Smashi Business Newsletter - August 13, 2024
Marhaba folks! ??
In today's edition, we cover:
Yalla, let’s dive in ????♀?
Dubai Aims to Attract More Investment from China
What is it about:
Dubai is intensifying efforts to attract Chinese investment in various sectors such as green technology, electric vehicles, e-commerce, artificial intelligence, healthcare, and renewable energy. This push is part of broader initiatives by Dubai and the UAE to strengthen economic ties with China, leveraging historical relations and existing trade connections. Last year, non-oil bilateral trade between Dubai and China reached $67.8 billion, showing a 4% increase from the previous year.
Why does it matter:
This initiative is crucial for Dubai as it seeks to diversify its economy beyond oil, positioning itself as a leading global hub in several high-growth sectors. The UAE's significant trade relationship with China, which includes a 16% annual increase in Chinese investments and Dubai's status as the top destination for greenfield foreign direct investment projects in 2023, highlights the strategic importance of this partnership. The D33 Agenda aims to double Dubai’s economy and attract substantial foreign direct investment, enhancing both the emirate’s global status and economic resilience.
What is next:
Dubai Chambers plans to further bolster these investments by hosting a business forum in Beijing, aiming to connect Dubai-based companies with Chinese firms and explore new opportunities in key sectors. The forum will feature over 50 Dubai-based companies and 350 Chinese companies, focusing on high-potential areas such as green tech, e-commerce, AI, healthcare, and renewable energy. This effort aligns with Dubai’s broader economic goals under the D33 Agenda and its commitment to enhancing collaboration with Chinese technology firms.
Abu Dhabi Rental Market Surges with 102% Increase in Contracts Amidst Supply Shortages
What is it about:
Abu Dhabi’s residential rental market is experiencing a significant surge in demand, with the number of rental contracts more than doubling in the first half of 2024 compared to the previous year. The emirate saw 49,135 new rental agreements, marking a 102% increase. Despite the rising demand, rental prices in Abu Dhabi remain more affordable than in Dubai.
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Why does it matter:
The sharp rise in rental contracts highlights the city's growing appeal among expatriates and professionals due to its strong economy and high quality of life. However, the increased demand is straining the available supply, particularly in prime areas, driving up rental prices and making it challenging for house-hunters to find suitable accommodation. This trend reflects the broader economic and investment climate in Abu Dhabi, where strong market growth is seen as a positive sign of stability and attractiveness.
What is next:
With more than 10 residential projects expected to be completed by early 2025, the supply issues may alleviate slightly. In the interim, prospective renters should be prepared for higher competition and prices. Investors and developers may continue to focus on Abu Dhabi's rental market, given its growing demand and relatively lower costs compared to Dubai.
Thndr Aims to Revolutionize Investment Accessibility for MENA Youth with Mobile-First Platform
What is it about:
Thndr, a digital investment platform founded in Egypt in 2019, seeks to democratize investing for the Middle East and North Africa (MENA) region. Inspired by Robinhood’s zero-commission trading model, Thndr offers a user-friendly mobile platform that eliminates traditional barriers to investing, such as high entry requirements and complex account processes. It also focuses on enhancing financial literacy through educational content and tools.
Why does it matter:
Investment participation in the MENA region is notably low compared to other regions, with only about 5% of the population involved in the stock market. Thndr addresses this gap by simplifying access to investment products and providing resources to educate new investors. This approach not only broadens market participation but also aims to foster financial inclusion and literacy among young and first-time investors.
What is next:
Thndr plans to expand its services beyond Egypt, targeting the UAE and Saudi Arabia. The platform will continue to focus on financial education and adapt to local market needs. With recent licensing in Abu Dhabi and future plans to launch in Saudi Arabia, Thndr aims to establish itself as a leading investment tool in the region, catering to the needs of a mobile-first, financially diverse audience.
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