How the GCC’s expanding tourism sector
The Gulf Cooperation Council (GCC) countries have experienced a remarkable transformation in their tourism sector, recording $110.4 billion in international tourism revenue in 2023. This 28.2 percent increase from pre-pandemic levels in 2019 is a testament to the region’s rapid tourism recovery and its growing appeal among international travelers.
According to data from the GCC Statistical Centre (GCC-Stat), approximately 68.1 million tourists visited the GCC in 2023, reflecting a 42.8 percent growth compared to 2019. This surge places the region on track to meet its Joint Tourism Strategy (2023-2030), which aims to reach 128.7 million tourists by the end of the decade.
As global travel demand shifts toward destinations offering modern infrastructure, cultural heritage, and premium experiences, the GCC countries have positioned themselves as a leading tourism hub, competing with established markets in Europe, Asia, and North America.
In GCC, Asset Managers wary of geopolitical tensions
Geopolitical tensions and market volatility have emerged as the top concerns for asset managers in the GCC countries, according to a new survey by Moody’s Ratings.
The shift reflects growing unease about regional instability, particularly following the recent conflict between Israel and Hamas, and global economic uncertainty.
However, the still-elevated oil prices, which underpin regional economies, are providing a buffer.
The Moody’s survey of chief investment officers (CIOs) found that most expect inflows and assets under management (AUM) to remain broadly stable despite the heightened anxieties.
Why pressure is growing to finalize UK-GCC free trade deal
The UK’s economic fragility and global turmoil from President Donald Trump’s trade wars have given increased impetus for Britain to reach a free trade agreement with the Gulf Cooperation Council.
Talks for a deal between the six-nation bloc and Britain are continuing apace after restarting in September and are said to be at an advanced stage.
Yet the agreement could not come soon enough for the UK government, which is struggling to breathe life into a stagnant economy.
Prime Minister Keir Starmer has prioritized growth, and a GCC FTA would bring a significant boost to the UK’s finances and the governing Labour Party’s political fortunes.
The benefits would also be plentiful for Gulf countries, many of which have embarked on extensive reforms to diversify their economies away from hydrocarbons and toward modern sectors.
Details of the negotiations are closely guarded, but economists and experts told source they believe a final deal is close and that there is will from both sides to get the agreement in place.
GCC discusses strengthening relations with Uzbekistan
Secretary-General of the Gulf Cooperation Council (GCC) Jasem Mohamed Albudaiwi held a video call with Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov to discuss ways to enhance cooperation between the two sides.
Both officials emphasized the strong ties between the GCC countries and Uzbekistan and reaffirmed their commitment to advancing relations across all sectors, particularly in economics, investment, and finance, to serve mutual interests.
UAE’s non-oil sector continues ‘robust’ growth in Jan
The UAE’s non-oil economy maintained steady growth in January, driven by a rise in new orders, ‘favorable market conditions,’ and easing cost pressures, according to S&P Global.
The Emirates’ Purchasing Managers’ Index stood at 55, slightly down from December’s nine-month high of 55.4.
A PMI reading above 50 indicates growth in the non-oil sector, while a below 50 signals contraction.
The sustained expansion of non-oil business activity across the Middle East, including the UAE, highlights the region’s economic diversification efforts. Saudi Arabia posted a PMI of 60.5 in January, its highest level in a decade. Kuwait recorded a PMI of 53.4, followed by Egypt at 50.7, and Qatar at 50.2.
“The UAE PMI signalled another good month for the non-oil private sector in January, with the headline figure falling only slightly from December’s nine-month high,” said David Owen, senior economist at S&P Global Market Intelligence.
UAE aviation sector sees 10 pc growth in passenger traffic
The UAE’s aviation sector achieved significant growth in 2024, with passenger traffic increasing by 10 percent to reach 147.8 million from 134 million in 2023, according to the General Civil Aviation Authority (GCAA).
In 2024, air cargo also saw notable growth of 17.8 percent to reach 4.36 million tons compared to 3.7 million tons in 2023, reinforcing the UAE’s position as a leading global hub for air transport.
“These figures are not just growth indicators, they are a clear testament to the strength of the UAE’s aviation sector and its key role in supporting the national economy. The sector continues to enhance the country’s position as a global hub for air transport, trade, tourism and investment,” stated Abdulla bin Touq Al Marri, Minister of Economy and Chairman of the GCAA.
Bahrain to raise oil revenue contributions to wealth fund
Bahrain has approved plans to increase its contribution from its oil revenues to its Future Generations Reserve wealth fund. King Hamad of Bahrain approved a new modified savings format, amending the 2006 law that dates back to when the sovereign wealth fund was established. The fund was created to allocate and invest amounts deducted from oil revenues for future purposes. The amount allocated under the new law depends on the price of oil. When the price of oil is between $40 and $60, the fund is allocated $1 from every exported barrel. The contribution increases to $2 for every barrel when its price is between $60 and $80. It goes up to $3 when oil is between $80 and $100, $4 if the price is between $100 and $120, and $5 if it goes over $120 per barrel.