Exciting Times Ahead for The Arabian Gulf

As the world continues to emerge from ‘lockdown’ and companies attempt to adapt to the ‘New Normal’, the British entrepreneurial spirit and ‘business-as-usual’ mentality is slowly but surely starting to re-emerge.

It is reassuring to see that many of the major projects that were put on hold across the Arabian Gulf, due to COVID-19, are now resuming and, new projects are being given the green light on a weekly, if not daily, basis. 

For example, Dubai’s DP World and Caisse de dép?t et placement du Québec (CDPQ), a global institutional investor, recently announced the expansion of their ports and terminals investment through a new commitment of $4.5 billion.

The appetite for new technology continues throughout the region, with a British entrepreneur planning to bring robotics to the Gulf’s oil refineries, which will save companies billions of dollars in routine maintenance, using a combination of drones, laser scanners, DSL cameras and mobile phone data.

Elsewhere, Saudi Arabia has granted licences to over 506 foreign companies in the first half of 2020 alone. The number of investor licence approvals started to pick up in June, accounting for nearly half of all licences issued in the second quarter. The resilience demonstrated by the Saudi economy is undoubtedly very encouraging.

The Qatar Financial Centre (QFC) has already registered over 1,000 companies on its platform, reflecting the trust that companies and investors continue to have in Qatar as prime business destination. Despite challenges posed by COVID-19 pandemic, the QFC is on way to achieve this year’s target of registering 250 companies in 2020.  

Construction continues to be a major feature of business development throughout the region with over US$65.1 billion worth of projects completed across the Arabian Gulf in H1 of 2020.

Other new projects that have landed on our desk this week include:

·     The expansion of Metro stations in Dubai, extending platforms, infrastructural works, civil works, construction of a new pedestrian bridges and associated facilities.

·     Design of a Mega Power Plant in Kuwait, which will be completed in two phases with each having capacity of 3000 MW.

·     Wastewater Treatment Plant in Kuwait with a project duration of 42 months, including a 24 month operation and maintenance period.

·     A UAE-based retailer is to develop a US$ 80 million shopping mall in the port city of Yanbu, Saudi Arabia.

These are just a few recent examples of how the region is progressing as we start to exit lockdown and business begins to move forward.

With plenty of opportunities for British exporters to be a part of this continued development, companies involved in everything from construction, energy, transport through to  retail, fashion, food and drink should look seriously at these lucrative markets.

Whilst many companies are understandably focused on their domestic markets, with the UK finalising its exit from Europe at the end of this year, the smart move is to strike while the iron is hot and turn attentions to prospects in the vibrant and dynamic Arabian Gulf.