COP28: Rethink, reboot and refocus
Climate experts agree that a more pragmatic approach is needed for the energy transition. At COP21 in 2015, the world committed to limiting global warming to 1.5°C above pre-industrial levels by 2050. To stay on target, science indicates that emissions must be halved by 2030. With just seven years remaining to achieve this goal, COP28 UAE presents a prime opportunity to rethink, reboot, and refocus the climate agenda. TRENDS explores how this global event can pave the way for a green and prosperous world.
Infra, innovation add to Dubai boom
Dubai’s economic resilience shines brightly in 2023. The emirate has showcased a remarkable 3.2 percent growth in the first half of the year. Key sectors, including transportation, trade, and real estate, have been pivotal in this economic surge. The Dubai Economic Agenda D33’s goals are not just on track but are being surpassed. TRENDS tries to find out how Dubai continues to solidify its position as a global economic powerhouse, blending innovation with sustainable growth strategies.
Saudi real estate remains resilient
Saudi Arabia’s real estate is flourishing, attracting global investors. Bolstered by the Public Investment Fund (PIF), the Kingdom saw a 0.8 percent rise in its Real Estate Price Index in Q2 2023.
Residential and commercial prices grew by 1.1 percent and 0.2 percent, respectively. 2022’s rental transactions, valued at $20.2 billion, nearly doubled from the prior year.
With a goal of 70 percent homeownership by 2030, PIF’s $1.3 billion investment in local construction is significant. TRENDS explores the reasons behind sector’s resilience amidst global economic challenges.
Saudi Arabia: A rising tourism star
Since opening its doors to international tourists in 2019, Saudi Arabia’s tourism market has seen rapid growth, rising to 13th place globally for international tourist arrivals in 2022, up from 25th in 2019.
With over 94 million visits in 2022, the Kingdom is on track to reach its Vision 2030 target of 100 million annual visits.
TRENDS team delves into policies and measures that are helping the sector prosper during tough times.
Oil wealth adds to luxury boom
Driven by robust oil production and exports, the GCC economies have achieved significant growth, leading to increased affluence. This has fueled a continuous rise in luxury product spending.
Additionally, the region’s population has experienced substantial growth, particularly among the younger demographic.
TRENDS looks at how the rising number of high net worth individuals (HNWIs) in various sectors is driving demand for luxury goods and services in the region.
Recovery roadmap for GCC banks
Although the region’s banking sector anticipates a positive year ahead, it must navigate potential obstacles such as economic slowdowns, heightened exposure to risky markets like Egypt and Turkey, and possible liquidity crunches.
The scenario of diminishing local and global liquidity in certain areas is also a concern.
TRENDS team examines all the factors and their impact on the sector, aiming to predict its future trajectory.
Inflation
The region, according to the GCC Statistical Center, is expected to face inflationary pressures from jumps in costs of imported raw materials and consumables.
All Gulf countries are forecast to have inflation rates in the range of 1-3 percent in 2022, with Qatar hitting the highest rate.
TRENDS finds out the impact of inflation on the regional economies.
Ramadan
The pandemic had forced majority of people to observe fast while staying indoor, which had directly and indirectly affected trade and commerce. The markets are now gradually moving back towards normalcy as the COVID-19 restrictions have eased.
The Holy Month had been a fertile time for shoppers seeking savings. However, things are not the same due to COVID-19, which has been affecting the regional economies since 2020.
TRENDS tries to review the impact of Ramadan on economies and growth of the region amidst the pandemic. Attempts have also been made to delve into how the region is coping with global supply constraints, surging demand, rising prices and trimmed margins for wholesalers and retailers.
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Dubai goes the Monaco way
Dubai boasts a thriving community of startup incubators and accelerators, as well as regulatory sandbox schemes for the development and testing of new tech business models. The city tops the list for foreign direct investment (FDI) and technology transfer in startups, AI and robotics sectors.
The emirate is constantly working to become the world’s most significant destination for foreign investment and high net worth individuals (HNWIs).
TRENDS comes up with a few special reports that suggest that Dubai is another Monaco in the making in more ways than one.
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