GCC economies set for 4.4% growth in 2025, report forecasts
Updated 18 September 2024
Nirmal Narayanan
RIYADH: The Gulf Cooperation Council is expected to see its economies expand by 4.4 percent in 2025, driven by growth in the non-oil private sector, according to a new report.
Analysis by the Institute of Chartered Accountants in England and Wales attributes this projected growth to both the rebound in oil production cuts by OPEC and the GCC’s ongoing diversification efforts.
This comes as countries across the Gulf, including Saudi Arabia and the UAE, intensify diversification efforts, with the Kingdom’s General Authority for Statistics reporting a 4.9 percent increase in non-oil sector activity in the second quarter of 2024.
The findings in the report are based on research from Oxford Economics, and Scott Livermore, ICAEW economic adviser and chief economist and managing director at Oxford Economics Middle East, said: “The GCC’s proactive and strategic investment in non-oil sectors, alongside the gradual recovery of oil production, is paving the way for robust growth in 2025, where the resilience of the GCC stands out.”
The report revised the GCC growth forecast for 2024 slightly down to 2.1 percent, from its previous projection of 2.2 percent made three months ago. However, the non-energy sector is projected to grow by 4.2 percent in 2024 and 4.4 percent in 2025.
Overall, the analysis forecasts Middle Eastern gross domestic product growth at 2.1 percent in 2024, accelerating to 3.7 percent in 2025.
The report further noted that PMI readings across the region indicate strong business growth, with anticipated interest rate cuts expected to boost consumption and private investment.
It added that tourism, trade, and finance will be key sectors driving future growth.
“Domestic momentum remains strong across the region, as highlighted by higher output in PMI surveys and the coming interest rate reductions should support both consumption and private investment,” said the report.
The document added that governments in the region will continue to advance diversification plans, with sovereign wealth funds, including Saudi Arabia’s Public Investment Fund and UAE’s Mubadala, likely to remain strategic spenders.
A recent PwC analysis indicated that easing interest rates will benefit Middle Eastern economies, particularly those with currencies pegged to the US dollar.
Saudi Arabia to export industrial robots by May: Alat CEO
Updated 17 sec ago
Nirmal Narayanan
RIYADH: Saudi Arabia is preparing to export industrial robots to international markets by the end of May which are capable of performing manufacturing tasks faster than humans, an official said.
Speaking at the Private Sector Forum in Riyadh on Feb. 12, Amit Midha, CEO of Alat — a company backed by the Public Investment Fund —highlighted that these machines will revolutionize the manufacturing and assembling processes, not just in the Kingdom but globally.
Midha revealed that this milestone achievement resulted from Alat’s strategic partnership agreement inked with SoftBank Group in February 2024 to form a joint venture to manufacture industrial robots within Saudi Arabia.
This development aligns with the Kingdom’s broader Vision 2030 goal to establish the country as a global hub of innovation and technology by the end of this decade.
“By May of this year, we will be exporting robots to all over the world, and they will be built in Riyadh. We are investing in a fully automated manufacturing and engineering hub which is dedicated to produce cutting edge industrial robots,” said Midha.
He added: “Imagine the robots that can program themselves. Imagine the robots that have three times to five times the speed of a normal laborer. These robots can really revolutionize how, where and what can be manufactured.”
According to Midha, these robots are going to “redefine” the traditional manufacturing sector, as these machines are going to be highly cost-effective.
“Some of the manufacturing centers developed in the last few decades will get reshaped because now the cost of robots and automation is going to be the same as hiring a person or an operator in a manufacturing facility,” he said.
Midha added that Saudi Arabia will also export laptops and personal computers to international destinations by the end of this year thanks to Alat’s $2 billion partnership with Chinese tech giant Lenovo.
“We did the groundbreaking, but within this year, we will be exporting our notebooks, the PCs, servers, not only just for our needs but on a global scenario as well,” he said.
Launched in February 2024, Alat seeks to transform global industries and create a world-class manufacturing hub in Saudi Arabia powered by clean energy.
The future of manufacturing and the role of private sector
According to Midha, the future of the manufacturing sector will be steered by advanced technologies like artificial intelligence, and the Kingdom will lead this automation journey.
“We are at a transformational moment in the global industry. AI technology is disrupting and recreating everything. Sustainability is becoming a core pillar for all things in the future. Supply chain resilience is becoming just as important as efficiency,” said Midha.
He added: “Saudi Arabia’s Vision 2030 is built on clear objectives. It aims to establish the Kingdom as a leading global hub for advanced manufacturing. The vision goes beyond the traditional industrial growth, it aims to create an integrated manufacturing ecosystem that fosters a knowledge-based economy.”
According to the Alat official, the PIF-backed firm envisions a future where manufacturing will become autonomous, intelligent, and adaptive, as well as sustainable, and future-leaning.
Midha added that Alat will transform the way traditional factories function, where manual labor limits flexibility and efficiency.
He further said that this transformation in the manufacturing sector led by Saudi Arabia will be only possible with private-sector partnerships driven by these entities’ expertise, innovation, and innovation.
Midha went on to say that Saudi Arabia is the most attractive destination for industrial investments, with the Kingdom holding mineral wealth projected at $2.5 trillion, as well as having a strategic and unique geographical location.
“Transformation is already there. The policy is fully there to support our businesses and partnerships. It is expanding across diversified sectors. Foreign direct investment is on the growth. And this is really a once in a generational opportunity,” said Midha.
He added: “This level of opportunity is unprecedented, and we are here to help you realize together. We do not have to compromise on efficiency or technology. We can bring all the factors together to compete on the global stage.”
Midha said Alat is prioritizing nine business units where private sectors can collaborate and partner, including semiconductors, smart devices, smart buildings, and smart health.
Other areas of potential collaboration are smart appliances, advanced industrials, Next-Gen Infrastructure, as well as, electrification and AI infrastructure.
“The companies that invest in Saudi Arabia today will be positioned for unprecedented growth and first-mover advantage. Our commitment to shaping the future of manufacturing goes beyond the vision, it is rooted in action. True innovation demands action not just conversation,” said Midha.
Vision 2030: Turning goals into realities
During the speech, Midha said that Saudi Arabia’s National Industrial Strategy is pivotal in turning the Kingdom’s Vision 2030 goals into reality.
The strategy aims to build an industrial economy that attracts investment, enhances economic diversification, develops the Kingdom’s gross domestic product, and increases non-oil exports.
Underscoring the role of the Saudi Industrial Development Fund in strengthening the country’s manufacturing industry, Midha revealed that SIDF disseminated SR161 billion ($42.93 billion) by the second quarter of 2024 to support industrial projects.
He added that Saudi Arabia’s National Industrial Development and Logistics Program is investing heavily in infrastructure, logistics and workforce development.
“Grand visions must be matched by tangible progress and real-world results. This spirit of action represents the Kingdom’s unwavering commitment to turning ambition into achievement. It is a declaration that the Kingdom is not merely envisioning a future shaped by innovation, it is building it, step by step, with determination and purpose,” said Midha.
He concluded: “By transforming visionary ideas into ground-breaking outcomes, the Kingdom is proving to the world that it does not just talk about change, it leads it and we are delivering on this promise. By advancing the manufacturing sector and fostering economic diversification, the Kingdom is redefining its role on the global stage.”
Saudi Arabia unveils telecom, tech, and tourism deals at LEAP 2025
Updated 25 min 25 sec ago
MOHAMMED AL-KINANI
JEDDAH: Telecom licenses designed to drive SR1 billion ($267 million) investment in Saudi Arabia were announced during LEAP 2025, as tech and tourism partnerships were also unveiled.
The conference, being held in Riyadh, saw a focus on digital innovation, sustainable luxury, and artificial intelligence adoption.
The major investment deals and strategic partnerships showcased at the event further cemented the Kingdom’s position as a regional hub for digital transformation.
CST grants 4 telecom licenses
Saudi Arabia’s Communications, Space, and Technology Commission announced on Feb. 12 the issuance of four licenses, including those for carrier service providers, telecommunication services, and non-terrestrial network operations.
The move aims to drive the development of advanced smart infrastructure, enable the latest technologies, improve service competition, and attract more investment to support growth in Saudi Arabia’s telecom sector, according to the Saudi Press Agency.
CST granted carrier service provider licenses to Water Transmission and Technologies Co., Saudi Arabia Railways, and Raqeem Smart Solutions.
The permit allows utility companies to provide excess telecommunications infrastructure capacity, such as fiber optics and towers, to licensed individual service providers.
The licenses were presented to the companies during a formal ceremony attended by Mohammed bin Saud Al-Tamimi, CST governor; Abdullah Al-Abdulkarim, president of the Saudi Water Authority; Mamdouh Al-Shuaibi, vice president of sustainability at SWA; and Omar Al-Rejraje, CST deputy governor for the regulation and competition sector.
The permit granted to WTCO will enable companies to offer services to individual license holders, optimize infrastructure, expand telecom services, and drive digital transformation.
Around 1B SAR
investments in expanding digital infrastructure in Saudi Arabia at #LEAP25, through four licenses: Carrier Service Provider License, and the provision of telecommunication services and the operation services of Non-Terrestrial Networks (NTN).
Meanwhile, SAR’s license is expected to boost the telecom sector, with investments in fiber-optic cables along railway routes, extending services to remote areas through its network on northern and eastern corridors.
The authorization awarded to Raqeem is expected to attract investments and enhance telecom services for the Kingdom’s industrial infrastructure, as per SPA.
CST also granted a general class license, along with permits for providing telecom services via non-terrestrial networks and operating NTN services, to SKYFive Arabia.
The authorization, presented to the company’s CEO Mohammed Abdulrahim, allows the company to develop advanced satellite communication solutions, improving aviation connectivity in the Kingdom.
This allowance enables efficient in-flight connectivity for commercial aircraft, improving services for Saudi citizens and visitors and supporting quality of life and digital transformation.
ROSHN signs key deals for digital transformation
ROSHN Group was honored with the Top Google Cloud Customer Accelerated Growth Award. ROSHN Group
ROSHN Group, a Saudi leading multi-asset class developer and part of the Kingdom’s Public Investment Fund, has signed several memorandums of understanding as part of its commitment to digital transformation.
According to a press release, a partnership was inked with Saudi Information Technology Co. to collaborate on managed detection and response, cybersecurity advisory, and cloud services.
It also struck a deal with T2 company to advance research in emerging technology and property technology solutions and with Jahez Group to further develop smart mobility infrastructure for autonomous, electric vehicle-based delivery services.
During the conference, ROSHN Group was honored with the Top Google Cloud Customer Accelerated Growth Award, a testament to its approach to leveraging advanced cloud technologies.
Globant, Red Sea Global to focus on luxury tourism
Globant, a leading technology firm specializing in digital solutions, has teamed up with Red Sea Global to develop a digital program to enhance the visitor experience at one of the Kingdom’s major tourism projects.
According to a statement, the initiative aligns with Saudi Arabia’s Vision 2030 strategy, showcasing the nation’s commitment to sustainable and technologically advanced tourism.
The program centers around a robust, digitally enabled ecosystem integrating advanced technologies such as AI, the Internet of Things, and data analytics.
The release added that this connected visitor experience will provide intuitive, real-time interactions tailored to individual preferences.
Sultan Moraished, group head of technology and corporate excellence at RSG, said: “The Red Sea destination represents a bold vision for the future of tourism, one that combines luxury, technology, and sustainability in perfect harmony.”
Moraished added that partnering with Globant is a significant step toward creating a connected experience that will set a global standard, not just for the region but for destinations worldwide.
Federico Pienovi, chief business officer and CEO of new markets at Globant, said the partnership with RSG shows how technology can reshape tourism by focusing on the visitor, creating an ecosystem centered around convenience, personalization, and sustainability.
Accenture, Google Cloud boost AI in Saudi Arabia
Global professional services company Accenture announced on Feb. 11 that it will extend its Joint Generative AI Center of Excellence to Saudi Arabia, building on its international collaboration with Google Cloud,
The initiative aims to help organizations create new business opportunities and improve customer experiences by establishing a modern digital core and scaling generative AI agents to enhance operational efficiency and enterprise intelligence, according to a statement from Accenture.
Majid Al-Tuwaijri, Saudi Arabia chair and country managing director at Accenture, said that being ready for continuous reinvention hinges on a modern digital core to seize every opportunity rapidly.
“We are expanding our joint Accenture and Google Cloud Generative AI CoE to bring new capabilities to the region and transform how Saudi organizations can reinvent products, services and experiences,” he said.
Al-Tuwaijri added that their partnership with Google Cloud aims to help clients in Saudi Arabia accelerate business outcomes in new ways.
“We are unique because our strategy brings together key stakeholders to pioneer digital sovereignty and to develop systems that are not only secure and compliant but also resilient and future-ready,” he said.
Bader Al-Madi, general manager of Google Cloud in Saudi Arabia, said that organizations need a combination of leading technology and services expertise to successfully deploy generative AI.
He added: “With Google Cloud’s advanced capabilities and Accenture’s industry expertise, customers will have access to the resources needed to plan, deploy, and optimize generative AI projects.”
In its statement, Accenture pointed out that this expansion can help rapidly transform ideas into tangible value by combining the latest Google Cloud technologies with the services company’s industry-tested solutions and services with significant generative AI projects in production.
It added that experts from both companies will work closely with clients to identify transformative use cases and rapidly develop and scale them in production for strategic advancements.
Accenture further said that the collaboration will help enable organizations to harness the power of generative AI while maintaining data security and compliance through Google’s Dammam cloud region.
Qatar’s economy to expand 2% as LNG, tourism drive growth, IMF says
Qatar’s banking sector remains strong, with banks well-capitalized, liquid, and profitable
IMF’s outlook suggests that inflation will remain at a moderate level in the coming years
Updated 28 min 19 sec ago
REEM WALID
RIYADH: Qatar’s real gross domestic product is projected to grow by 2 percent in 2024-25, supported by public investment, liquefied natural gas spillovers, and a strong tourism sector, the International Monetary Fund said.
The IMF expects the Gulf nation’s medium-term growth to average 4.75 percent, driven by a substantial increase in LNG production and early benefits from reforms under the Third National Development Strategy.
The fund also said that Qatar’s inflation is expected to ease to an average annual rate of 1 percent in 2024 before stabilizing at around 2 percent over the medium term, reflecting broader economic trends rather than short-term price fluctuations.
The country’s annual inflation rate slowed to 0.24 percent in December from 0.95 percent in November, according to Consumer Price Index data released in early February. The IMF’s outlook suggests that inflation will remain at a moderate level in the coming years.
“With lower hydrocarbon prices, both the current account and fiscal surpluses narrowed in 2023, to 17 percent of GDP and 5.5 percent of GDP, respectively. The twin surpluses moderated further in 2024,” the statement said.
“Over the medium, as Qatar’s LNG production expands massively, both the current and fiscal accounts will likely remain in surpluses, albeit declining as a share of GDP, as hydrocarbon prices are projected to fall,” it added.
Qatar’s banking sector remains strong, with banks well-capitalized, liquid, and profitable. The capital adequacy ratio stood near 20 percent, while the return on equity reached 14.5 percent in the third quarter of 2024, said the IMF.
Non-resident deposits have declined significantly following measures by the Qatar Central Bank to reduce banks’ net short-term foreign liabilities, with lenders also extending the average maturity and diversifying their foreign funding sources.
“Qatar has started to implement the ambitious Third National Development Strategy to build a more diversified, knowledge-based, and private sector-driven economy. Guided by NDS3, reform momentum has strengthened significantly, including to attract and retain high-skilled expatriate workers, foster innovation, promote public-private partnerships, and further improve the business efficiency,” the statement said.
“Qatar is well positioned to leverage digitalization and AI (artificial intelligence) for productivity gains, and the nation’s climate agenda is advancing,” it added.
Inflation data released in February showed Qatar’s average inflation rate for 2024 stood at 1.13 percent, down from 2.85 percent in 2023 and 5 percent in 2022, reflecting a sustained downward trend.
Saudi Cabinet approves MoU with Turkiye in the field of central banking
Updated 12 February 2025
Nirmal Narayanan
RIYADH: The Saudi Cabinet has approved a memorandum of understanding with Turkiye designed to strengthen cooperation in central banking between key financial institutions in the countries.
Crown Prince Mohammed bin Salman chaired the Cabinet on Feb. 11, during which the Kingdom’s economy and the progress of various government-led initiatives were discussed, the Saudi Press Agency reported.
The approval of the MoU between the central banks of Saudi Arabia and Turkiye highlights the progress of economic and trade ties between the two nations.
In December, Saudi Arabia’s Cabinet approved the signing of an MoU between the Kingdom and Turkiye to boost cooperation in the field of energy.
Turkiye is a key destination for Saudi Arabia’s non-oil goods, with the Kingdom sending outbound shipments worth SR960.4 million ($256.09 million) to the West Asian nation in November.
Hakan Fidan, foreign minister of Turkiye, visited the Kingdom in January, where he met his Saudi counterpart, Faisal bin Farhan, and discussed ways to develop ties in various sectors to increase trade volume.
An MoU was also approved by the Cabinet to enhance cooperation in the financial sector between the Saudi Ministry of Finance and the Qatari Ministry of Finance.
It also gave the green light to an MoU between the Saudi General Authority for Foreign Trade and Maldives’ Ministry of Economic Development and Trade to strengthen commercial ties.
An additional MoU approved by the body was between the Saudi Ministry of Economy and Planning and the Omani Ministry of Economy to enhance cooperation between both sides.
The Cabinet also praised the continuing economic diversification efforts in the Kingdom, particularly the launch of the King Salman Automobile Manufacturing Complex.
The initiative is expected to boost the economic contribution of the non-oil sector to the Kingdom’s gross domestic product and support the National Industry and Logistics Development Program.
The body also commended the completion of the Financial Sustainability Program’s executive plan, which seeks to enhance Saudi Arabia’s spending efficiency, develop effective revenue streams, and bolster the Kingdom’s economic resilience under Vision 2030.
Saudi fintech unicorn Tabby doubles valuation to $3.3bn after $160m funding boost
Updated 12 February 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s first fintech unicorn Tabby has doubled its valuation to $3.3 billion following the successful closure of a $160 million series E funding round.
The round was led by Hong Kong-based Blue Pool Capital, and Hassana Investment Co., the funding arm of Saudi Arabia’s General Organization for Social Insurance, with participation from STV and Wellington Management.
This latest investment makes Tabby the most valuable fintech company in the Middle East and North Africa.
The company claims to have doubled its annualized transaction volumes to over $10 billion since its last $200 million series D funding round in 2023, which secured its unicorn status — a designation for startups valued at $1 billion or more without a stock market listing.
Under the National Unicorn Program, also known as Saudi Unicorns, the Kingdom aims to significantly increase the number of high-growth startups, create jobs, and boost gross domestic product.
The program, a collaborative initiative by the Ministry of Communication and Information Technology, the Mohammed bin Salman Foundation, and the National Technology Development Program, provides services such as expansion support and investor connections for promising tech startups.
“This investment allows us to accelerate our rollout of products that make managing money simpler and more rewarding for our customers. We’re focused on creating tangible impact — helping people take control of their finances with tools that are accessible, effortless and built for their everyday lives,” said Hosam Arab, CEO and co-founder of Tabby.
Tabby has expanded beyond its core buy now, pay later service with the acquisition of digital wallet Tweeq and the introduction of Tabby Card for flexible payments beyond checkout, as well as Tabby Plus, a subscription program.
In 2023, Tabby announced plans for an initial public offering in the Saudi market following its headquarters’ relocation to the Kingdom.
Founded in the UAE before moving to Saudi Arabia, the company has experienced exponential growth in alignment with the Kingdom’s strategic goals.
Tabby’s latest funding round will accelerate its expansion into financial products, including digital spending accounts, payments, cards, and money management tools.
The investment also strengthens its position ahead of its planned IPO.
Tabby currently has over 15 million registered users and more than 40,000 sellers on its platform, the company said.
