TOP STORIES FROM THE GCC

Saudi Arabia’s new regional headquarters mandate goes into effect

Saudi Arabia‘s deadline for foreign firms to establish their regional headquarters in the kingdom or lose out on hundreds of billions of dollars in government contracts went into effect on Monday as did several exceptions to the rule.

The exceptions include contracts below 1 million riyals ($266,681), contracts executed outside of the kingdom, deals with companies that are the sole providers of their service or commodity, and emergencies that can only be addressed by a foreign company without regional headquarters. READ MORE

4 charts show UAE petrol price changes in 2023

The UAE has cut fuel prices across the board for the month of January. In addition, the recent attacks on vessels in the Red Sea has thrown global oil markets into a tailspin, with it being unclear as to whether the situation in those waterways will improve or not.

Earlier this week, global oil prices jumped 2 per cent on concerns over the risks in that part of the world. Inflation, across the globe, is starting to fall, and economists are expecting the US Federal Reserve to cut interest rates next year, which will result in the UAE following suit. READ MORE

Food, beverage is UAE’s second biggest sector after oil – report

Over 2,000 food and beverage manufacturing companies are based in the UAE and they are generating Dhs28bn ($7.63bn) in annual revenue, making up to 25 per cent of the country’s manufacturing GDP.

This is according to the Annual UAE Food Industry Report for 2023, which has been published by the UAE Food Beverage Business Group (FB Group). The report goes on to note that the food and beverage sector is only second to the country’s oil and gas industry in terms of revenues. READ MORE

Saudi wealth fund PIF splashes $31.6bn in 2023

Saudi Arabi’s Public Investment Fund (PIF) accounted for about a quarter of the almost $124bn spent by sovereign wealth funds worldwide last year, a report published on January 1 showed.

PIF’s whopping $31.5bn spend in 2023 compared with $123.8bn for all sovereign wealth funds, based on a preliminary annual report from industry specialist Global SWF, which tracks the world’s sovereign investment funds.

The strong rally last year in global stocks helped to swell the assets managed by the sovereign wealth funds worldwide to a record $11.2tn. READ MORE

How REITs are unlocking the potential of UAE real estate

The year 2023 was marked by uncertainty from geopolitical tensions, recession concerns, high inflation and subsequent interest rates, and financial market volatility.

Conversely, the gloomy global picture is somewhat offset by stronger performance in the UAE, with economic growth projected to be 3.4 per cent in 2023 and 4 per cent in 2024, according to the International Monetary Fund.

Growth is supported by the non-oil sector as the UAE government is accelerating plans to diversify the economy and sources of income and boost foreign direct investment. Real estate projects and associated sectors such as hotels and industrial, logistics and manufacturing are playing a central role in this diversification drive. READ MORE

UAE’s new end-of-service benefits scheme for employees: Why should you switch?

If you live and work in the UAE, you should know that the newly unveiled voluntary Alternative End-of-Service Benefits Savings Scheme, is now in effect. The initiative, which came into force on November 1, is not compulsory for employees or employers, and it does not have a minimum salary requirement to participate.

However, the UAE government through the Ministry of Human Resources and Emiratisation (MoHRE) and the Securities and Commodities Authority (SCA), has encouraged employees to opt for it, owing to a range of benefits. Gulf Business spoke to Satish Rajan, group CMO, Innovations Group to understand the benefits of the new programme and the pros and cons for those enrolling in it. READ MORE

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