In 2025 GCC public spending projected to hit $542bn
Total public spending by the six Gulf Cooperation Council (GCC) countries is expected to reach $542.1bn in the 2025 financial year, according to data released by the GCC Statistical Center (GCC-Stat).
According to a report published by the state news agency, WAM, the six member states — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — have largely projected higher public expenditures compared to 2024, directing increased funds toward infrastructure completion and targeted economic sector growth in line with long-term development strategies.
GCC-Stat data shows that government revenues across the bloc are forecast to remain relatively stable in 2025, supported by expectations that global oil prices will remain at moderate to high levels throughout the year.
Total public revenues for the GCC countries are estimated at $487.8bn, resulting in a combined budget deficit of $54.3bn for the year, the WAM report stated.
US tariffs, lower oil prices may slow down FDI flows into GCC
Foreign direct investment (FDI) inflows into the GCC region are expected to slow down in 2025 after a decade of rapid growth, S&P Global Market Intelligence said in its latest outlook report.
The slowdown is attributed to investor uncertainties, reflecting changing US trade policies, lower oil prices, and a more gradual development of GCC diversification projects.
In the near term, the report forecasts a net negative impact on global FDI, primarily due to the indirect repercussions of US tariffs, a weaker oil price outlook and reduced global investor confidence.
Lower oil prices, reflecting expectations of weaker oil demand and increasing OPEC supply, are likely to constrain the foreign exchange earnings generation capacity of large MENA hydrocarbon exporters. This, in turn, will limit their capacity to act as major investors in other countries within the region.
While the GCC states have committed to investing large amounts of FDI in the US economy, such outflows are likely to reduce capital available for investment in non-GCC MENA states, which remain “attractive venues” for renewable energy and tourism developments, the report said.
Ishaq reiterates commitment to strengthening Pak-UAE economic ties
Deputy Prime Minister and Foreign Minister Ishaq Dar on Friday reiterated Pakistan’s firm commitment to strengthening Pak-UAE economic and trade relations.
DPM Ishaq Dar was speaking at a high-level meeting held to review preparations for the upcoming 12th session of the Pakistan-UAE Joint Ministerial Commission (JMC) scheduled to be held in Abu Dhabi, a statement from the Foreign Office said.
According to the FO statement, the 12th session of Pak-UAE JMC is being held after a hiatus of 13 years as it was originally scheduled in October 2024. The 11th session was held in Islamabad from 6-7 November 2013.
Dubai’s AI Operating System
Dubai has fundamentally redefined governance by declaring artificial intelligence as its “operating system” – a transformative approach that weaves AI into the very fabric of public services, decision-making, and economic operations. This is not mere rhetoric but a comprehensive institutional shift comparable to building telecom networks or transport corridors, aimed at transforming governance, boosting economic innovation, and establishing new global benchmarks.
In June 2024, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, appointed 22 Chief AI Officers across government entities ranging from Dubai Police and Customs to the Roads & Transport Authority and the Department of Economy & Tourism. These appointments form part of the Dubai Universal Blueprint for AI (DUB.AI), a comprehensive framework designed to embed AI systems across every government vertical in a coordinated, strategic manner.
Dubai takes control of linchpin of emirate’s consumer economy
Dubai has taken control of a linchpin of the emirate’s consumer economy, stepping in to overhaul its governance and resolve a troubled succession three years after its founder died. A government-established “special judicial committee” — formed at the request of the 10 heirs of the founder of the eponymous Majid Al Futtaim group — has appointed a new board to oversee its parent company, according to four people with knowledge of the details.
MAF is one of the largest privately owned companies in the Gulf, spanning malls, hotels, real estate and entertainment. Regionally it operates brands such as Carrefour, Lego and Hollister. Its revenues were more than $9bn last year.
But concerns had grown that disagreements among the shareholders of the family-owned group were undermining the business, said people with direct knowledge of the situation.
The special judicial committee — led by Essa Kazim, who runs Dubai International Financial Centre — has responded by reconstituting MAF Capital’s board with five government and four family representatives, led by Emirati businessman and financial regulator Fadel al-Ali.
MAF Capital has also been changed from a limited liability company to a public joint stock company and the threshold for agreement on decision-making has been reduced.
The changes “reflect a shareholder-led effort to evolve governance in line with the long-term interests of the group”, MAF said.
“Majid Al Futtaim remains a privately owned and independently operated Emirati company with a clear strategy, strong performance and stable governance,” the company added. “These changes do not affect the operations or governance of [operating company] Majid Al Futtaim Holding.”
The independent board of Majid Al Futtaim Holding is chaired by former KPMG International chair Sir Michael Rake.