IMF’s Kristalina Georgieva’s participation in WGS

Falling interest rates and recovering real wages will help drive a slight pickup in global economic growth this year and next, while recent falls in oil prices could aid the final push to tame inflation, the Organization for Economic Cooperation and Development said Wednesday.

However, the Paris-based research body warned that “comparatively benign” projections may not come to pass, with uncertainties remaining about how large an impact high interest rates will have on demand in the months ahead, while an escalation of the conflicts in the Middle East could push oil prices sharply higher.

In its quarterly report on the economic outlook, the OECD said it now expects global output to increase by 3.2% in 2024 and again in 2025, having grown by 3.1% last year. That was a slight upgrade from the 3.1% growth it forecast in May, and a sizable revision from the 2.7% expansion it expected to see when it published forecasts at the end of 2023.

The U.S. is largely responsible for that better performance, but India and Brazil are also growing more rapidly than expected, as is the U.K. By contrast, Germany and Japan have disappointed, with the former now forecast to hover on the brink of stagnation this year, and the latter to experience a small contraction.

However, despite the improved outlook for growth, and inflation rates that the OECD expects to fall to central-bank targets by the end of next year, consumer confidence has yet to pick up significantly, which would give a further boost to growth.

The OECD said that persistent dissatisfaction with economic performance, which is not limited to the U.S., is likely linked to the fact that food prices remain well above their pre-pandemic levels.

“There is a disconnect between how the economy is perceived and how the economy is doing,” said Alvaro Pereira , the OECD’s chief economist. “For people who go to the supermarket, food prices relative to wages are still higher.”

In the U.S., the gap between food-price and wage inflation between the end of 2019 and the second quarter of this year was roughly four percentage points. But that gap was much wider in large European economies, and above 15 percentage points in Germany. In South Africa, it was above 20 points.

The recent fall in oil prices may help offset some of that dissatisfaction, and boost a global fight to tame inflation that appears to be in its final stages. The OECD estimated that the 10% decline since July would knock half a percentage point off the global rate of inflation, if it were to be sustained. But it is far from certain that it will be.

“If the conflict in the Middle East escalates, this will have an impact on energy prices,” Pereira said.

Should escalation be avoided, the OECD said further falls in oil prices could allow for a faster reduction in central-bank interest rates than it currently expects, and boost growth in countries that don’t produce oil.

With inflation rates set to fall further, the OECD said central banks should lower their key interest rates, but in a manner that is “carefully judged” to ensure price rises continue to slow. It expects the Federal Reserve’s key rate to fall by a further 1.5 percentage points by the end of 2025, while the European Central Bank’s key rate is forecast to fall by 1.25 percentage points.

The Paris-based body said the interest-rate rises that central banks announced in 2022 and 2023 to counter a surge in inflation continue to weigh on growth, although with diminishing force.

But it noted that many households and businesses continue to see the interest rates they pay rise as their debts mature and they enter into new contracts. The OECD estimated that almost a third of rich-country corporate debt is due to mature in 2026, with new debt issued to replace it likely paying a higher rate of interest.

The OECD left its forecast for U.S. growth in 2024 unchanged at 2.6%, and also retained its 4.9% projection for China. Pereira said the package of stimulus measures announced by the Chinese government Tuesday could lead to a “slight” upward revision when the OECD next releases growth forecasts in early December.

A big raise provides significant boosts in happiness even at household incomes of $500,000, according to a new research report.

A wealth of research has long shown that more money makes a big difference to people with low pay, moving them from insecurity to stability. Above that level, the effect is often assumed to be much smaller.

But according to a paper by Matt Killingsworth , a senior fellow at the University of Pennsylvania’s Wharton School, the bonuses and leaps in income high earners reap are so large that they keep adding to well-being in the same way that smaller pay bumps do at lower tiers of earnings.

“I think of this as a ladder across society. The rungs are separated by more and more dollars, but exactly the same amount of happiness,” said Killingsworth, who published his report on his Happiness Science website.

An academic paper in 2010 popularised $75,000 as the salary threshold beyond which earning more money didn’t make people any happier. More recent research indicates that there is no such plateau.

Killingsworth and other researchers stress that many things influence human happiness, including your relationships, your job and the country you live in.

“No single factor, including money, dominates the equation,” Killingsworth said.

Previous studies on money and happiness have consistently demonstrated two things: that richer people are happier, and that it takes progressively more money to keep generating a well-being boost of a given size.

Killingsworth says that many people draw the wrong conclusion from that latter finding. They assume that money makes the biggest difference on Americans’ happiness at lower levels of income.

His paper suggests this assumption is wrong. That is because earnings surge exponentially across the income distribution, offsetting money’s diminishing returns on happiness even at the high end.

The lowest-earning 20% of U.S. households on average brought in about $23,000 before taxes in 2021, and the middle 20% earned about $87,000, according to the latest data from the Congressional Budget Office. The top 20% averaged roughly $418,000, with the very highest earners making significantly more than that.

“It could be entirely reasonable for an individual to continue aspiring to climb one more rung in the income ladder” to pursue happiness, Killingsworth writes in his paper.

Even Americans earning a lot of money wish they could do just that. Last year, survey respondents with incomes of $200,000 or more said that the median income they would need to be happy and less stressed was $350,000, according to data from the financial-services company Empower.

More money doesn’t guarantee more happiness. The side effects vary. Some who receive big raises later report big letdowns. Others who voluntarily take a pay cut say they are glad they did.

LIKE MARVEL VILLAINS, most fashion writers have origin stories. Mine began with a navy nylon Prada purse, salvaged from a Boston thrift store when I was a teen in the 1990s. Scuffed with black streaks and sagging, it was terribly beat-up. But I saw it as a golden ticket to a future, chicer self. No longer a screechy suburban theatre kid, I would revamp myself as sophisticated, arch, even aloof. The bag, I reasoned, would lead the way.

That fall, I slung it against my shoulder like a shotgun and marched into school, where a girl far more interesting than I was called out, “Hey, cool bag.” After feigning apathy —“I don’t know, you could use a Sharpie on a lunch bag and it would look the same”—we became friends. She introduced me to a former classmate who worked at a magazine. That woman helped me get an internship, which led to a job.

Twenty years later, I still wonder how big of a role that Prada purse played in my future—and whether designer bags can function as a silent partner in our success. Branded luxury bags took off in 1957, when Grace Kelly posed with an Hermès bag in Life magazine. (Hermès renamed that bag “the Kelly” in 1973.) The term “status bag” was popularised in 1990 by Gaile Robinson in the Los Angeles Times, describing any purse that projects social or economic power. Not surprisingly, these accessories are costly. Kelly bags cost over $10,000; ditto Chanel’s 11.22 handbag. Some bags by Louis Vuitton and Dior command similar price points. The cost isn’t repelling customers—both brands reported revenue surges in 2023. But isn’t there something dusty about the idea that a branded bag carries meaning along with your phone and wallet? How much status can a status bag deliver in 2024?

Quite a lot, said Daniel Langer, a business professor at Pepperdine University and the CEO of Équité, a Swiss luxury consulting firm. Beginning in 2007, Langer showed a series of photo portraits to hundreds of people across Europe, Asia and the U.S., then asked them 60 questions. Those pictured carrying a luxury handbag were seen as “more attractive, more intelligent, more interesting,” he said. The conclusion was “so ridiculous” to Langer that he repeated the studies several times over the next decade and a half. The results were always the same: “Purchasing a ‘status bag’ will prepare you to be more successful in your social actions. That is the data.”

Intrigued, I gathered various Very Important Purses—I borrowed some from friends, and others from brands—to see if they could elevate my station with the same unspoken oomph as a “Pride and Prejudice” suitor.

First, I took Alaïa’s Le Teckel bag—a narrow purse resembling an elegant flute case and carried by actress Margot Robbie—to New York’s Carlyle Hotel on a Saturday night. The line for the famous Bemelmans Bar stretched to the fire exit. “Can I get a table right away?” I asked the host, holding out my bag like a passport before an international flight. “It’s very busy,” he said in hushed tones. “But come sit. A table should open soon.” I sank into one of the Carlyle’s lush red sofas and sipped a martini while waiting—a much nicer way to kill 30 minutes than slumped against a lobby wall.

Wondering if this was a one-time thing, I called up Desta, the mononymous “culture director” (read: gatekeeper) who has worked for Manhattan celebrity hide-outs like Chapel Bar and Boom, the Standard Hotel bar that hosts the Met Gala’s official after party. “Sure, we pay attention to bags,” he said. “Not too long ago at Veronika,” the Park Avenue restaurant where Desta also steered the social ship, “we had one table left. A woman had a Saint Laurent bag from the Hedi Era,” he said, referencing Hedi Slimane , the brand’s revered designer from 2012 to 2016. “I said, ‘Give her the table. She appreciates style. She’ll appreciate this place.’”

Some say a status bag can open professional doors, too. Cleo Capital founder Sarah Kunst, who lives between San Francisco and London, notes that in private-equity circles, these accessories can act as a quick head-nod in introductory situations. Kunst says that especially as a Black woman, she found a designer bag to be “almost like armour” at the beginning of her career. “You put it on, and if you’re walking into a work event or a happy hour where you need to network, it can help you fit in immediately.” She cites Chanel flap bags made from the brand’s signature quilted leather and stamped with a double-C logo as an industry favourite. “People love to talk about them. They’ll say, ‘Ohhh, I love your bag,’ in a low voice.” They talk to you, said Kunst, “like you’re a tiger.”

For high-stakes jobs that rely on commissions—sports agents or sales reps, for instance—a fancy handbag can help establish credibility. “It says, ‘I’m succeeding at my job,’” said Mary Bonnet, vice president of the Oppenheim Group, the California real-estate firm at the centre of Netflix reality show “Selling Sunset.” As a new real-estate agent in her 20s, Bonnet brought a fake designer bag to a meeting. To her horror, a potential buyer had the real thing. “I work in an industry where trust is important, and there I was being inauthentic. That was a real lesson.” Now Bonnet rotates several (real) Saint Laurent and Chanel bags, but notes that a super-expensive purse could alienate some clients. “I don’t think I’d walk into [some client homes] with a giant Hermès bag.”

Hermès bags are supposedly the apex predator of purses. But I didn’t feel invincible when I strapped a Kelly bag around my chest like a pebbled-leather ammo belt. The dun-brown purse cost $11,800, a sum that prompted my boyfriend to ask if I needed a bodyguard. Shaking with “is this insured?” anxiety, I walked into a showing for an $8.5 million apartment steps from Central Park. I made it through the door but was soon stopped by a gruff real-estate agent asking if I had an appointment. No, but I had an Hermès bag? Alas, it wasn’t enough. The gleaming black door closed in my face.

“What went wrong?” I asked Dafna Goor, a London Business School professor who studies the psychology behind luxury purchases. “You felt nervous,” she replied. “That always makes others uncomfortable, especially in a high stakes situation,” like an open house with jittery agents. Goor said recognisable bags from Louis Vuitton and Christian Dior are also often faked, which can lead to suspicion if not paired with “other signals of wealth.”

“You can’t just treat a bag as a backstage pass,” said Jess Graves, who runs the shopping Substack the Love List. Graves says bags are more of a secret code shared between potential connections. “I’ve been in line for coffee and a woman will see my Margaux [from the Row] and go, ‘Oh, I know that bag.’ Then we’ll chat.” Graves moved from Atlanta to Manhattan in 2023, and says she’s made some new, local friends thanks to these “bag chats.”

I had my own bag chat that night, when I brought Khaite’s Olivia—a slim crescent of shiny maroon leather—to a house party thrown by a rock star I’d never met. In fact I knew hardly any guests, but as I stood in the kitchen, a woman in vintage Chanel pointed to my bag and asked, “How did you get that colour? It’s sold out!” Before I could tell her my name, she told me the make and model of my purse. Then she laughed about her ex-boss, a tech billionaire, and encouraged me to buy some cryptocurrency. The token I picked surged nearly 30% in about a week. Now I was onto something—a status bag that might bring not just status, but an actual market return.

Thanks to their prominence on social media, certain bags have gained favour among Gen Zers. “TikTok and Instagram make some luxury items even more visible and more desirable to young people,” said Goor. I experienced this firsthand on a stormy Saturday morning, when a girl in a college hoodie pointed at my Miu Miu Wander bag as I puddle-hopped through downtown New York. The piglet-pink purse is a TikTok favourite seen on young stars like Sydney Sweeney and Hailey Bieber. “Your bag is everything!” yelled the girl from the crosswalk. “Thanks, can I have your umbrella?” I shouted back. She laughed and left. My Wander had made a splash—but it couldn’t keep me dry. I ran to the subway, soaked. The bag looked even better wet.

Changing the Status Bag Quo

Everyone loves an ingénue—fashion insiders included. Perhaps that’s why at Paris Fashion Week in September, newer handbags from Bottega Veneta and Loewe jostled for space and street-style flashbulbs.

“These bags, especially ones by independent labels like Khaite, are quieter signals of cultural access,” explained Goor. “Everyone knows what an Hermès Kelly bag is. So now there need to be new signals” beyond traditional status bags to convey power.

Sasha Bikoff Cooper, a Manhattan interior designer, says there’s a less cynical explanation for why these bags have captured celebrity fans—and more important, paying customers. “They’re fresh and also beautiful,” she said. “Hermès is always classic. It’s like a first love. But you want newness, too.”

The Wall Street Journal is not compensated by retailers listed in its articles as outlets for products. Listed retailers frequently are not the sole retail outlets.

The Ministry of Tourism announced that Saudi Arabia saw an 8.2 percent increase in inbound visitor spending, reaching approximately SR92.6 billion in the first half of 2024 compared to the same period in 2023. Additionally, the Kingdom recorded a travel account surplus of around SR41.6 billion.

The rise in spending by international visitors highlights the significant advancements within Saudi Arabia’s tourism sector.

The ministry also cited data from UN Tourism, which showed that Saudi Arabia led G20 nations in both international tourist arrivals and the growth rate of tourism receipts during the first seven months of 2024, compared to the same period in 2019.

These achievements reflect the success of the Kingdom’s tourism ecosystem in positioning the sector as a global leader, thanks to the adoption of best practices, improvements in tourism services and products, and strong collaboration with government bodies.

The statement emphasized that these efforts continue to strengthen the tourism sector’s contribution to the Kingdom’s economic growth and global standing.

American Express Middle East has entered into a partnership with the online payment gateway, Telr, to broaden its acceptance across Telr’s merchant network. This collaboration positions American Express as one of Telr’s aggregation payment service providers in the MENA region.

As a result of this agreement, American Express Card Members will be able to use their cards at thousands of Telr’s online merchants, significantly increasing the number of locations where their cards are accepted. Merchants working with Telr for American Express acceptance will now have the opportunity to attract customers globally, including from the Middle East and beyond.

These merchants will also benefit from Telr’s versatile payment gateway, offering transactions in over 120 currencies and supporting 30 languages through various payment methods, including pay-by-link services.

Commenting on the agreement, Graziela Martins, Vice President Merchant Business of American Express Middle East, said: “We are proud to sign the partnership with Telr to expand our merchant acceptance network and enable our Card Members to use their Cards more and more for everyday spend. At American Express, we’re proud to see more businesses accepting American Express in the Middle East region and globally.”

Khalil Alami, Founder & CEO of Telr, said: “Our agreement with Amex enables our merchants to increase their global market reach, connecting with millions of consumers and businesses worldwide. Becoming American Express Middle East’s first aggregation payment service provider in the MENA region is a great honor and will enable us to offer swift onboarding with just a click of a button.”

Alami added, “At Telr, we’re dedicated to providing merchants with top-notch technology and the best payment methods to boost their competitiveness and simplify online shopping for customers.”

Globally, American Express has tripled the number of accepting merchants since 2017, with more than 89 million locations worldwide.

Amaar Holding Company has announced the start of a strategic alliance with Maheshwari, an Indian company recognized as a leader in the mining sector. The purpose of this partnership is to form a new company specializing in mining and providing advanced geological and mining services in Saudi Arabia. This initiative aligns with the goals of Saudi Vision 2030.

In a statement, Abdulhadi bin Fahd Al-Qahtani, Chairman of Amaar Holding Company, confirmed that this alliance will contribute to developing the mining sector and achieving the goals of Vision 2030. He said: “Through our local expertise and the capabilities of our Indian partner, our company, which specializes in mining services, will provide high-quality services that meet market needs and support the sustainable development process.”

Al-Qahtani added: “This alliance comes within the framework of our continuous efforts to expand into new markets, seize promising investment opportunities, benefit from the natural resources in the Kingdom, and contribute to building a promising future.”

He continued: “Through our mining services company, we aspire to be at the forefront of geological and mining services companies in the Kingdom by 2030 through adhering to the highest quality, safety, and sustainability standards.”

Notably, the Kingdom’s Vision 2030 aims to increase the mining sector’s contribution to the GDP from $17 billion in 2019 to $75 billion by 2030 through increasing exploration and infrastructure investments and attracting the private sector.

The Oman Investment Authority (OIA), Oman’s sovereign wealth fund, has announced the Initial Public Offering (IPO) of 25% of the shares in OQ Exploration & Production, a subsidiary of the OQ Group, which is fully owned by OIA. This IPO is set to become the largest ever on the Muscat Stock Exchange.

Of the shares offered, 60% will be allocated to institutional investors, both in Oman and internationally, while 40% will be available to individual investors.

This Shariah-compliant IPO is part of OIA’s broader divestment strategy, first announced in mid-2022. Since then, OIA has raised over USD 2.5 billion by divesting from 12 investments between 2022 and 2023. These divestments included nine private placements across various sectors and three IPOs on the Muscat Stock Exchange, namely The Pearl REIF, Abraj Energy Services, and OQ Gas Networks, all of which saw significant oversubscription, demonstrating strong investor confidence.

OIA’s approach focuses on divesting from a select number of its subsidiaries and converting them into public joint-stock companies or selling equity in these subsidiaries directly to strategic investors. This strategy aims to stimulate Oman’s economy and invigorate the Muscat Stock Exchange, thereby elevating Oman to emerging market status. By listing government-owned assets publicly, OIA seeks to enhance governance, transparency, and adoption of global best practices. This policy is integral to Oman’s economic diversification efforts and aims to empower the private sector to play a leading role in driving the economy. Additionally, it creates profitable investment opportunities for citizens and residents as well as attracting high-quality foreign investments.

Constantly evolving in response to global economic shifts with the aim to establish a robust institutional framework, OIA has updated its divestment strategy for the next five years, covering 2025 to 2029. OIA has also established steering committees within its subsidiaries to ensure efficient management of divestment operations. The plan includes approximately 30 investments that will be divested either through public offerings in sectors such as energy, logistics, utilities, and infrastructure or through direct sales to strategic investors in sectors including aquaculture, agriculture, and mining.

With investments spanning more than 30 countries, OIA aims to remain at the forefront of the rapidly changing global economic landscape to bolster the national economy and elevate Oman’s global competitiveness. By adopting forward-thinking economic policies, OIA is opening new investment opportunities aligned with Oman’s Vision 2040, which seeks to enhance economic diversification, attract foreign direct investments, and foster partnerships with local enterprises to drive greater sustainable economic prosperity for the Sultanate of Oman.

Scope Markets, the brand used by a globally regulated group of brokers, has today announced the launch of two new CFD products for trading indices in both Dubai and Abu Dhabi.  In what is seen as being an industry-first, Scope Markets clients can now access unique instruments – the AD15 for Abu Dhabi and the DXBI for Dubai – with prices reflecting movements in the respective underlying regional stock markets, via a single transaction and from almost anywhere in the world.

Pavel Spirin, Chief Executive Officer at Scope Markets, commented: “We are genuinely excited to be offering clients the ability to gain exposure to both the Dubai and Abu Dhabi equity indices via a CFD. It’s no secret that the GCC economies are growing rapidly, fueled in part by more companies listing on the relevant regional markets. We know that investors from across the world want an easy way to add UAE exposure to their portfolios – these new products deliver that reality.”

Whilst many other global equity markets struggled over the summer – the Dow 30 added around 5% from the start of June to the end of August and the FTSE-100 was little changed – the Abu Dhabi benchmark index grew by 10% whilst the Dubai equivalent saw its value grow by more than 15%. The price action here, along with the frequent oversubscription of new equity offers in the region – in March 2024 the Parkin IPO was 165 times oversubscribed – underlines how demand for quality investments in the region continues to outstrip supply.

Mitesh Vaghela, Chief Business Officer at Scope Markets, added: “At Scope Markets we have now developed these proprietary instruments which we believe provide a genuine market differentiator for us as a brokerage. We know the demand for investing in both Dubai and Abu Dhabi is there so we will use feedback from these products to see how we can further refine the offering and look at expanding the product suite to allow access into other exchanges across the GCC.”

Growth data from exchange operator Dubai Financial Market (DFM) noted that in 2023, foreign investors accounted for 47% of trading activity, whilst 73% of new investors were from overseas.

The new equity index products will be available for Scope Markets clients to trade on both a long and short basis, with leverage of up to 1:20 offered. These instruments complement the addition of more than 80 Abu Dhabi and Dubai listed single equity CFDs which have been added to the broker’s tradable universe over the last twelve months.

In a strategic step towards achieving its sustainability goals, Gargash Group has partnered with Mashreq. This collaboration, officially inaugurated with an MoU signing ceremony at the Mercedes-Benz Brand Center in Dubai Design District, was crystalized with their debut Green Loan that was extended earlier for a number of projects across Gargash Group. The two institutions are also in discussion on future ESG integration initiatives for the Group, including but not limited to other Sustainability-Linked facilities.

By obtaining its first Green Loan, Gargash Group aligns itself with a prestigious and select group of UAE enterprises that have leveraged impactful and sustainable financing solutions. The partnership aims to promote and advance robust sustainability agendas for both Gargash Group and Mashreq by setting and achieving ambitious sustainability targets.

As a tangible expression of these goals, Gargash Group is planning solar installations across 25 sites in the next three years, with an energy potential totaling over 5 MW. While 5 sites are expected to be completed as early as 2025, plans are also underway to execute energy efficiency projects spanning across 25 of its sites. Finance requirements for these plans are to be covered through the Green Loan facility from Mashreq.
Walid Hizaoui, Group Chief Strategy Officer at Gargash Group, shared his insights at the event, stating, “This partnership marks a critical milestone in our sustainability journey. With a reliable and trusted banking partner supporting us, we are wholeheartedly committed to integrating sustainability practices into every aspect of our operations for a greener future. We have meticulously scoped our businesses and implemented the necessary infrastructure to monitor our progress towards decarbonization—our ultimate long-term goal. This initiative not only underscores our unwavering commitment to reducing the nation’s carbon footprint but also aligns with the UAE Green Agenda 2030 and UAE Net Zero Strategy 2050, promoting sustainable practices across the board.”

Thomas Schulz, General Manager Mercedes-Benz Passenger Cars at Gargash Enterprises, added, “This is an important milestone that will help drive the Mercedes-Benz brand forward, a brand long rooted in values of innovation and sustainability. This collaboration is a main catalyst fueling our commitment to achieve net zero carbon emissions by 2030 in the UAE. Our commitment to this objective reflects our dedication to the brand and our responsibility to the UAE, as we push forward in sustainable mobility. With a solid framework in place, we are confident our efforts will drive meaningful progress towards a greener future.”

Karim Amer, Head of Automotive Sector at Mashreq, commented, “Mashreq is proud to support Gargash Group’s transition towards a sustainable future through their inaugural Green Loan and other potential Sustainability-Linked facilities. This financing is designed to enable remarkable reductions in emissions and accelerate decarbonization initiatives which we have been actively driving across the Automotive sector, through proactive engagement with our clients on both formulization as well as execution of their Sustainability Strategies. By aligning financial incentives with sustainability objectives, we aim to enhance operational efficiencies for our partners and set a benchmark that encourages other organizations to integrate energy efficiency and sustainability into their core strategies.”

The partnership between Gargash Group and Mashreq is a significant step forward in the collective effort to achieve a sustainable future and it also demonstrates their commitment to a more responsible and environmentally conscious business landscape.

Standard & Poor’s (S&P) has raised Oman’s credit rating to ‘BBB-‘ from ‘BB+’, with a stable outlook, citing improvements in the country’s financial performance. This upgrade marks Oman’s return to investment-grade status after nearly seven years, following a downgrade due to the global drop in oil prices and the impact of COVID-19.

S&P emphasized that the upgrade reflects Oman’s sustained efforts to strengthen its public finances through financial and economic reforms, as well as government restructuring. These initiatives have restored the balance between revenue and public spending, as detailed in the medium-term financial plan, resulting in financial surpluses. Furthermore, the government’s focus on reducing public debt, improving governance of state-owned enterprises, and lowering debt levels contributed to the positive outlook.

Higher oil prices and the financial measures taken have strengthened Oman’s fiscal position, providing flexibility to manage external shocks. S&P expects Oman’s budget to generate financial surpluses of 1.9% during 2024-2027, assuming Brent crude prices average $80 per barrel from 2025 to 2027. This would allow the government to continue reducing public debt and building financial reserves. Oman’s real GDP is projected to grow by 2% annually, with increased oil production stimulating non-oil sector growth by about 2% per year. The current account is expected to maintain surpluses, averaging 1.2% of GDP during 2024-2027.

S&P emphasized Oman’s commitment to reducing public debt, predicting it will reach 29% of GDP by 2027, indicating that liquid assets would remain around 36% of GDP until that year.

Inflation is expected to stay moderate, averaging 1.4% annually during 2024-2027, following a low of 0.9% in 2023. Credit to the private sector expanded by 4.9% in 2023, and lending is projected to grow by 5%-6% annually, supported by favorable credit conditions.

S&P noted that government efforts to manage state-owned enterprises since 2020 have improved governance, operational efficiency, and financial performance, with increased profitability and reduced debt levels. Establishing Oman Energy Development Company (EDO) and Integrated Gas Company (IGC) has also enhanced government financial accounts by reflecting net revenues after oil and gas sector expenses.

Oman’s credit rating could improve further over the next two years if the government continues managing public finances as planned, increasing non-oil revenues and improving public expenditure efficiency. These measures would support GDP growth, driven by ongoing momentum in non-oil sectors and continued efforts to promote economic diversification and capital market development.

Sultan bin Salim Al Habsi, Oman’s Minister of Finance, stated that the upgraded rating reflects the government’s commitment to fiscal balance and financial sustainability. This rating enhances confidence in Oman’s economy and investment appeal, following positive results from financial reforms, including the Public Debt Law, which strengthened governance and improved the investment environment.

The Minister added that the government remains committed to strengthening public finance indicators and utilizing financial surpluses to promote economic and social prosperity. These achievements result from collaboration between government units, private sector partners, and civil society institutions.

The Statistics Centre Abu Dhabi (SCAD) has released preliminary estimates showing a 4.1% growth in the emirate’s GDP for the second quarter of 2024 compared to the same period last year.

This growth is primarily driven by the ongoing expansion of non-oil sectors, highlighting the success of Abu Dhabi’s economic diversification initiatives.

According to the report, Abu Dhabi’s GDP in Q2 2024 reached a new high, exceeding AED 297 billion, reflecting the emirate’s continued economic strength. This growth also bolstered the non-oil economy by 5.7% in the first half of 2024, resulting in an overall economic growth of 3.7% compared to the first half of 2023.

Non-oil activities in Abu Dhabi saw steady progress, with non-oil GDP rising by 6.6% in Q2 2024, reaching a record AED 164.2 billion. This pushed the non-oil sector’s share to more than 55.2% of the total economy, its highest level since late 2014.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “The continued strong performance of our economy over the past years is a testament to its resilience and agility in responding positively and timely to mega shifts in the global economy as we are accelerating the transition to diversified, smart, and sustainable economy. Our economic diversification efforts have positioned Abu Dhabi as a rising economic powerhouse and a global magnet for talents, businesses, and quality domestic and foreign investments.

“Our initiatives to further enhance a vibrant, globally competitive, and entrepreneurial ecosystem to generate opportunities for all, enabling them to reach their full potential are delivering outstanding results. As we move to the next phase of development, our soaring ‘Falcon Economy’ is leveraging advanced technologies to accelerate the economic growth, while placing human development and sustainability at the core of our initiatives.”

Abdulla Gharib Alqemzi, Director-General of SCAD, said, “The statistical estimates of Abu Dhabi’s GDP for Q2 2024 reflects a remarkable progress, with significant contributions from key sectors such as manufacturing, construction, and finance. These sectors achieved their highest quarterly values, pushing non-oil GDP to a record AED164.2 billion, a substantial rise from AED154 billion in the same period last year. This performance showcases the resilience of Abu Dhabi’s economy in adapting to global challenges, reinforcing the emirate’s attractiveness as a hub for sustainable investment.”

According to the estimates, construction activities grew by 11.5% in Q2 2024 compared to the same quarter last year, reaching a record AED 27.5 billion. The sector’s contribution to GDP rose to 9.3%, the highest since 2015.

Manufacturing activities increased by 2.6% in Q2 2024 compared to the same period last year, with a quarterly value of AED 26.8 billion, representing 9% of the emirate’s GDP.

The finance and insurance sector experienced an impressive 13.4% growth in Q2 2024 compared to Q2 2023, contributing 7.4% to GDP, with its value hitting a record AED 22 billion, further solidifying Abu Dhabi’s global investment competitiveness.

The wholesale and retail trade sector grew by 3.3% in Q2 2024 compared to Q2 2023, contributing 5.5% to GDP and reaching a value of AED 16 billion.

Transportation and storage grew by 15.2%, and real estate activities increased by 5.5%, reaching AED 7 billion and AED 10 billion, respectively, and contributing 2.4% and 3.4% to GDP in Q2 2024.

The information and communication sector posted a record value of AED 8.5 billion, growing by 4.4% in Q2 2024 compared to the previous year, contributing 2.8% to the emirate’s total GDP during that period, underscoring the sector’s importance to Abu Dhabi’s future growth.

Abu Dhabi’s non-oil economy has shown remarkable growth in recent periods, with a 4.7% quarterly rise in Q1 2024 and a 9.1% annual increase in 2023, driven by the strong performance of sectors like industry, finance, and construction.

EDB partners with Redington to accelerate digital transformation and ensuring data sovereignty across the Middle East and Africa (MEA). As AI adoption accelerates in the region, this collaboration will enable enterprises to harness AI while maintaining control over their data in accordance with local regulations.

The MEA region is experiencing rapid technological advancements, with a growing focus on open-source technologies to drive growth and transformation. AI spending in the region is expected to grow at an annual rate of 37%, reaching $7.2 billion by 2026, increasing the demand for secure and scalable data platforms. Through their partnership, EDB and Redington will provide enterprises with solutions that streamline transactional, analytical, and AI workloads while ensuring compliance in highly regulated industries.

At GITEX Global 2024, EDB will present EDB® Postgres® AI, a unified platform designed to optimize transactional, analytical, and AI performance. This platform enables organizations to achieve high availability, enhance security, and address the challenges of hybrid and multi-cloud environments, all while complying with regional data regulations.

“Organizations need to develop, consume, and operationalize their AI and data for their own platforms, wherever, however, and whenever they want,” said Stew Hale, Global Director of Channel Sales at EDB. “As open-source demands rise, our partnership with Redington brings Postgres to more MEA businesses, helping them harness their data’s full potential while keeping it secure and sovereign.”

Kash Rafique, Vice President of Sales, Middle East and Africa at EDB, added, “This partnership goes beyond technology it’s about empowering organizations to grow and thrive in an increasingly complex and competitive AI landscape. By aligning our expertise with Redington’s reach, we’re addressing the critical need for flexible, compliant, and future-proof data solutions.”

Redington, as a key EDB distributor in the region, will enable enterprises to modernize their infrastructures and deliver AI and data solutions that are purpose-built for MEA’s unique regulatory landscape. This partnership underscores the growing role of open-source technology in driving innovation while maintaining the highest levels of data control.

“Businesses in the Middle East and Africa need innovative solutions that are both powerful and secure. Our partnership with EDB is a strategic move to address this demand by leveraging AI and data sovereignty, empowering organizations to harness technology without compromising privacy or compliance,” said Dharshana Kosgalage, Executive Vice President, Technology Solutions Group at Redington MEA. “At Redington, we’re on a mission to close the gap between the rate of innovation and the rate of adoption by delivering a comprehensive suite of solutions that enable businesses to innovate at scale, optimize their operations, and stay ahead of the competition.”

EDB’s commitment to the region reflects its deep understanding of MEA’s digital transformation goals. As the region continues to prioritize open-source solutions, the EDB Postgres AI platform is uniquely positioned to meet these demands by providing enterprises with the flexibility, scalability, and security needed to succeed in the AI-driven economy.

AJEX Logistics Services (AJEX), a leading Middle East-based specialist in express distribution and shipping solutions, is pleased to announce a new strategic partnership with prominent logistics brand Widect, a 100% subsidiary of Turkish Airlines and highly valued partner in e-commerce space. This agreement aims to expand shipping solutions on the Turkiye-(formerly Turkey)–to-Middle East route and enhance last-mile delivery services for the growing e-commerce sector across MENA.

As a 100% subsidiary of Turkish Airlines, Widect operations integrate the extensive flight network of Turkish Airlines, providing access to 340 destinations worldwide. Thanks to this latest collaboration, AJEX customers will benefit from daily flights between Istanbul and Riyadh, Jeddah, and Dammam, enhancing the speed of services including last-mile deliveries.

Meanwhile, AJEX will provide its last-mile expertise, including a robust fleet, infrastructure, and distribution services, alongside customer service excellence, all supported by state-of-the-art technology for fast and flexible deliveries. Together, the partners will leverage their combined capabilities to develop joint projects that expand service offerings and improve operational efficiencies for e-commerce businesses serving the MENA region.

Trade between Turkiye and Saudi Arabia is on the rise, with both countries serving as major aviation hubs in the region. Direct flights between Istanbul and Riyadh typically take around three to four hours, facilitating efficient business and trade connections. In 2021, Turkish exports to Saudi Arabia reached approximately USD 3 billion, while the trade volume between the two countries rose to USD 8.2 billion in 2022. This upward trend is expected to continue, highlighting the strengthening economic ties between the nations.

The growing e-commerce markets in both countries create ample opportunities for collaboration, as Turkish products gain traction in Saudi Arabia and vice versa. AJEX is well-positioned to support businesses with its comprehensive suite of customer-centric solutions in reaching these key markets, leveraging its expertise in the express and e-commerce categories to facilitate efficient trade flows.

“United by a commitment to delivering superior logistics solutions based on speed, reliability, and agility, AJEX is delighted to announce our new partnership with Widect,” said Mohammed Albayati, CEO of AJEX Logistics Services.

“Together, we will facilitate smoother and more efficient trade flows between Turkiye and the Middle East, empowering businesses to thrive in our dynamic markets, and underscoring Saudi Arabia’s position as a key player in the logistics landscape,” he added.

“At Widect, we are collaborating with AJEX to leverage our shared resources and expertise to deliver cutting-edge products that can drive the industry forward. As e-commerce continues to boom and bilateral trade grows, we look forward to our continued partnership to deliver enhanced services and ever greater value to businesses across the region,” Mr. Enes Yilmaz, Managing Director of Widect added.

The Saudi Ministry of Finance announced the release of the Pre-Budget Statement for Fiscal Year 2025, projecting total expenditures of SR 1,285 billion and total revenues of SR 1,184 billion, resulting in a budget deficit of SR 101 billion, or 2.3% of the country’s Gross Domestic Product (GDP).

The statement highlighted the government’s commitment to increasing strategic transformational spending aimed at achieving economic diversification and sustainable growth. It estimated total revenues for 2025 at SR 1,184 billion, with expectations that they will rise to SR 1,289 billion by 2027. Meanwhile, total expenditures are projected to increase from SR 1,285 billion in 2025 to SR 1,429 billion by 2027.

In light of Saudi Arabia’s economic developments and the implementation of various financial and economic initiatives, as well as fiscal policies aimed at promoting budgetary stability and sustainability for FY 2025, the ministry emphasized the importance of these measures.

The ministry also pointed out that the reported GDP growth was driven by the expansion of non-oil sectors, which has fostered the growth of key industries such as tourism, entertainment, transportation, logistics, and manufacturing. This growth has led to an improved quality of life, greater private sector empowerment, and a historic reduction in unemployment.

These developments have positively influenced international organizations and credit rating agencies’ forecasts for Saudi Arabia’s economic performance. The statement also highlighted projections for 2024, which include an anticipated real GDP growth of 0.8%, supported by a 3.7% increase in non-oil activities. A recent reduction in interest rates is expected to boost demand and further stimulate economic growth. Additionally, inflation, as measured by the consumer price index, is forecasted to reach approximately 1.7% by the end of 2024.

Finance Minister Mohammed Al-Jadaan reaffirmed the government’s commitment to targeted spending on essential services for citizens and residents, alongside strategic projects that promote economic growth and sustainable development. He noted that Saudi Arabia is expected to see positive growth rates in 2025 and over the medium term, as ongoing reforms and initiatives under Saudi Vision 2030 continue to diversify the economy, expand the private sector, and support emerging industries, thereby increasing business opportunities and job creation.

Al-Jadaan emphasized the government’s long-term fiscal planning approach, ensuring sustained focus on strategic transformational spending to achieve economic and sustainable growth goals. He also underscored the flexibility of public finances in addressing medium- and long-term challenges, highlighting the critical role of the Public Investment Fund (PIF) and the National Development Fund (NDF) in maintaining economic stability.

He further added that the optimistic outlook for the Saudi economy in 2025 is a continuation of the positive momentum seen in recent years. The Pre-Budget Statement forecasts real GDP growth of 4.6% for 2025, reflecting the Kingdom’s commitment to implementing its ambitious strategies, boosting investor confidence, and enhancing its economic standing both regionally and globally.

Despite a global economic slowdown, ongoing challenges, and geopolitical tensions, Al-Jadaan noted that Saudi Arabia’s fiscal position remains strong, characterized by safe levels of government reserves, manageable public debt, and a flexible spending policy that can help the country navigate future crises.

Al-Jadaan also stated that the government plans to continue borrowing, in line with its approved annual borrowing plan, to finance the projected budget deficit and repay debt maturing in FY 2025. Additionally, the government will explore market opportunities for financing activities, including alternative financing mechanisms. He indicated that the public debt portfolio is expected to grow at a measured pace to ensure debt sustainability, in line with increased spending to accelerate the implementation of programs and projects aligned with Saudi Vision 2030.

This Pre-Budget Statement, the seventh consecutive release, is part of the Kingdom’s ongoing efforts to enhance transparency and fiscal disclosure in public finances, and it underscores the government’s commitment to completing reforms that have strengthened its fiscal position amid global economic challenges.

Dorsch Global, a leading international consulting and engineering organization operating across Europe, MEAA, the United States, and the United Kingdom, has appointed a new Global Executive Board to spearhead the company’s global strategic initiatives.

Ayman Haikal, an experienced leader with over 33 years in executive management, engineering, project management, and business development, has been named Chief Executive Officer of Dorsch Global. Haikal also holds the dual role of Middle East, Asia, and Africa Region CEO, underscoring the significant emphasis Dorsch Global places on the MEAA region, particularly within the GCC and Northern Africa.

With more than 30 years of his career spent at Dorsch, Haikal has a proven track record of driving significant organic and inorganic growth within the organization, managing signature, complex city-wide projects, and expanding into new sectors and geographies, especially in the United Arab Emirates that Haikal calls his home and the land of opportunity.

CEO of Dorsch Global, Ayman Haikal, said: “The UAE truly is a land of opportunity, fostering growth for both its residents and businesses by providing a dynamic environment where innovation and entrepreneurship thrive, with its forward-thinking policies, strategic location, and world-class infrastructure, the UAE continues to attract talent and investment from around the globe, creating a vibrant ecosystem where ambitious individuals and companies like Dorsch can flourish.”

Haikal’s journey exemplifies how the UAE’s commitment to progress and development enables both personal and professional success. Haikal, through Dorsch MEAA—which includes Dorsch Middle East, Engineering Consultants Group (ECG), Dorsch India, and Dorsch Asia—is overseeing several landmark mega projects at various stages of completion across the MEAA. Notable projects include development of a wide array of major urban communities all across the UAE, massive Operation and Maintenance contracts for the entirety of Abu Dhabi City inclusive of the Western Region and Al Ain, the Intelligent Transportation System for the Riyadh City, the development of Lusail City in Qatar, various airports in India, smart infrastructure for Egypt’s New Capital City, and the management of design and construction for the Urban Forestation Green Riyadh initiative. These projects underscore the company’s expertise and substantial contributions to the region’s infrastructure and economic growth.

CEO of Dorsch Global, Ayman Haikal, said: “In our worldwide family at Dorsch Global, which includes experts from over 70 nations, we unite under a shared vision of building a sustainable tomorrow through innovation, collaboration, and service excellence. This fuels our ability to consistently expand our services, our market sectors and significantly develop our skills to excel in our domains. Our current ambition is to grow our standing as a pioneering and efficient planning and consulting company, while we look to greater success together with our clients and partners in all 50 countries.”

Joining Haikal on the new Global Executive Board are Tanja Baur as Chief Operating Officer, and Jon Grady as Chief Financial Officer. The new board, composed of highly experienced members, is set to steer Dorsch Global towards a prosperous future grounded in innovation.

After a period of strong growth and several acquisitions, the leading worldwide planning and consulting company has strategically realigned its workstreams. In late 2023, the former RSBG Infrastructure Technologies GmbH (RSINTEC) was renamed Dorsch Global GmbH, of which Dorsch MEAA is a part. This connection strengthens its operational synergy while expanding its reach in the MEAA region, and leverages Dorsch Global’s extensive experience and resources to enhance project delivery and client satisfaction.

Dorsch Global, with over 25 brands and over 7,200 employees, manages 12,000 projects across 50 countries, designing and overseeing projects worth over 30 Billion euros in 2023. With a strong presence in the MENA region, particularly in the UAE, KSA, and Egypt, Dorsch MEAA, supported by over 5,000 regional employees, drives infrastructure development and economic growth, shaping sustainable communities and addressing complex challenges globally.