Steady outlook for Dubai’s economy this year
Gulf: Dubai’s economy started 2022 on a strong note, posting an annual gross domestic product growth of 5.9 percent, according to preliminary data by the Dubai Statistics Centre.
The fastest-growing sectors in the first quarter were hospitality, and transport and storage, which expanded 47 percent and 40 percent, respectively, off the low base of the first quarter of 2021, when many travel restrictions were still in place.
The strong performance of the tourism sector continued into the second quarter, with total visitor numbers reaching 6.2 million in the first five months of the year, 14 percent below pre-coronavirus levels.
Hotel occupancy in Dubai increased to 73.1 percent in May this year, compared with 58.5 percent a year ago, and revenue per available room (RevPAR) — an industry benchmark — rose 46 percent, year on year, even as the supply of rooms grew by 9 percent during the period.
The real estate services sector, surprisingly, slowed in the first quarter of this year, expanding 1.3 percent annually after posting a growth of more than 20 percent, year on year, in 2021.
UAE-Indonesia trade deal will boost the halal economy
The UAE and Indonesia have signed a Comprehensive Economic Partnership Agreement (CEPA) that will turbocharge bilateral trade to $10 billion in the next five years. It
’s the third such deal we have signed following those with India and Israel, but the first promising to unlock the untapped potential of the halal economy.
Indonesia is the world’s fourth-most populous country and the largest economy in South-East Asia. Together with the CEPA we already signed with India – where a large share of the population is Muslim – and the trade agreement that we expect to sign soon with Turkey, we will have markets of more than 1.7 billion consumers open to us. These countries enjoy strong population growth and an expanding middle class. Each is unique in terms of preferences and potential, but nothing exemplifies the social and economic opportunities more than the halal economy.
The halal economy is on track to become one of the world’s fastest-growing sectors and could be worth $3.2 trillion by 2024. It will be driven by a growing Muslim population set to hit 2.6 billion people and represent nearly 30 percent of the world’s population by mid-century. As this high-potential network of consumers expands, competition to provide the goods and services they seek will intensify.
UAE approves 22 policies to boost economy
The UAE has approved 22 policies aimed at accelerating the country’s transition to a circular economy, as part of its push towards sustainable economic development.
The UAE Circular Economy Council’s policies will focus on four main sectors: manufacturing, food, infrastructure and transport, the government said on Sunday.
“Our current linear economy consumes valuable materials and resources without being able to benefit from them after use, which represents waste in the modern concept of sustainability,” said Mariam Al Mheiri, Minister of Climate Change and Environment and Minister of State for Food Security.
“Our approach seeks to protect our environment and to ensure the long-term economic and social prosperity of our country.”
UAE cuts red tape to attract businesses
The United Arab Emirates is cutting red tape to make it easier and quicker for digital companies to incorporate, the latest economic policy announcement as the government seeks to further diversify the economy away from oil revenues.
Trade minister Thani Al Zeyoudi, flanked by executives from many state-linked entities, on Wednesday announced the changes that include better access to the financial and banking system.
Higher oil prices support Oman’s debt management exercise
Oman’s recent liability management exercise will help reduce the government’s debt levels, generate interest cost savings, and smoothen its maturity profile, said S&P Global Ratings in a new report on Monday.
On June 30, Oman completed a voluntary debt buyback transaction totaling $701 million across Eurobonds maturing in 2025, 2026, 2027, 2028, 2029, 2031, and 2032. According to official calculations, this will result in cumulative interest cost savings to maturity of $232 million.
“We expect gross government debt will fall to 48 percent of GDP by year-end 2022, compared with 63 percent in 2021 and a peak of 70 percent in 2020,” Zahabia Gupta, an analyst, said.
UK, Japan to co-chair Iraq economic contact group
he UK on Monday became the co-chair, alongside Japan, of the Iraq Economic Contact Group (IECG), a body aimed at supporting the Iraqi government in enacting reforms.
The announcement was made in a statement posted by the UK embassy to Iraq, adding that G7 countries, the World Bank, and the European Union (EU) had met on Saturday to launch the joint chairing of the IECG by the UK and Japan.
The IECG was launched by the G7, EU, and the World Bank in 2020 to support the government in implementing much-needed economic reforms.
The statement also called on the Iraqi government to integrate climate change considerations into its reforms and investments. The IECG also called on the government to use increased revenue from oil exports to “revive its economic reform agenda.”