them, in addition to several topics of mutual interest. Read more.
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QATAR: Construction sector to grow over 4% CAGR by 2029
According to a report by Research and Markets, Qatar's construction equipment market is expected to grow to 8,596 units by 2029, with a CAGR of 4.54%. Material handling equipment, particularly cranes, dominate the market, driven by investments in housing, warehouse expansion, and renewable energy projects. The demand for tower cranes has surged due to the construction of tall buildings and stadiums related to the FIFA World Cup hosted last year. Qatar's national vision aims to boost the construction market further, with large public infrastructure projects like a $40 billion integrated rail system and a $7.4 billion mega port. The country's 2023 budget includes 22 new projects worth $2.6 billion, focusing on schools, hospitals, and healthcare centers. In March 2023, Qatar's Public Works Authority awarded a $67 million construction contract for road and infrastructure works, set to complete by Q3 2025. Read more.
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QATAR: ‘Qatar is set to lead innovation in region’
Qatar is making strides in adopting technology and innovation, focusing especially on Artificial Intelligence (AI) to diversify its energy-based economy into a knowledge-based society. Chady Haddad, Data & AI Lead at Microsoft Middle East, highlighted Qatar's early investment in AI and its practical applications in healthcare, smart cities, and major events like the FIFA World Cup 2022. Microsoft is supporting Qatar's tech journey with a focus on people, technology, and processes, including training programs and data centers in the country. Dr. Chawki Tawbi, CTO, Data & AI Lead at Google Cloud Qatar, also noted the accelerating AI breakthroughs in the region, expected to contribute $55 billion to the GDP by 2030. Both Microsoft and Google are committed to fostering innovation and overcoming challenges in Qatar. Read more.
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QATAR: ‘Oil and gas a cornerstone of Qatari economy’
Adam Stewart, Head of Qatar at Knight Frank, stated that while the oil and gas sector will continue to be crucial for Qatar, the government is actively working to diversify the economy through renewable energy and tourism. Post-FIFA World Cup 2022, rental rates are correcting to pre-event levels, although landlords had initially tried to maintain higher rents. Lusail city is emerging as a strong competitor within the GCC, attracting government ministries and international occupiers. Qatar's tourism sector is also growing, with a 206% increase in visitor numbers this year and hotel construction booming. Stewart expressed optimism that Qatar can achieve its tourism goals in the next six years, aided by its sovereign wealth, new marketing efforts, and infrastructure development. Read more.
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OMAN: State public revenues at RO 7.1 billion
As of July 2023, the State's public revenue declined by 10% to RO 7.183 billion, compared to RO 8.003 billion in the same period in 2022, according to the Fiscal Performance Bulletin by the Ministry of Finance. Net oil and gas revenues also saw decreases of 3% and 35%, respectively. However, current revenue showed a slight increase of 1%. Public spending decreased by 7% to RO 6.481 billion. Development expenditure for ministries and government units was RO 491 million, making up 55% of the total allocated development spending for 2023. The State's budget registered a surplus of RO 702 million, down from a surplus of RO 1.019 billion in the same period the previous year. Read more.
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OMAN: E-commerce regulations: Oman to set up centralised database of operators
The Sultanate of Oman has unveiled a new regulatory framework aimed at bolstering its National Ecommerce Strategy. Announced on September 10, 2023, by Mubarak bin Mohammed al Dohani, Director General of Commerce at the Ministry of Commerce, Industry and Investment Promotion, the framework is among 30 initiatives designed to fuel e-commerce growth in the country. The new regulations will establish a centralized database for e-commerce practitioners, enhance consumer protection, and tackle fraud. The framework includes a licensing system divided into two categories: one for Omani citizens aged 18 and above and another for commercial companies. The regulations were necessitated by issues such as undelivered goods and counterfeit products during the pandemic's "Shop from Your Home" initiative. Developed in collaboration with over 15 government entities and the private sector, the regulations will come into effect 90 days after their official publication. Read more.
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OMAN: G20 Summit participation to help strengthen ties
The Sultanate of Oman participated as a guest of honor in the 18th G20 summit, hosted by India, aiming to strengthen relations with G20 member states and explore broader areas of collaboration in tourism, health, agriculture, alternative energy, education, and digital transformation. Pankaj Khimji, Advisor to the Ministry of Commerce, Industry and Investment Promotion, said the summit provided Oman the opportunity to understand global decision-making mechanisms and further its Vision 2040 objectives, especially in shifting towards alternative energy. Oman took part in over 200 meetings, including 9 ministerial ones, and its initiatives in sectors like agriculture, mining, tourism, clean energy, and green hydrogen were well-received. Read more.
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OMAN: Student visionaries invited to become future energy leaders
The 2nd edition of the Future Energy Leaders Program is set to take place at the Green Hydrogen Summit 2023 in Muscat, Oman, from December 12 to 15. The program aims to bridge the gap between academia and the emerging green hydrogen industry by offering global students a platform for innovative thinking and problem-solving. Students can submit their abstracts until October 1, 2023, for the opportunity to present their research to industry experts. Oman aims to establish itself as the Green Hydrogen hub of the Middle East, focusing on green hydrogen as a key future energy source. The summit and program are supported by leading energy companies and are part of Oman's efforts to move towards a sustainable energy future. Read more.
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OMAN: Oman targets 3-fold jump in wheat production to 7,000 tonnes
The Ministry of Agriculture, Fisheries and Water Resources in Oman is aiming for a three-fold increase in wheat production to 7,000 tonnes in 2023, up from 2,167 tonnes in 2022. This ambitious target is motivated by three objectives: enhancing food security, promoting sustainable agriculture, and creating new income opportunities for Omani farmers. To achieve this, land allocation for wheat farming has more than doubled to 6,000 acres, and about 1,900 farmers are expected to contribute to this increase. The Ministry has earmarked a budget of RO 5 million for 2023 to support R&D, expand wheat cultivation in suitable areas, and bolster marketing strategies in collaboration with Oman Flour Mills. In addition, the Ministry is offering financial assistance and technical guidance to farmers, encouraging the use of sustainable practices like drip irrigation and precision farming. Read more.
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OMAN: Oman’s salt basins: Ideal for underground hydrogen storageA symposium on hydrogen storage potential in Oman was held on September 13, sponsored by Green Hydrogen Summit Oman and the Oman Hydrogen Centre. Nasser al Rizeiqi from Oman's Ministry of Energy and Minerals highlighted Oman's geologically favorable conditions for hydrogen storage, such as abundant salt caverns and porous rock formations. His research suggests hydrogen could meet increasing global energy demands if safe and cost-efficient storage methods are developed. Salt caverns in particular were identified as suitable for hydrogen storage, with two salt domes showing significant potential. The symposium also featured insights from the Hystories project, emphasizing the technical and economic aspects of hydrogen and ammonia storage. The event reinforces Oman's commitment to becoming a hub for clean energy research and development.
Read more.
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OMAN: Oman’s startup ecosystem valued at $ 301 million
A recent report from The Startup Genome values Oman's startup ecosystem at $301 million and identifies e-commerce, clean technology, and fintech as the most promising sectors. The Omani e-commerce market is expected to reach $868 million by 2025, and investments in green hydrogen could hit $140 billion, aligning with Oman's Net Zero by 2050 commitment. The Central Bank of Oman, in collaboration with Omantel, is supporting fintech startups through accelerators, with tech startups receiving $28 million in venture capital from 2018 to 2022. Oman also ranks high in the region for affordable talent and funding. The 2022 Programme for Promising Omani Startups aims to support innovation and is backed by multiple government entities, including the Ministry of Higher Education and the Ministry of Economy. Read more.
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KUWAIT: Developing the creative economy will be the focus of ZGI’s next chapters, says Al Roudhan
Zain recently held its ZGI Demo Day ceremony, the final stage of its 7th season of the Zain Great Idea tech startup accelerator program. The event, attended by industry leaders and venture capital firms, served as a platform for startup owners to showcase their regional expansion plans. Zain Kuwait CEO Eaman Al Roudhan emphasized the program's 13-year history of supporting entrepreneurs, and the success it has had in creating a comprehensive ecosystem for startups. The program members participated in regional accelerators in Dubai, Riyadh, and Cairo, gaining valuable market insights. Looking ahead, Zain will be the official Kuwait Country Partner for Beban, a regional entrepreneur reality TV show. Through this partnership, 40 Kuwaiti entrepreneurs will undergo a bootcamp to prepare for the TV show, with only 5 being shortlisted for equity investments. The program aims to support youth, entrepreneurship, and innovation both locally and across the Arab region. Read more.
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KUWAIT: Kuwait’s financial wealth to grow by 2.7%
According to Boston Consulting Group's (BCG) 'Global Wealth Report 2023,' Kuwait's financial wealth is expected to grow at a Compound Annual Growth Rate (CAGR) of 2.7%, reaching USD 302 billion by 2027. Equities and investment funds constitute the largest asset class, making up 57% of total personal wealth in 2022. Bonds are predicted to grow the fastest, with a CAGR of 6.5% from 2022 to 2027. Ultra High Net Worth (UHNW) individuals, worth more than USD 100 million, hold about 24% of Kuwait's wealth, a trend expected to continue until 2027.
Kuwait's real assets are expected to grow by 3.3% annually to USD 257 billion by 2027, while liabilities will also grow to USD 39.6 billion by 2027. BCG's report also outlines strategies for wealth managers, emphasizing scalable client acquisition, technology integration, and strategic cost management to achieve long-term profitability. Read more.
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KUWAIT: Population surpasses pre-COVID peak
Kuwait's population grew by 8% year-over-year in the first half of 2023, reaching 4.82 million and surpassing pre-pandemic levels. The growth was fueled by both Kuwaiti and non-Kuwaiti populations, with the latter seeing a sharp 11% rise. Employment rates also increased, particularly among non-Kuwaiti workers in lower-end jobs. However, expatriate employment remains 6.6% below its 2019 peak. Kuwaitis continue to prefer public-sector jobs, causing a decline in private-sector employment among them.
The number of employed Kuwaiti citizens grew by 2.9%, with public-sector jobs increasing and private-sector jobs decreasing. Female participation in the workforce is also rising among Kuwaitis, reaching 51.7% in H1 2023. Meanwhile, low-end jobs are increasing more rapidly among expats, partially easing labor shortages from 2021-22.
Overall, the rapid population growth is expected to slow as the economy readjusts post-pandemic. Government plans aim to rebalance the population structure over time, and a decline in private-sector jobs among Kuwaitis is a concern for the country's Vision 2035 goals. Read more.
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BAHRAIN: Export Bahrain to become StartUp Bahrain’s first strategic partner
StartUp Bahrain, a leading platform for startups in Bahrain, has entered into a strategic partnership with Export Bahrain, the country's national export development arm. This collaboration aims to provide comprehensive support and resources to Bahraini startups to help them scale and access global markets. The partnership will offer knowledge-sharing, networking opportunities, and market expansion programs. Both organizations aim to foster innovation, entrepreneurship, and economic diversification in Bahrain, providing startups with the resources and knowledge they need to go global. Read more.
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GCC: PwC Middle East reaffirms nurturing young talents
PwC Middle East has successfully onboarded 481 graduates this summer, reinforcing its commitment to nurturing regional talent and building a diverse workforce. The new hires align with the firm's strategic vision called "The New Equation," which focuses on creating a future-ready team. The graduate cohort is notably diverse: over 85% are Arabic speakers, close to half are women, and over 30% are Saudi nationals. Additionally, 44 UAE Nationals have been recruited as part of the firm’s Watani Programme, aimed at developing local talent. The new hires will undergo intensive training to quickly integrate and contribute to PwC's community. Read more.
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