The Art Market Is Tanking. Sotheby’s Has Even Bigger Problems.
The auction house, owned by highly leveraged billionaire Patrick Drahi, is pushing off payments, awaiting a financial lifeline from an Abu Dhabi fund
10 min
The art market is grinding through a rough patch, and no one is feeling the pain more than Sotheby’s.
The sales downturn, driven in part by China’s economic slowdown, wars and volatile U.S. elections, has hit at a crunchtime for the auction house’s highly leveraged billionaire owner, Patrick Drahi , who is fighting fires amid restructuring in his broader telecom empire, Altice .
Sotheby’s had been riding a rollicking art market wave in recent years, bringing in at least $7 billion in sales annually and setting record-level prices for trophies by Gustav Klimt and René Magritte.
Now, amid signs cash is running low, it is pushing off payments to its art shippers and conservators by as much as six months. Several former and current employees said Sotheby’s this spring gave senior staffers IOUs instead of their incentive pay. And at a meeting this month of higher-ranking executives, some executives expressed worries about whether the company would be able to keep paying its employees on time, according to a person familiar with the discussion.
Drahi has at the same time been under pressure to slash the crushing debt of roughly $60 billion at Altice. The conglomerate’s French arm is now going through restructuring talks with creditors, with the U.S. arm expected to enter restructuring talks later. Some Wall Street analysts had hoped Drahi might sell part of Sotheby’s to help bolster Altice.
Sotheby’s itself carries $1.8 billion in debt, almost double the level it had before the Franco-Israeli billionaire purchased it in 2019. The value of its bonds swooned in the first half of the year as investors worried that declining sales and higher interest rates would choke off the company’s cash flow.
The auction house received a lifeline with a $1 billion deal to sell a stake to Abu Dhabi sovereign-wealth fund ADQ , announced Aug. 9 but not expected to close until later this year. At the time, Drahi said he would contribute an undisclosed amount as part of the deal.
As it awaits the funds, Sotheby’s is toeing a high-wire act with an uncertain outcome.
Charles Stewart , Sotheby’s chief executive, dismissed fears about Sotheby’s financial standing as overblown, and the company disputed the meeting with higher-ranking executives occurred. Stewart said the company’s bonds, which have rebounded in price since the ADQ rescue was announced, are proof that Sotheby’s has smoothed over any worries. He said the ADQ investment will position the house for growth moving forward. “It’s a massive credit positive,” he said.
A Sotheby’s spokeswoman said: “Under Mr. Drahi’s ownership, Sotheby’s is significantly larger, more diversified and more profitable than ever before. During this period, we have invested hundreds of millions to enhance our facilities, technology and expand our offerings to clients.”
ADQ declined to comment.
The crisis at Sotheby’s comes at a time when the entire art market is reeling . Over the past year, collectors who see art as a financial asset have winced as higher interest rates and inflation made it more expensive to trade art. Contemporary art buyers have also suffered sticker shock after years of paying ever-higher prices for emerging artists—who may never pay off. Some smaller galleries, who rely on collectors to vouch for unknown artists, have shuttered, while dealers have reported lacklustre sales at art fairs.
Those factors have hurt collectors’ overall confidence. “I don’t feel like there’s a bunch of collectors waiting out there to save the day this time,” said Dallas collector Howard Rachofsky.
Growing debt load
Drahi, 61 years old, is famous for taking on a mountain of debt to build telecommunications empire Altice, which operates in the U.S. and Europe. He borrowed from Wall Street when interest rates were low, but now that rates have risen sharply, he has started selling off chunks of his companies to lower his debt burden. Last month, his Altice UK sold a 24.5% stake in its BT Group to the Indian international investment arm of Bharti Enterprises in a deal valued at roughly $4 billion.
Drahi used a similar high-debt strategy to buy Sotheby’s in 2019 for $2.7 billion. Drahi issued $1.1 billion in new bonds and loans to finance the deal, and separately also assumed some portion of Sotheby’s existing $1 billion debt.
He has since spent lavishly, including signing a deal to pay at least $100 million for New York’s Breuer building, a Madison Avenue showpiece once home to the Whitney Museum of American Art and temporarily used by both the Metropolitan Museum of Art and Frick Collection. The company is planning to move in at the end of next year and to lease out part of its current glassy headquarters closer to the East River in Manhattan. Sotheby’s has spent tens of millions more to renovate new luxury-retail-style spaces in Paris and Hong Kong.
Drahi also expanded Sotheby’s ability to auction multimillion-dollar homes by buying a chunk of real-estate seller Concierge, and added RM Sotheby’s, an entity that sells high-end cars.
At the same time, the owner has pulled funds out of the company via dividends. In total since the purchase, Sotheby’s has paid out $1.2 billion of dividends to a parent company controlled by Drahi, according to New Street Research.
The ballooning debt didn’t draw much attention during flush years when an influx of newly wealthy collectors from across China, Russia, the Middle East and even the world of cryptocurrency were clamouring after Sotheby’s offerings.
That changed when the market cooled. Sotheby’s told its bondholders the auction portion of the business had a loss of $115 million in the first half of the year, compared to a $3 million profit in the first half of 2023, according to a copy of Sotheby’s unaudited financials for the first half of the year reviewed by The Wall Street Journal.
Rival Christie’s, owned by luxury magnate François Pinault , has also taken a hit, with its auction sales dropping nearly a quarter during the first half of the year.
Sotheby’s adjusted operating free cash flow fell to $144 million in the 12 months ended June 30, a 43% decline from the same time last year, according to data from New Street Research. The figure measures whether a company is making enough money to pay its bills and turn a profit.
Credit rating firm Moody’s Investors Service in February knocked down the ratings for Sotheby’s bonds to B3, one of its lowest categories of junk debt, specifically citing the dividends paid out. “The downgrade also reflects governance considerations, particularly the company’s decision to continue dividend payments out of its credit group in 2023 despite its operating performance deterioration,” Moody’s said in its decision. S&P downgraded the debt into deep junk territory in June.
Stewart said the company’s credit rating has been lower since the Drahi purchase. He said its updates to bondholders revolve around its auction performance only and don’t include fees from the company’s real-estate holdings or financial-services arm, which Stewart said remain in the black. He declined to divulge the company’s full financial figures.
Stewart also said the dividends remain in the Sotheby’s ecosystem and aren’t being redirected to shore up Drahi or his other businesses.
Drahi’s arrival
Sotheby’s was flush with cash but lagging behind Christie’s in 2018 when Tad Smith, the auction house’s then-CEO, suggested to his board that it find a buyer. The company had been public for three decades, but Smith believed the demands for public shareholder returns hampered its ability to go toe-to-toe with the bigger and privately held Christie’s.
In early 2019, the board let Smith make overtures to prospective buyers, including an entity connected to Abu Dhabi’s royal family that expressed interest, according to a person familiar with the negotiations. Drahi moved more quickly and emerged as the winner.
At first, the art establishment didn’t know much about Drahi. The self-made billionaire was born in Morocco, educated in France and has homes in Switzerland and Israel. He was familiar to Sotheby’s staffers in their Tel Aviv office but wasn’t widely known in art circles.
At the time, he was a traditional collector of 19th- and 20th-century artists rather than trendier, contemporary ones, owning pieces by Pablo Picasso, Henri Matisse and Marc Chagall. But he didn’t sit on major museum boards or pop up regularly on the art-fair circuit.
The Sotheby’s purchase marked Drahi’s first foray into luxury. The art world wondered if he would manage a house that started off auctioning books in London in 1744 the same way he ran his broadband communications companies, where he was known for aggressively cutting costs and using debt to fuel ambitious expansions.
Drahi told Sotheby’s he saw the company as an investment for his family, regularly dismissing rumors he was teeing up Sotheby’s to be resold. In 2021, Sotheby’s promoted his son Nathan, then 26, to run Sotheby’s operations in Asia, a key market.
As part of the sale, Sotheby’s divided its various endeavors—such as its real-estate arm and its financial services arm, which lends against people’s art collections—into affiliated but separate entities from the main unit, which handles Sotheby’s auctions and private art sales.
Stewart said Drahi’s move was intended to keep each division nimble.
The art-world ecosystem noticed Drahi’s arrival in other ways. Soon after the sale, a network of smaller companies that auction houses typically enlist to conserve, frame, crate and ship its art around the world said they got word that the house would be lengthening its pay schedules, from a typical month to two or more. One conservator said payments started to arrive six months after a job was completed.
Sotheby’s also started paying sellers more slowly than its rivals. In the past, both Sotheby’s and Christie’s asked winning bidders to pay for their pieces within 30 business days of a sale, and then paid sellers five days later. Sotheby’s changed its contracts to allow it to pay sellers 15 days later, according to sellers familiar with the house’s contracts. The move allowed the house to hold the funds in its coffers longer.
Sotheby’s said its processing deadlines have been in place for many years to allow the company to adequately process payments.
Pay for top talent
When the pandemic hit, Drahi and his management team reoriented the company to sell art online, a pivot Sotheby’s is credited with embracing faster than its rivals.
Sotheby’s also started laying off staff during the lockdown, and continued to do so after the pandemic. When the ever-swirling calendar of fairs and museum openings and biennials got under way again, advisers including Philip Hoffman of the Fine Art Group said they noticed fewer Sotheby’s staffers turned up. The company would send one or two rainmakers, not a whole team.
Stewart confirmed the pandemic-related staff cuts “like many other companies” and winnowed travel were meant to make the company more efficient, though he said it remains “mission critical” to put its top specialists in front of collectors.
Drahi needed Sotheby’s key dealmakers to remain in place. High-end art deals at auction houses are wrangled primarily by a handful of executives and specialists able to cultivate an air-kiss closeness with collectors. They also must be able to discern a fake Picasso from a real one, and price it to sell well in good markets and bad.
In 2021, Drahi revised the incentive pay program for these top performers. In exchange for accepting an immediate pay cut of up to 20%, employees were told they could expect a cash payout in three years based on the company’s performance and representing up to half of their total compensation.
Some powerful executives still left, dealing a blow to the auction house. Patti Wong , Sotheby’s former international chairman for Asia, now works as a private adviser, and Brooke Lampley , its former global chairman of fine art, is now a senior director at the blue-chip gallery Gagosian.
When the delayed payout came due, staff were told in conference calls—some say last fall and others say in March—that it needed to be postponed; enrollees were issued promissory notes this spring instead, according to several former and current specialists. Specialists said they now are hoping to get paid by year’s end with a portion of the Abu Dhabi funds.
The company disputed the description of the incentive program but declined to give further details.
New fees for sellers
In February, Sotheby’s shocked the art world when it fundamentally restructured the way it collects fees for works that it auctions.
Both Sotheby’s and Christie’s, in efforts to bring sellers to their doors, often waived their fees. They even shared with sellers increasingly fatter slices of the fees they charge buyers—which can add up to roughly 27% to a work’s winning price.
At the same time, buyers have bristled over the fees they pay. Rachofsky, the Dallas collector, said he has long agitated that “auction fees are unsustainably high.”
Sotheby’s new fee plan, which went live in late May, now charges buyers a flat 20% for anything it sells for $6 million or less, and 10% for anything it sells for more. For sellers, Sotheby’s charges a fee of 10% on the first $500,000 of anything it sells for $5 million or less. Terms for larger deals continue to be negotiated.
Christie’s and smaller house Phillips said they also charge an undisclosed seller’s commission, but their fee is negotiable.
Stewart said the goal is to create a system that is “simpler and fairer.”
It’s too soon to tell if Sotheby’s new fee structure will help or hamper its effort to win consignments. Sotheby’s has landed the prized estate of the season, an estimated $200 million collection amassed by Palm Beach beauty mogul Sydell Miller that includes a Claude Monet water lily scene estimated to sell for $60 million. The collection will headline the November sales.
Art adviser Anthony Grant said one of his collectors reasons that Sotheby’s might hustle harder to find bidders for each work now that they’re charging sellers a fee to do so. But Grant said he worries the change could also steer sellers of midmarket pieces to other houses who may not charge them extra for anything.
“It’s one more thing that’s gotten harder for them,” he said of Sotheby’s, where he once worked.
Asia is expected to play a crucial role in Sotheby’s prospects. In recent years, newly wealthy bidders in Asia—spanning mainland China to Seoul to Singapore—have been relied upon to mop up art at the highest levels even when collectors elsewhere held back. Now, China’s economy has slowed, sparking fears about its buyers’ willingness to splurge on blue-chip art.
Instead of scaling back, the major auction houses are all doubling down on the region. Sotheby’s and Christie’s both just opened luxurious new spaces in Hong Kong. Sotheby’s Maison space in Hong Kong’s Central neighborhood, opened in late July, said it has already had 300,000 visitors.
This month, on the eve of what was supposed to be its inaugural fall sale series in Hong Kong, the house announced it was pushing back these sales to November. Advisers who work in the region said the move left the impression that the house had failed to gather enough marquee material.
Sotheby’s said the calendar shift gives it more time to organise shows and a sale lineup, and said the delay wasn’t because the art was too tough to source. It cited its plan to sell an estimated $30 million Mark Rothko from 1954, “Untitled (Yellow and Blue),” in Hong Kong later this year.
Collector and dealer Hong Gyu Shin initially consigned an Oscar Wilde manuscript of “The Picture of Dorian Gray” to Sotheby’s to offer in its Hong Kong sales, he said, but he later changed his mind. He said he wanted the auction house to revel in the piece, which contains Wilde’s own handwritten edits, and he wanted to brainstorm the best way to position it to buyers. Instead, there was little conversation after the paperwork was signed.
“Specialists used to be so excited,” he said, “but now they just slap an estimate on it. When you have historical work, it’s a form of art to sell it.”
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
Nolte Küchen, Germany’s leading premium kitchen brand, is expanding in the UAE under its new entity Nolte UAE, investing AED 25 million to launch a flagship showroom by 2026 and strengthen its direct presence — reaffirming its “Made in Germany” quality, innovation, and sustainability.
Emirates NBD to acquire a 60% stake in India’s RBL Bank for $3 billion, marking the largest cross-border deal in India’s financial sector and reinforcing the UAE bank’s expansion across high-growth markets.
Egypt submits a new state offering program to the IMF, featuring major divestments in renewables, finance, logistics, and airports, as part of its economic reforms — with plans to cut debt to 75% of GDP and attract $2.5B in global investments.
Saudi Arabia’s capital markets are booming, with record bond and IPO activity fueling Vision 2030’s investment drive and advancing diversification beyond oil.
4 min
Saudi Arabian capital markets are on a tear this year, with the number of bond and equity deals on course to break all records as capital pours into the country to finance trillions of dollars of investments in new cities, new industries – and (in theory at least) a new economy no longer dependent on oil.
Bond markets have led the charge, with 76 deals this year, up 77% on last year’s already record tally. The amount raised has surpassed US$70bn, which is up 40% on this point a year earlier, after US$20bn of deals from the Saudi government and US$8bn from oil giant Saudi Aramco.
Equity markets have also been on a roll, with 29 IPOs – a record for this point in the year – raising US$3.6bn amid a frenzy of buy orders. The US$1.1bn listing in May of airline Flynas was covered 100 times and the US$520m IPO of developer Umm Al Qura in March was covered 200 times.
While loan volumes are down on last year’s record, there has been some solid deal activity such as the US$7bn facility signed in January by Saudi sovereign wealth fund, Public Investment Fund.
As a result of all this activity, investment banks are set for a bumper haul in fees, with senior bankers pointing to Saudi as a particular highlight during a year that started slowly but has since taken off.
Critical role
Capital markets are slated to play a critical role in meeting the ambitious targets of the country’s transformational Vision 2030 program, announced amid much fanfare almost a decade ago. Moody’s predicts US$2trn of investment will be needed over the next four years if the country is to meet those goals.
“A growing economy and the financial demands of the mega projects underway are hoovering up cash faster than the domestic system can supply it,” said Nick Smallwood, a strategist at M&G, who says the country’s banking system is struggling to keep pace with the scale of investments.
It is little wonder given the size of some Vision 2030 projects. Neom, a futuristic city on the Red Sea, is projected to cost US$8.8trn to build, assuming it actually happens – 25 times the annual government budget. With demand for loans rising faster than deposits, banks are increasingly borrowing from abroad to keep up.
“The KSA complex is structurally increasing its reliance on international debt markets,” said Smallwood. “Banks are taking an ever greater share of Saudi issuance. KSA is therefore increasingly dependent on international investment to fund its domestic priorities.”
Acutely aware of the need to attract more capital, the country has signed multiple deals over recent months with the likes of BlackRock, Franklin Templeton, Goldman Sachs, Macquarie and State Street to unlock inflows. It has also broken into new markets, with bonds in euros, sterling and the green market.
Financial market instruments that are common in other countries but rarely or never seen in Saudi have also been launched. PIF launched a commercial paper program in June, while the Saudi Real Estate Refinance Company in August printed the country’s first ever residential mortgage-backed security.
Slow progress
But progress has not been as fast as hoped. When Vision 2030 was launched, there was talk of 150 state-owned companies being privatized, unlocking US$300bn for Vision 2030-linked investments. Huge excitement followed 2019’s record US$29.4bn IPO of Aramco – but the pipeline quickly dried up.
Years later, IPO activity has picked up but many deals have traded down sharply, indicating ongoing liquidity issues. Tellingly, the market capitalization of exchange operator Tadawul has actually fallen over the last three years, despite the surge in listings.
On the bond side, progress in expanding the market has also been slow – and dominated by government or quasi-government issuers. Last year, PIF and Aramco accounted for about 80% of all non-financial corporate issuance. Barely any private non-financial companies are tapping bond markets.
“An acceleration of cumulative private sector investment will be required by 2030 to sustain growth momentum,” said Aziz Al Sammarai, an analyst at Moody’s, who added that the need to finance projects like World Expo 2030 and FIFA World Cup 2034 should boost issuance.
“Strategic investments across sectors is likely to spur an increase in equity and debt issuance. Increased capital market activity will, over time, deepen Saudi Arabia’s financial markets, broaden investor participation and support the development of a more diversified and resilient funding base.”
Deals with financial institutions to attract further liquidity and deepen the country’s capital markets also continue. Last month, Saudi Arabia was added to a JP Morgan bond index, in a deal that could attract around US$5bn of foreign inflows into its sukuk and bond markets.
PIF announcement
A catalyst for further activity could be just around the corner. PIF, which is driving much of the Vision 2030 agenda, including privatization of government assets and incentivizing private sector investment, is expected to announce a big “update” very soon.
“In the coming two months or so we will set the new strategy for PIF, which is a continuation from the original one … from 2030 all the way to 2040 and beyond,” chairman Yasir Al-Rumayyan told a Washington event last month. The announcement could lead to greater clarity – and more privatizations.
The clock is ticking. Oil revenues have fallen by about a third from their peak, and the US$200bn they contribute to the public purse is not enough to balance the books. The government has run a deficit in 10 of the past 11 years, despite its vast oil wealth, and is on course to run a larger-than-expected deficit this year.
If it is to wean itself off oil and create a more sustainable, diversified economy then broadening access to capital markets will be key.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Gold prices rebounded above $4,000 per ounce as a weaker dollar and expectations of Fed rate cuts lifted demand, offsetting optimism over U.S.-China trade talks. Spot gold rose 0.7% to $4,009, extending this year’s 53% rally after hitting a record $4,381 in October.
2 min
Gold prices regained some lost ground on Tuesday, rising above the $4,000-per-ounce level as a weaker dollar and expectations of further Federal Reserve rate cuts outweighed pressure from signs of a thaw in U.S.-China trade tensions.
Spot gold was up 0.7% at $4,009.39 per ounce, as of 0141 GMT, after dropping more than 3% on Monday to its lowest level since October 10. U.S. gold futures for December delivery rose 0.1% to $4,022.10 per ounce.
“Buyers who were waiting on the sidelines for gold are now being tempted into taking positions at these price levels. Also, we are seeing a bit of softness from the dollar, which is giving gold a reprieve,” said KCM Trade Chief Market Analyst Tim Waterer.
The dollar index was down 0.1% against its rivals, making gold less expensive for other currency holders.
On Sunday, top Chinese and U.S. economic officials hashed out the framework of a trade deal for U.S. President Donald Trump and his Chinese counterpart Xi Jinping to decide on later this week.
Trump said he thought a deal would be reached with China, and announced a flurry of deals on trade and critical minerals in Malaysia with four Southeast Asian nations during the first stop of his five-day Asia trip.
“If Trump and Xi have a productive meeting on trade this week, this could leave gold swimming against the current to some degree. But this could be offset if the Fed delivers a dovish tone with the expected rate cut this week,” Waterer said.
With the Fed widely expected to cut interest rates at the end of its policy meeting on Wednesday, investors are awaiting any forward-looking language from Fed Chair Jerome Powell.
Meanwhile, the European Central Bank and the Bank of Japan are both broadly expected to hold rates steady later this week.
Gold prices have gained about 53% this year, reaching an all-time peak of $4,381.21 on October 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying.
Elsewhere, spot silver fell 0.3% to $46.74 per ounce, platinum slipped 1.2% to $1,571.85 and palladium dipped 0.8% to $1,391.15.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
Gulf Bank won the “Best Next Generation Program” award at the 2025 MEED Banking Excellence Awards in Dubai, recognizing its innovative banking solutions that empower young entrepreneurs and next-generation investors across Kuwait.
2 min
Gulf Bank announced that it has received the “Best Next Generation Program” award as part of the 2025 MEED Banking Excellence Awards for Wealth Management and Private Banking in the Middle East and North Africa, organized by the international publication MEED in Dubai.
This award comes in recognition of Gulf Bank’s efforts to develop innovative banking programs designed for young entrepreneurs and promising business owners, by providing specialized financial and advisory solutions that enable them to grow their businesses and build a sustainable financial future.
Gulf Bank was selected for this prestigious award based on a range of professional criteria, including the design of innovative financing and advisory programs tailored for young and emerging entrepreneurs, the launch of flexible banking products and digital services that elevate the next generation’s customer experience, and the bank’s leadership in digital transformation, exemplified by its advanced mobile application.
The Bank was further recognized for the development of its premium private banking services, offering asset-backed financing, exclusive investment solutions, and elite banking cards designed to meet the needs of high-net-worth clients.
Commenting on this achievement, Abdulrahman Al-Khubaizi, Deputy General Manager of Consumer Banking – Wealth Management at Gulf Bank, stated: “We are honored to receive this prestigious award, which reflects our unwavering commitment to empowering Kuwaiti youth and supporting them in building their businesses and securing their financial future. This recognition not only celebrates our achievements but also reinforces our responsibility to continue innovating and fulfilling the aspirations of the next generation.”
Al-Khubaizi added that Gulf Bank continues to place strategic focus on its private banking services, offering tailored programs and initiatives designed for young high-net-worth individuals and future investors. He emphasized that the Bank remains dedicated to expanding its client base and strengthening customer loyalty, contributing to sustainable growth and long-term value creation in the years ahead.
He further noted that the bank is committed to providing high-quality, bespoke wealth management services, through personalized banking solutions that align with clients’ needs and lifestyles. This approach ensures seamless banking experiences and attracts more affluent clients seeking exclusive and refined banking services.
It is worth noting that Gulf Bank recently received the “Best Customer Experience in Private Banking Services” award at the Private Banker International Global Wealth Awards 2025, one of the world’s leading awards in the wealth management sector.
In 2024, Gulf Bank was also honored with the “Best Next Generation Offering for Emerging High-Net-Worth Clients” award from the same organization, further reaffirming its leadership in addressing the evolving needs of clients, particularly the new generation of investors.
MEED, the organizer of this award, is a renowned media and business intelligence platform established in 1957, dedicated to tracking and analyzing economic and financial developments across the Middle East. The organization hosts the MENA Banking Excellence Awards in collaboration with leading global banking partners, including Private Banker International, to honor financial institutions that exemplify excellence in innovation, customer experience, and digital transformation.
The awards are widely regarded as among the most prestigious recognitions in the regional banking sector, distinguished by transparent evaluation criteria and a rigorous selection process conducted by a specialized judging panel of international banking experts and consultants.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
Nolte Küchen, Germany’s leading premium kitchen brand, is expanding in the UAE under its new entity Nolte UAE, investing AED 25 million to launch a flagship showroom by 2026 and strengthen its direct presence — reaffirming its “Made in Germany” quality, innovation, and sustainability.
3 minNolte Küchen, Germany’s leading premium kitchen brand, is strengthening its presence in the Middle East as part of a renewed global growth strategy rooted in German design excellence and craftsmanship. Having been present in the UAE market since 2007 with Universal Trading Company (UTC), in a mutually agreed step to further ensure market development and expansion. The brand will now transition to a direct-to-consumer model under its new mainland entity, Nolte UAE.
As part of this expansion, Nolte Küchen will invest over AED 25 million in the coming years. This includes the launch of a flagship showroom on Sheikh Zayed Road by early 2026, and the establishment of a dedicated team of engineers, designers, and architects offering end-to-end kitchen solutions defined by German precision and quality standards. The move underscores Nolte Küchen’s confidence in the UAE’s role as a regional hub for design and innovation, as well as a key market in the company’s international expansion. It strengthens its direct relationships with both B2B and B2C customers through greater brand consistency, service excellence, and competitive pricing.
The UAE’s premium kitchen market has nearly doubled since 2020 and is projected to reach US$200 million by 2030, reflecting sustained demand for high-quality European design. The brand’s continued expansion aligns with this growth, positioning Nolte Küchen to meet evolving customer expectations through faster delivery timelines, improved service, and an expanded product range that includes Nolte Küchen, Nolte Neo, Express Kitchen, and Living & Spa. The brand’s mission remains to bring “Made in Germany” quality, design excellence, and innovation to every home, while catering to diverse market segments across both private and professional customers.
Selva Kumar Rajulu, Managing Director of Nolte UAE, said: “Since establishing Nolte FZE in the region in 2011, we have built a strong legacy rooted in innovation and trust. This new phase, as Nolte UAE, enables us to engage more closely with customers and partners, ensuring every project reflects German design excellence. The UAE has always been central to our journey, and this expansion reinforces our commitment to the market and its role in driving our global presence across high-growth international markets.”
In the Middle East, Nolte Küchen’s presence is anchored by its regional competence centre in Dubai, which oversees markets across 30 countries and have managed to deliver more than 80,000 project kitchens and 35,000 retail kitchens in the last years. Supported by over 75 branded showrooms across the Middle East, Asia, and Africa, the Dubai hub delivers landmark developments such as Tilal Al Ghaf and Harmony Villas in Dubai, MERED’s Iconic Residences design by Pininfarina in the UAE, Rafal Residence in Riyadh, and Al Mouj in Muscat, along with large-scale residential and hospitality projects in Qatar, Jordan, and Kuwait. This regional infrastructure enables the brand to serve both developers and homeowners with scale, precision, and local expertise.
Beyond aesthetics, Nolte Küchen has earned the title of Germany’s most popular kitchen brand, recognised for its superior product quality, design innovation, and customer satisfaction by the German Institute for Service Quality over several years. The company offers one of the world’s widest range of finishes, materials, and configurations, with customisation options that set a global benchmark of personalisation in kitchen design. It also holds the distinction of being the world’s most sustainable kitchen brand, maintaining a 100% production base in Germany and the industry’s first independent sustainability report.
The UAE’s Net Zero by 2050 strategy and Estidama Pearl Building Rating System encourage developers and manufacturers to adopt more sustainable construction and design practices. Nolte Küchen is the only German kitchen brand with both FSC and PEFC certifications, reflecting its commitment to long-term environmental responsibility. The brand also releases annual sustainability reports, highlighting its continued investment in responsible production and transparency.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Emirates NBD to acquire a 60% stake in India’s RBL Bank for $3 billion, marking the largest cross-border deal in India’s financial sector and reinforcing the UAE bank’s expansion across high-growth markets.
3 minMiddle Eastern bank Emirates NBD will buy a 60% stake in Indian private lender RBL Bank for $3 billion, in the largest cross-border acquisition in India’s financial sector.
Emirates NBD will invest 268.53 billion Indian rupees ($3.05 billion) in the bank through a preferential issue of shares, RBL Bank said in a statement to exchanges.
The deal is among a series of cross-border deals in India this year, and comes months after Japan’s Sumitomo Mitsui Banking Corporation’s move to buy up to 25% of Yes Bank.
UAE banks have also been considering cross-border expansions in the region and further afield. Both ENBD and Abu Dhabi’s FAB have been expanding their presence in markets like Saudi Arabia and Egypt.
TAPPING INDIA’S FAST-GROWING FINANCIAL SECTOR
“This investment reflects ENBD’s confidence in India’s fast-growing financial sector, reinforcing India’s strategic importance within the India-Middle East-Europe Economic Corridor,” the banks said in a joint statement after the deal was announced.
The lender, which is entirely owned by retail shareholders and investment funds, said the deal is subject to regulatory approvals.
India allows 74% foreign investment in private banks but limits shareholdings of any single foreign institution to 15% unless regulator the Reserve Bank of India grants an exemption. The RBI has informally communicated its backing for the ENBD deal, Reuters has reported.
As part of the deal, Emirates NBD will also launch an open offer for additional shares from retail shareholders in line with India’s takeover regulations. They will be offered at 280 rupees per share, according to an investor presentation by RBL Bank.
As per these rules, an acquisition of more than 25% shares in a company requires the acquirer to offer to buy another 26% from retail shareholders.
Emirates NBD will ensure its shareholding does not go beyond the overall 74% foreign investment limit, the exchange announcements from both banks said.
The Dubai-based lender will be designated the “promoter” of RBL Bank, a regulatory classification in India used for large shareholders with management control. It will also have the right to nominate directors to the RBL Bank board, subject to regulatory approvals.
Anand Dama, head of financial sector research at Mumbai-based brokerage Emkay Global Capital Financial Services, said the acquisition “will open up flood gates for more such investments into small- and mid-sized banks in the country”.
PAN-INDIA PRESENCE
RBL Bank’s former CEO Vishwavir Ahuja resigned abruptly in 2021 after the Indian central bank appointed an additional director to its board – a step typically taken to increase scrutiny on a bank.
Since then, the bank has seen a management change and earnings have stabilized. Its stock has soared 90% so far in 2025 against an 8% gain in India’s benchmark Nifty 50 index.
As of March 2025, RBL Bank had assets of 1.46 trillion Indian rupees ($16.61 billion), making it the 13th largest of 21 private banks in the country.
The lender has 15.17 million customers and a network of 562 branches across 28 Indian states and union territories.
“The infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital,” the banks said in the press release.
Investors will watch to see if a combined Emirates NBD-RBL Bank, with so much capital at its disposal, would look at more acquisitions in banking, Dama said.
Emirates NBD, which is majority-owned by Dubai’s government, had assets worth $297 billion as of end-June. Together with other UAE banks, it has benefited in recent years from rising demand for credit and government-driven investment in non-oil sectors.
It has operations in countries including Egypt, Saudi Arabia and Turkey, where it acquired DenizBank in 2019.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Egypt submits a new state offering program to the IMF, featuring major divestments in renewables, finance, logistics, and airports, as part of its economic reforms — with plans to cut debt to 75% of GDP and attract $2.5B in global investments.
< 1 minEgypt has submitted a new state offering program to the International Monetary Fund (IMF) as part of its ongoing economic reform efforts, Minister of Finance Ahmed Kouchouk told Al Arabiya Business.
Kouchouk said the program focuses on three to four major offerings during the current fiscal year (FY) in the financial, insurance, airports, renewables, and logistics fields.
He added that a major divestment deal will be announced soon, referring to anticipated transactions in the renewable energy, communication data centers, and mobile towers sectors.
Kouchouk noted that a new debt management strategy will be unveiled in December, focusing on extending the average debt maturity.
The minister confirmed that the government debt has been reduced by nearly 10% of gross domestic product (GDP) within two years, reaching 85% now, with a goal to bring it down to 75% within three years.
He also said Egypt is in talks with Kuwait, Qatar, and several European countries to convert part of its debt into investments, though discussions remain in early stages.
Additionally, Kouchouk mentioned that Egypt still has a chance to attract $2.5 billion in international bonds until next June.
He further confirmed that the fifth and sixth IMF program reviews will be integrated into the current economic reform framework.
According to the IMF’s latest World Economic Outlook, the fund raised its forecast for Egypt’s real GDP growth in FY 2025/2026 to 4.5%, up from its July estimate of 4.1%.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
SAS partnered with Dubai Islamic Bank (DIB) to upgrade its AI-powered AML platform on Microsoft Azure, enhancing financial crime detection and compliance. Announced at GITEX 2025, the move supports DIB’s digital transformation and strengthens its regulatory resilience.
2 min
SAS, the market leader in Data and AI, has partnered with DIB, the world’s first Islamic bank and the largest in the UAE, to upgrade its Anti-Money Laundering (AML) platform and advance financial crime compliance capabilities, deployed on SAS hosted cloud services, supported by Microsoft. This strategic collaboration, announced at GITEX 2025, reflects DIB’s commitment to staying ahead of evolving regulatory requirements and leveraging advanced technologies to ensure compliance with the global standards and meet industry-specific compliance requirements.
Recognizing the rapid advancements in regulatory frameworks and the increasing complexity of financial crime, DIB is advancing to SAS Viya 4 – a cloud-native, AI-powered analytics platform running on Microsoft Azure– building on its longstanding relationship with SAS. The upgrade will not only modernize compliance operations but also support the bank’s broader digital transformation agenda.
Abdul Waheed Rathore, Group Chief Compliance Officer at DIB said: “Safeguarding the integrity of our operations and maintaining customer trust are foundational to everything we do. In today’s increasingly complex regulatory environment, our partnership with SAS reflects a strategic move to elevate our compliance capabilities which equips us with greater agility, precision, and insight to proactively combat financial crime, while reinforcing our enterprise-wide commitment to strong governance and risk resilience.”
As part of this transformation, DIB will implement SAS’s Financial Crime Analytics — an advanced suite powered by artificial intelligence (AI) and machine learning (ML) — to strengthen its ability to detect and mitigate financial crimes. The platform will deliver faster, deeper insights, empowering the bank to proactively detect, assess, and mitigate financial crime risks with greater accuracy and efficiency
“SAS is proud to support DIB in advancing its financial crime strategy and digital compliance ambitions,” said Michel Ghorayeb, Managing Director, SAS UAE. “Our advanced analytics, AI, and cloud technologies are designed to empower leading organizations like DIB to remain resilient against emerging financial crime threats while ensuring operational efficiency and regulatory compliance. Deployed in cloud with SAS-hosted managed services, we are offering a combination of technology and expertise to deliver exceptional results and safeguard DIB’s customers.”
Imane El Majdoubi, Enterprise Commercial Director, Microsoft UAE stated: “At Microsoft UAE, we are proud to support DIB’s digital transformation journey by providing secure, scalable, and AI-powered Azure cloud capabilities. By partnering with SAS and DIB, we are enabling advanced analytics and compliance solutions that help DIB proactively detect and mitigate financial crime risks, while ensuring regulatory compliance and operational excellence.”
This upgrade is part of DIB’s continued investment in future-ready compliance infrastructure and innovation-led transformation. It reinforces the bank’s long-term commitment to operational excellence and regulatory resilience, while aligning with the UAE’s national vision to position itself as a global hub for financial innovation, transparency, and governance leadership.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Aramco can sustain 12 million bpd output for a year without extra cost, CEO Amin Nasser said, reaffirming focus on low-cost, low-carbon oil and expansion in chemicals through deals with Petro Rabigh, Rongsheng Petrochemical, and TotalEnergies.
2 min
Saudi Aramco can sustain crude oil production at 12 million barrels per day (bpd) for a year without incurring additional costs, Chief Executive Amin Nasser said on Monday.
Saudi Arabia holds a substantial share of the world’s spare oil capacity – idle supply that can quickly be brought to market.
Speaking at the Energy Intelligence Forum in London, Nasser projected global oil demand would rise by 1.1 million to 1.3 million bpd this year, and by 1.2 million to 1.4 million bpd in 2026.
Nasser said Aramco’s extraction costs stood at $2 per barrel of oil equivalent (boe) for oil and $1 per boe for gas.
“We are determined to remain dominant in oil thanks to a massive resource base, low costs, and one of the lowest upstream carbon intensities across the industry,” Nasser said.
“We also see resilient demand, and the pressing need for long-term investments in supply is now widely accepted.”
ARAMCO SCALES BACK CAPACITY TARGET
The Saudi energy ministry ordered Aramco in January 2024 to u-turn on a maximum sustainable capacity target of 13 million bpd, reinstating the earlier 12 million bpd target that had been in place before March 2020. The International Energy Agency estimated Saudi Arabia’s spare capacity at 2.43 million bpd in August, out of the 4.05 million bpd held by OPEC+. Saudi Arabia produced more than 9.7 million bpd of crude that month.
The International Energy Agency estimated that Saudi Arabia’s spare capacity was 2.43 million bpd in August out of the total 4.05 million bpd spare capacity held by OPEC+. Saudi Arabia produced more than 9.7 million bpd of crude in August.
Aramco, the world’s top oil exporter, still views chemicals as a strategic growth area, even as rivals such as Shell and Exxon Mobil scale back operations.
“Despite the current downturn, chemicals remain a key long-term growth area, with our proven strengths in both feedstocks and conversion,” CEO Amin Nasser said.
The company has been expanding its downstream and petrochemical portfolio to diversify revenue.
On October 9 it gained majority control of Petro Rabigh by acquiring a 22.5% stake from Sumitomo Chemical. In July, it bought a 10% stake in China’s Rongsheng Petrochemical for $3.4 billion, securing access to a 400,000 bpd refinery.
It is also building an $11 billion petrochemical complex with TotalEnergies at their existing Satorp refinery in Saudi Arabia expected to produce 1.65 million metric tons annually of ethylene from 2027.
TotalEnergies said last month it is expanding in Saudi Arabia due to competitive feedstock and energy costs, even as it closes some European operations.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Esterad Investment Company launched Esterad Capital, a DFSA-licensed asset management firm in DIFC, marking a key step in its regional expansion. The new platform will strengthen partnerships, enhance access to global markets, and focus on private equity, real estate, and alternative investments.
1 min
Esterad Investment Company (Esterad) has announced the official launch of Esterad Capital, a newly established Category 3A asset management firm headquartered in the Dubai International Financial Centre (DIFC).
Licensed by the Dubai Financial Services Authority (DFSA), Esterad Capital aligns with Esterad’s growth strategy to expand its regional reach while maintaining strong governance and investment discipline.
Esterad Capital has been established as a regional investment platform, reinforcing Esterad’s commitment to building a stronger footprint in one of the region’s most dynamic financial hubs, said a statement.
The new DIFC office will serve as a gateway for strategic partnerships and will provide enhanced access to international capital markets and investment opportunities.
The launch marks a strategic milestone in Esterad’s regional expansion plans and its ambition to enhance its presence in key financial markets across the GCC, it stated.
“The launch of Esterad Capital marks a pivotal step in our growth journey and reflects our long-term vision to position Esterad as a leading regional investment platform,” remarked Ahmed Abdulrahman, the Chief Executive Officer of Esterad and Chairman of Esterad Capital.
“DIFC provides a world-class regulatory and financial ecosystem, and this strategic expansion will enable us to work closely with a few select families and HNWIs, strengthen our relationships with international partners, and pursue new opportunities in private equity, real estate, and alternative investments in the UAE,” he stated.
Abdulrahman pointed out that by leveraging DIFC’s robust legal and regulatory framework, coupled with its international connectivity, the company aims to enhance deal origination, accelerate capital deployment, and serve the investment requirements for strategic investors who can co-invest with Esterad.
Esterad Capital will focus on the origination, structuring, and management of investment opportunities across multiple asset classes, including private equity, real estate, and other strategic investments, in line with Esterad’s disciplined investment philosophy, he added.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sharjah Government, rated Ba1/BBB–/AAA, appointed banks for a potential Panda bond, its first since the RMB 2 billion 2018 issue.
< 1 min
The Government of Sharjah, through its Finance Department, rated Ba1/BBB–/AAA (Moody’s/S&P/Lianhe), has mandated banks for a potential Panda Bond offering.
Bank of China is the lead underwriter and bookrunner. Credit Agricole (China), JP Morgan Chase (China), Industrial and Commercial Bank of China, China Bohai Bank, Citic Securities, Export-Import Bank of China and Shenwan Hongyuan Securities are joint lead underwriters and bookrunners.
The Government of Sharjah last tapped the Panda bond market in February 2018, issuing RMB 2 billion ($316 million), making it the first Middle Eastern issuer to enter China’s domestic bond market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
CrediMax became the first in Bahrain to launch Visa Commercial Pay, a virtual corporate card platform offering instant issuance, real-time tracking, and enhanced security to simplify business payments and support Bahrain’s digital transformation.
< 1 min
CrediMax, a leading payment solutions provider in Bahrain, said it has become the first in the kingdom to introduce Visa Commercial Pay, virtual corporate card platform, a next-generation digital solution designed to transform how businesses manage expenses, enhance security, and gain full financial visibility.
Visa Commercial Pay is ideal for businesses of all sizes – from startups managing tight budgets to large enterprises controlling hundreds of employee cards, said CrediMax in a statement.
With instant virtual card issuance, real-time tracking, and robust security, it streamlines operations, cuts costs, and drives transparency – making corporate finance simpler, smarter, and strategic.
CrediMax CEO Ahmed A. Seyadi said: “We are redefining corporate payments for the digital era. Businesses today need flexibility, control, and security – all delivered in real time. Visa Commercial Pay provides a smarter way to manage corporate spend, empowering finance teams to operate efficiently while giving employees a seamless payment experience.”
“By being first to launch this solution in Bahrain, CrediMax is helping businesses embrace global Fintech trends and gain a competitive advantage,” he stated.
Ahmed ElKaffass, Visa’s Country Manager for Bahrain, said: “Visa is committed to supporting Bahrain’s digital transformation, and our partnership with CrediMax is a perfect example of that commitment in action.”
“Visa Commercial Pay directly helps local businesses operate more efficiently and securely, which is essential for driving growth across the wider economy. By enabling seamless B2B payments, we are helping to build a stronger, more resilient digital ecosystem for the Kingdom,” he added.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Oman priced its $1 billion seven-year sukuk at 4.525%, narrowing to 60bps over US Treasuries. The Sukuk Al-Ijara, listed on the London Stock Exchange, carries ratings of Baa3 (Moody’s), BBB- (S&P), and BB+ (Fitch).
< 1 min
Oman’s $1 billion USD Reg S seven-year long fixed rate sukuk has been priced at 4.525%, representing a spread of 60 basis points over the US Treasuries.
The initial price thoughts (IPTs) were in the area of +95bps over US Treasuries.
The issuance, structured as Sukuk Al-Ijara, was launched under Rule 144A / 3(c)(7) and Regulation S Category 2 format, and will be listed on the London Stock Exchange’s Main Market.
The obligor, the Government of Oman, is rated Baa3 (Stable) by Moody’s, BBB- (Stable) by S&P, and BB+ (Positive) by Fitch. The expected issue ratings are aligned with the sovereign’s long-term ratings from Moody’s and S&P.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Emirates NBD Securities has expanded its services to offer direct trading access across all GCC markets, becoming the UAE’s only bank-backed broker with full regional coverage. The move supports growing cross-border investment amid strong IPO activity, as Emirates NBD reported a 12% rise in net income to AED 23.9 billion in H1 2025.
< 1 min
Emirates NBD Securities, a subsidiary of Emirates NBD, has expanded its trading services, giving investors direct access to key GCC financial markets.
This expansion provides investors with a single and seamless entry point into some of the region’s most active exchanges, according to a press release.
Operating on the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX), and Saudi Exchange (Tadawul), the unit is extending its platform to Oman, Qatar, Kuwait, and Bahrain.
The move comes as Gulf capital markets are gaining significant traction, driven by strong economic activity.
Economic diversification initiatives, regulatory reforms, and relaxed foreign ownership rules secure new opportunities and attract strong interest from both local and international investors.
The Gulf region’s initial public offerings (IPO) activity has also stayed strong, enhancing liquidity, widening participation, and making cross-border investment easier than ever.
Ahmed Al Qassim, Group Head of Wholesale Banking, Emirates NBD, said: “Being the UAE’s only bank-backed broker to offer full GCC access sets us apart and gives clients confidence that their investments are supported by one of the region’s strongest financial institutions.”
Hessa Al Mulla, General Manager, Emirates NBD Securities, added: “With this expansion, they can reach every major market in the GCC through a single app and a dedicated brokerage team.”
During the first half (H1) of 2025, Emirates NBD posted 12% year-on-year (YoY) higher net income valued at AED 23.90 billion.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
National Bank of Kuwait (NBK) won two awards at the MEIRA Awards in Oman — Leading Corporate for Investor Relations in Kuwait and Best Investor Relations Professional in Kuwait for Amir Hanna. The recognition highlights NBK’s commitment to transparency, strong governance, and world-class investor communication.
2 min
Amir Hanna was named Best Investor Relations Professional in Kuwait.
This recognition underscores NBK’s leadership in advancing professional standards and best practices in the field of investor relations.
The award reaffirms the Bank’s commitment to delivering transparent, timely, and value-driven disclosures to all stakeholders.
National Bank of Kuwait (NBK) was distinguished with two prestigious accolades from the Middle East Investor Relations Association (MEIRA) during its annual awards ceremony in Oman. The event, sponsored by the Muscat Stock Exchange, brought together leaders of GCC stock exchanges, decision-makers from global investment funds, and a wide network of investor relations professionals and experts from around the world.
NBK received the award for Leading Corporate for Investor Relations in Kuwait, while Mr. Amir Hanna, Group Chief Communications Officer at NBK, was named Best Investor Relations Professional in Kuwait.
This recognition underscores NBK’s leadership in adopting world-class standards of transparency and professionalism in investor relations, reinforcing its position as a leading financial institution in the local and regional banking sector, while further strengthening the confidence of the investment community and stakeholders in the Bank as a trusted partner.
The awards recognize companies and individuals who excel in investor communication and uphold the highest standards of corporate governance. Winners are selected through a rigorous evaluation of their investor relations programs, and based on a comprehensive survey of analysts and professional money managers.
Transparency and disclosure are measured by the clarity and comprehensiveness of information shared with investors and the public, adherence to corporate governance best practices, and the quality of annual and quarterly reports and investor presentations. They also encompass the effectiveness of communication channels with investors, ranging from conferences with investors and analysts to the use of digital platforms.
The criteria also cover the responsiveness to investor inquiries, the ease of access to information and the investor relations team, the integration of environmental, social, and governance (ESG) considerations into disclosure and strategy, as well as the adoption of innovative communication methods aimed at enhancing the overall investor experience.
These awards reaffirm NBK’s unwavering commitment to adopting best practices in investor relations and stand as a testament to its leadership in delivering transparent, high-quality disclosures to all stakeholders. The recognition by the investment community highlights the Bank’s ongoing efforts to enhance communication with shareholders and analysts, while reinforcing market confidence and strengthening trust within the investor community.
NBK has consistently upheld the highest standards of governance and transparency, demonstrating clear excellence in investor relations through its ongoing efforts. The Bank maintains an open and continuous dialogue with investors, organizes regular presentations, and is committed to publishing comprehensive financial, annual, and sustainability reports that offer clear insights into its performance and strategic direction.
As a non-profit organization, MEIRA is dedicated to promoting best practices in investor relations while enhancing the reputation, efficiency, and appeal of capital markets across the Middle East.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Arthur D. Little (ADL) urges GCC countries to adopt economic valuation of water as a policy tool to boost resilience and sustainability. Case studies worldwide show how valuing water guides smarter crop choices, conservation, and tariff setting. Saudi Arabia’s national model is a regional benchmark, proving that measuring water’s true value drives efficiency, investment, and long-term access.
2 min
Arthur D. Little (ADL) has released new findings demonstrating that water must be recognized not only as a natural resource but as a key driver of economic activity and national resilience. With the Middle East home to 6% of the global population but holding less than 1% of the world’s renewable water resources, adopting economic valuation methodologies as part of broader
water management strategies to ensure lasting access for generations to come is becoming increasingly important particularly for GCC countries facing decline in non-renewable water resources.
International case studies illustrate the practical impact of using economic valuation of water in making policy decisions. In Jordan, agriculture consumes nearly 60% of water resources, yet a comprehensive water valuation study showed that prioritizing high-value crops such as cucumbers and strawberries over low-value, water-intensive crops like alfalfa could raise the average economic value of water nearly threefold, from JD 0.40 per cubic meter to JD 1.10.
Cyprus provides another example, where the economic value of water of the critical water resource; Akrotiri aquifer, was calculated at CYP 4.07 million annually vastly exceeded the cost of conservation measures required. These findings supported the decision to replenish the aquifer with treated wastewater, validating a significant investment in long-term supply security.
In South Africa, valuation of industrial water use calculated an average value of ZAR 369.10 per cubic meter, far higher than prevailing tariffs. This insight encouraged policymakers to consider tariff adjustments that promote efficiency without undermining industry. In Australia, the impact of groundwater usage on the national economy was quantified at AUD 6.8 billion annually using the economic value of water, underscoring water’s role as an economic enabler of national prosperity.
Of particular relevance to the Gulf is Saudi Arabia’s comprehensive national water valuation model, which incorporates both use and non-use values across all water sources; groundwater, surface water, desalinated water, and treated wastewater. This framework has become a cornerstone for national planning, awareness raising, and conservation decisions, providing a benchmark for the wider region as it balances growth ambitions with resource stewardship.
“Assigning measurable value to water enables leaders to make informed decisions that deliver the greatest benefit to both people and economies,” said Nick Strange, Principal in the Energy, Utilities & Resources practice at Arthur D. Little Middle East. “For the GCC countries, adopting these methodologies can strengthen national resilience, foster innovation in alternative water sources such as; desalination and reuse, and ensure that every cubic meter contributes to sustainable growth.”
The findings emphasize that water valuation is not a theoretical exercise but a practical policy tool. By embedding it into decision-making, GCC countries can align raw water tariffs with true resource costs, improve water efficiency in agriculture and industry, and prioritize conservation and infrastructure projects that deliver the highest long-term returns. Embracing the economic value of water in this way can help guarantee lasting access to the fresh water needed to sustain industries, economies, and entire populations.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.
