Bahrain’s Premier pledges $17B in investments at Trump meeting
If there were any doubts about Bahrain’s commitment to pouring $17 billion into the U.S. economy, Crown Prince Salman bin Hamad Al Khalifa insisted at the White House that “these aren’t fake deals.”
Meeting with President Donald Trump in the Oval Office on Wednesday before joining him for a private lunch, Prince Salman, who serves as Bahrain’s Prime Minister, hailed the relationship between the two countries, which includes Bahrain hosting the U.S. Naval Forces Central Command and the U.S. Fifth Fleet.
In response, Trump said he appreciated the investment and admired Bahrain’s ability to pay for it. “You don’t have to borrow the money,” he said.
Nevertheless, the President recalled his swing through the Middle East in May when he was showered with investment pledges from Saudi Arabia, Qatar and the UAE that dwarfed what Bahrain plans to spend.
All told, Trump said he came out of the trip with $5.1 trillion in deals, more than twice what was previously announced.
While Prince Salman didn’t spell out Bahrain’s shopping list in defense deals or corporate transactions, Bahraini financial institutions and corporate firms announced plans to invest $10.7 billion in the U.S. That included a $2 billion agreement between Bahrain’s sovereign wealth fund, Mumtalakat, and a consortium of American companies in aluminum-related industries.
In addition, Bahrain’s flag carrier Gulf Air is reportedly weighing an order for up to 20 additional Boeing aircraft to modernize its fleet, according to Bloomberg.
Along with the Bahrain visit, Trump hosted a private dinner on Wednesday with Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani, which focused on the Gulf state’s effort to mediate hostage negotiations between Israel and Hamas.
Oman to impose personal income tax on its high earners by 2028
Oman’s Sultan Haitham bin Tarik has approved a personal income tax law to be implemented on individuals earning more than $110,000 annually.
The measure, which will be imposed starting in 2028, positions Oman as the first Gulf state to levy personal income tax, part of broader efforts to diversify revenue away from oil.
An earlier draft proposing separate thresholds for Omanis and expatriates was rejected by the Sultan.
With 2.7 million workers – 1.8 million expatriates – the reform is projected to raise over $285 million annually.
Google injects $6 billion into UAE’s economy with AI push
The UAE’s expanding ties with Silicon Valley are paying dividends for the economy amid new joint investments in artificial intelligence.
Among the major contributors to the Gulf state’s economic growth last year was Google, whose products contributed $6 billion to GDP, according to a report released today by Public First, a London-based consulting firm.
The search company’s tools, particularly in advertising, mapping and through its YouTube and Gemini AI units, fueled growth in business and individual productivity, said the economic impact report, which was commissioned by Google.
“The report reflects our investment in accelerating the country’s ambitious journey towards a diversified, AI-powered economy,” Anthony Nakache, Google’s Managing Director for the Middle East and North Africa, said in the report’s introduction.
In the UAE, 63% of adults surveyed said they had used Gemini, Google’s AI assistant, and 90% of those users said it improved their productivity. More than two-thirds said Gemini was easier to use in Arabic than other AI chatbots.
The UAE plans to spend hundreds of billions of dollars to establish itself as a world leader in AI infrastructure, establishing partnerships through its G42 tech firm and MGX investment fund with firms including Microsoft, Nvidia, OpenAi and Oracle.
Oman launches smart cities to boost net-zero, diversify economy
Oman has launched two smart city projects as part of its efforts to cut carbon emissions and diversify its economy.
The first city, for 10,000 residents, will be built in the mountain region of Jebel Akhdar, while the second, Thuraya City in Muscat, will house 8,000 people, Arabian Gulf Business Insights reports.
Both cities will rely on renewable energy, including solar power, and will be used to promote Oman’s carbon-free environment plans, the Ministry of Housing and Urban Planning said.
The announcement comes a week after the Sultanate launched the Oman Centre for Net Zero. Like other Gulf countries, Oman has been ramping up investment in green infrastructure to diversify its economy beyond oil and gas.
The push for smart cities also reflects the country’s commitment to attracting foreign investment and creating livable, future-ready urban environments.
Egypt starts to rebound after IMF bailout, ADQ resort investment
Egypt’s economy is growing at a pace it hasn’t seen since 2022 following last year’s IMF bailout and a massive investment from the UAE.
GDP grew 4.3% year-on-year in the last three months of 2024, which the government attributed largely to the IMF’s $8 billion loan package and Abu Dhabi-owned ADQ’s $35 billion Ras El-Hekma resort project.
Egypt’s Ministry of Planning, Economic Development and International Cooperation pointed to tourism, trade-related transportation and non-oil manufacturing as the key drivers of economic expansion.
Private investment increased 35.4% year-on-year in the fourth quarter, while public investment contracted 25.7%. Tourism grew by 18% in the fourth quarter, with total visitors rising to 4.41 million
Still, the Egyptian economy suffered some major setbacks, including a 70% decline in revenue from the Suez Canal because of “ongoing geopolitical tensions” and a 7.5% drop in income from oil production.
Over 550 firms set up regional headquarters in Saudi Arabia
Saudi Arabia’s drive to establish itself as a Middle East hub for international business while shifting its economy from dependence on oil is making progress, according to Investment Minister Khalid Al-Falih.
Speaking at the World Investment Conference in Riyadh on Monday, Al-Falih said more than 550 firms have established regional headquarters in the kingdom, making reference to announcements last week by Citibank and Morgan Stanley on their expanded Saudi offices.
Saudi Arabia introduced a policy this year requiring foreign firms to set up regional hubs in the kingdom as a prerequisite to winning government contracts. Compliance comes with perks, including a 30-year exemption from corporate income tax and access to discounts and support services.
Al-Falih, who is trying to coax more countries to put their money in Saudi Arabia, opened the conference by reporting that foreign direct investment has tripled since 2016, when the kingdom introduced its Vision 2030 economic overhaul plan.
“We are confronted with crosswinds to global investments – driven forward on one hand by the tech revolution, booming stock markets, and the onset of promising monetary policies, while constrained on the other hand by geopolitical instabilities, trade barriers, and talent and skill shortages,” Al-Falih said.
Saudi Arabia’s annual ‘Davos’ conference gets started in Riyadh
Saudi Arabia is in full swing this week in its effort to wow Wall Street and the rest of the financial world as Crown Prince Mohammed bin Salman hits the midpoint of his Vision 2030 plan to transform the economy.
Some 7,000 movers and shakers are pouring into Riyadh for the Future Investment Initiative conference that takes place annually at the opulent Ritz Carlton hotel and in the vast halls of the adjacent King Abdul Aziz International Conference Center.
Getting a jump on the confab in Riyadh, the developers of Saudi Arabia’s trillion-dollar-plus Neom project invited a select group of financiers, celebrities and influencers to a kickoff event over the weekend at Sindalah Island, five kilometers off the kingdom’s west coast, Bloomberg reports.
The Red Sea resort island, where an ecosystem is rising of super-luxury hotels, swank night clubs and an 86-berth yacht marina, hosted a beach party headlined by Grammy Award winner Alicia Keys. She sang to an audience that included actor Will Smith, tennis champ Rafael Nidal and former NFL quarterback Tom Brady.
Back in the capital, FII opens on Tuesday with a bevy of investment bankers, hedge fund founders and corporate titans who have become regulars at the conference that was originally billed as “Davos in the Desert,” to highlight its aspirations for global influence.
Among the speakers slated for the main stage are Larry Fink, Chairman and CEO of BlackRock; Ben Horowitz, co-founder of Andreesen Horowitz, Jane Fraser, CEO of Citi; Ken Griffin, Founder and CEO of Citadel; Dame Julia Hoggett, CEO of the London Stock Exchange; Ruth Porat, President and Chief Investment Officer of Alphabet and Google; and David Rubenstein, Co-Founder and Co-Chairman of The Carlyle Group.
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The three-day event will be introduced by Yasir Al-Rumayyan, who is Governor of the Saudi Public Investment Fund and Chairman of Aramco. Richard Attias, CEO of the FII Institute, said at a press conference that he expects some $28 billion in business deals to be announced during the course of the conference.
Saudi Arabia cuts hotel fees to stimulate its tourism industry
Saudi Arabia is tearing down barriers to entry when it comes to tourism.
Having poured billions into developing its Red Sea spas, historical desert sites and sporting events, the kingdom has decided to scrap municipal licensing fees for hotels, hotel apartments, and residential resorts.
The move reflects the country’s efforts to transform the economy away from its longtime dependence on oil and develop industries such as tourism, finance and manufacturing.
Saudi Arabia has been determined to strike a balance between making foreigners feel welcome while guarding the Islamic country’s conservative ideals.
UAE’s non-oil trade hits record $381 billion in first half of 2024
The UAE’s pursuit of closer trade ties with fast-growing economies in the Middle East, Asia and Africa saw its non-oil foreign trade hit a record $381 billion in the first half of 2024, up 25% compared to the same period last year. Non-oil exports made up 18.4% of total trade, compared to 16.4% for H1, 2023.
The double-digit expansion in foreign trade defied a global trend in slowing trade growth, spurred on by the signing of so-called comprehensive economic partnership agreements with several countries, Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a statement on Sunday.
The new trade figures show “the UAE economy’s resilience, which is the result of our steadfast commitment to building strong, productive public-private partnerships as well as fostering collaborative growth with emerging global economies,” Al Zeyoudi said.
The Emirates, which is planning to sign similar trade deals with 26 countries, has so-far inked agreements with India, Turkey, Israel, Indonesia, Cambodia and Georgia, and is negotiating with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.
The deals are considered critical to achieving the UAE’s ambitious target of close to $1.1 trillion in non-oil foreign trade by 2031.
Saudi executives seek partners in South Korea with trip to Seoul
Saudi Arabia’s campaign to expand its economy beyond dependence on oil is widening its global focus and turning up new corporate trading partners in South Korea, Asia’s fourth largest economy.
After a business conference in Seoul this week, the kingdom reported signing 10 agreements ranging from construction and energy to healthcare and food exports.
Saudi Minister of Commerce Majid Al-Qasabi led a delegation of 80 business executives and government officials at the Saudi-Korean Business Forum, where South Korean companies pitched cooperation in car manufacturing, data centers and urban infrastructure, Arab News reports.
Al-Qasabi also met with South Korean Prime Minister Han Duck-soo after arriving in Seoul on Monday.
Commercial activity between the two countries, which reached $35 billion between 2019 and 2023, is likely to jump substantially with the signing of a free trade agreement last December between South Korea and the GCC, Cheong In-kyo, the head of trade negotiations at the Ministry of Trade, Industry and Energy, told the conference.
Abu Dhabi-based AI developer Bayanat, meanwhile, signed an agreement this month to form a joint venture with South Korea’s Autonomous a2z that will use driverless taxis to transport passengers arriving at Zayed International Airport to the Emirati capital’s hotels and attractions.
