GCC cities can seize opportunity
The Gulf Cooperation Council (GCC) cities can join the world’s elite shopping destinations, significantly contributing to urban GDP and employment, improving residents’ quality of life, and enhancing offerings to tourists, according to research by Strategy& Middle East, part of the PwC network. With retail spend in the region expected to increase by 37 percent from 2022 to reach US$300 billion by 2028, Strategy&’s latest report titled “Shopping for growth: How to build an urban retail destination” identifies the strong growth potential for the sector to significantly contribute to economic development. “We see major cities in the GCC region pursuing urban transformation and expansion with mega-projects, diversifying economies with the aim of achieving growth,” said Ramy Sfeir, Partner at Strategy, and the leader of the family business, investments, and real estate practice in the Middle East.
UAE economy to grow robustly on back of real estate, tourism
The UAE continues to demonstrate robust economic growth, particularly in its non-oil sectors such as real estate, tourism, and manufacturing, according to the Organisation of the Petroleum Exporting Countries (OPEC). In its August 2024 Monthly Oil Market Report (MOMR), OPEC highlighted the steady expansion of the UAE’s economy, supported by strong domestic and international economic activities. In June, the UAE saw a slight uptick in housing, water, electricity, gas, and other fuel costs, which make up over 40 percent of the Consumer Price Index (CPI). These costs increased by 6.7 percent year-on-year, up from 6.6 percent in May. Food and beverage inflation remained relatively stable, with a marginal increase to 2.4 percent in June from 2.3 percent, in May.
Saudi Arabia approves investment law update
Saudi Arabia is levelling the playing field for domestic and international investors and easing regulatory restrictions as the Arab world’s largest economy seeks to boost foreign investments. The Council of Ministers on Sunday approved an updated investment law into one framework intended to provide investors with greater transparency, flexibility and confidence, Saudi Arabia’s Ministry of Investment said in a statement on Sunday. “The law reaffirms Saudi Arabia’s commitment to creating a welcoming and secure environment for investors, driving economic growth, and enhancing the kingdom’s position as a premier global investment destination,” Khalid Al Falih, Minister of Investment, said.
In Kuwait, Chinese official highlights growing investment opportunities
Kuwait provides an abundance of opportunities for investment across numerous fields, a Chinese official said on Thursday, citing Beijing’s increasing involvement in Kuwaiti development projects as part of broader bilateral cooperation. China looks forward to propel cooperation with Kuwait to even greater levels, which includes bolstering bilateral trade, which was worth a record high of USD 23 billion last year, Chinese National Committee of Political Consultative Conference member Cai Guanxin told Kuwaiti ambassador to Beijing Jasem Al-Najem during talks. The Kuwaiti envoy spoke of the “solidity” of bilateral relations, citing economic and cultural ties as the ones to have seen the most tangible growth, he said.
| Kuwait | |||
|---|---|---|---|
| Description | 2022 | 2023 | 2024 |
| GDP (USD bn) | 182.5 | 161.78 | 160.4 |
| GDP per Capita (USD) | 37620 | 326400 | 31720 |
| Growth Rate (% of GDP) | 6.1 | -2.2 | -1.4 |
| Inflation rate (%) | 4 | 3.6 | 3.3 |
| Unemployment rate (Kuwaiti only % of work force) | 2.2 | 2.124 | N-A |
| Current account balance (% GDP) | 34.5 | 32.8 | 30.1 |
| Population data | |||
| Kuwaiti nationals | 1488716 | 1517076 | 1545781 |
| Expats | 2897001 | 3276492 | 3367490 |
| Total | 4385717 | 4793568 | 4913271 |