Connectivity, reforms key to expanding GCC-Central Asia trade: IMF
Trade and investment between the Gulf Cooperation Council (GCC) and countries in the Caucasus and Central Asia (CCA) remain below their potential despite growing economic complementarities, according to a new International Monetary Fund (IMF) paper presented during a July 7 virtual launch event. The paper, Strengthening GCC-CCA Economic Cooperation, examines trade and investment links between the two regions and outlines policy measures that could help unlock greater economic integration.
Opening the discussion, IMF Deputy Director for the Middle East and Central Asia Department Subir Lall said strengthening regional partnerships has become increasingly important amid global uncertainty. “Strengthening regional partnerships is not simply about expanding economic opportunities. It is also about building resilience.
UAE foreign investment hits record $48.3bln
Mohamed Hassan Alsuwaidi, UAE Minister of Investment, affirmed that the United Arab Emirates continues to strengthen its position as a leading global investment destination, supported by an advanced economic and legislative framework and a clear strategic vision aimed at enhancing the country’s competitiveness and attracting high-quality investments.
In statements to the Emirates News Agency (WAM) on the occasion of the Ministry of Investment’s launch of the UAE Foreign Direct Investment Report 2026, which highlights the country’s record performance during 2025, he said that inward foreign direct investment (FDI) inflows reached a historic US$48.3 billion for the fourth consecutive year. He added that the UAE advanced to ninth place globally among the world’s leading FDI destinations.
During the interview, Alsuwaidi outlined the key features of the UAE’s investment landscape and its strategic priorities for the coming period.
Regarding the UAE’s targets for attracting foreign direct investment in the coming years and the sectors receiving the greatest interest from global investors, Alsuwaidi said that the National Investment Strategy 2031 sets clear objectives, including increasing annual inward FDI inflows to AED 240 billion (approximately US$65 billion) and raising the country’s FDI stock to AED 2.2 trillion (approximately US$600 billion) by 2031.
Saudi Arabia tops GCC projects market in q2
Saudi Arabia led the Gulf Cooperation Council’s projects market in the second quarter of this year, while other member states grappled with declines amid the economic fallout from the Iran war, a new analysis showed.
In its latest report, Kamco Invest revealed that the Kingdom awarded contracts worth $30 billion in the three months to the end of June, representing an increase of 160.4 percent compared with the previous three months.
On an annual basis, Saudi Arabia’s project awards expanded 53.6 percent, underscoring the Kingdom’s resilience and continued momentum under Vision 2030-related initiatives.
Separate data from S&P Global also pointed to continued strength in the Kingdom’s construction sector. The latest Al Rajhi Capital Saudi Construction Index showed construction activity expanded at its fastest pace this year in June, driven by a sharp rebound in new orders and broad-based gains across residential, non-residential, and infrastructure segments.
S&P Global said the Kingdom’s Construction Index rose to 56.3 in June from 51.2 in May, marking the second consecutive month above the 50-point expansion mark.
Japan: quiet takeover
When Japanese Prime Minister Sanae Takaichi landed in New Delhi on July 1 for the 16th India-Japan Annual Summit, she brought more than 150 Japanese business leaders with her. By the time she left, the two countries had signed 129 private-sector MOUs worth more than 2 trillion yen, alongside fresh commitments on semiconductors, artificial intelligence and economic security. It was the clearest signal yet that India’s Global Capability Centre ecosystem has become central to how Japan plans to solve its most stubborn structural problem: it is running out of people.
Japan’s population has been shrinking for over a decade, and more than 36 per cent of Japanese are now aged 60 or above. That demographic math is colliding with a digital transformation Japan cannot delay. Tokyo’s own Ministry of Economy, Trade and Industry has warned of a “2025 digital cliff” — annual losses of roughly JPY12 trillion if companies fail to modernise their IT systems in time. India, with its scale of engineering talent, has become the obvious release valve.
UAE, Qatar top Arab countries in cost of living plus rent index
The United Arab Emirates and Qatar ranked as the two most expensive Arab countries in terms of the Cost of Living Plus Rent Index, according to data published by Numbeo.
The UAE ranked first among Arab countries and 28th globally with an index score of 48.2, followed by Qatar in second place and 34th worldwide with a score of 45.8.
Kuwait ranked third among Arab countries and 68th globally, with an index of 33.3; Yemen ranked 71st worldwide with 32.0; and Palestine ranked fifth regionally and 78th globally with 30.9.
Unusual delays in bank transfers between Saudi Arabia and UAE: bloomberg
Bank transfers from Saudi Arabia to the UAE have faced unusual delays in recent weeks, raising concerns among companies and individuals operating between the two largest Arab economies.
According to people familiar with the matter, who requested anonymity due to the sensitivity of the information, the delays have affected various sectors, though the causes and full extent remain unclear, Asharq Bloomberg has reported.
Some people reported that funds left accounts in Saudi Arabia without reaching beneficiaries in the UAE, or were returned to senders, alongside disruptions in electronic payments between the two markets. This has prompted some to reroute transfers through other countries seemingly unaffected by the issue.