Details

-Dynamism produces diversified investment opportunities under all circumstances

-GCC economies are making a quantum leap in terms of global investments, development and growth plans

-Saudi Arabia to generate over $100 billion through Aramco IPO

– UAE seeks to increase non-oil sector’s GDP contributions to 25% by 2021

Recent data and indicators reveal that there are many investment opportunities that have been seized across all Gulf countries since they have embraced a comprehensive development drive. These investments have achieved multiple successes and were conducive to overcoming many of the challenges faced in the region, providing a financial-cum commercial momentum as a result of which an unlimited number of real estate and non-real estate projects as well as long-term growth and development plans and strategies have been launched.

Al Mazaya Holding in its weekly real estate report highlighted investment data purporting that the infrastructure sector was given high priority by investors while the real estate platform was prioritised by the governments and the private sector. The banking sector provided diversified services and posted impressive growth rates.

In the meantime, the health sector drew significant investments both to meet domestic demand and to develop medical tourism. The industrial sector has been prioritised by the governments as part of their diversification plans, while the energy sector has maintained its strategic investment importance, being the main source of cash flows in most of the regional countries.

Al Mazaya report added that the challenges and crises experienced by the countries of the region at present time are likely to create direct and indirect investment opportunities as more projects are being launched while the region’s governments are initiating a large number of mega projects which should have positive impacts on all sectors. The governments of the region have approved long-term development plans up to the year 2030 and medium-term plans up to 2020, to secure economic integration and attract foreign investment inflows over the coming period, besides laying focus on generating sustainable cash flows.

The weekly report said that the current incentive strategies for the economic sector will stimulate the pace of investment. In addition, they will identify more investment opportunities that suit all categories of current and potential investors across all economic and service sectors. In the meantime, the ongoing mega-projects are likely to invigorate the investment movement at supporting sectors, which play a major role in providing momentum to financial and economic activities and in achieving medium and long-term goals.

The report sheds light on the Saudi economy, which, it said, enjoys myriad financial and economic incentives at present, and boasts untapped investment opportunities, in line with the Saudi Vision 2030, including its privatisation plans that are expected to generate more than $100 billion through a 5 per cent IPO of the giant oil company Aramco, which will have a significant impact on government spending and sources of funding. The decision to open the Saudi capital market for foreigners is anticipated as well to ratchet up investments to around $20 billion.

Al Mazaya report pointed out that Saudi Vision aims to promote the saving concept among Saudi citizens, which will generate a lot of funds, contributing to the development of small and medium enterprises, and increasing the liquidity needed for seizing investment opportunities. In addition, many local and foreign banks are now seeking to expand their activities in the Saudi market, while several international banks are set to have a foothold in Saudi Arabia to get a share of available investment opportunities, including transactions to be conducted by the government.

The report also sheds light on the UAE economy, which has survived many of the crises and complexities it encountered over the past years and managed to generate viable investment opportunities. The report attributed this to the fact that the UAE economy is based on innovation to ensure its superiority and enhance its ability to deal with emerging challenges.

Al Mazaya pointed out that the UAE economy is currently undergoing a massive development process which will result in more investment opportunities that will include major development projects across several sectors, including energy, finance, business, small and medium-sized enterprises, education and training, infrastructure, health and industry, with the UAE government seeking to increase the industrial sector’s contribution to GDP to 25 per cent by 2021.

On the other hand, the Bahraini economy has been able to make tangible achievements in terms of overall development. Infrastructure projects have received increasing attention as the main driver of other economic sectors, especially the tourism and hotel platforms. The industrial sector witnessed more stimulus plans. Statistics by the Bahraini Industry, Trade and Tourism indicate that 170 licences were given to industrial projects in 2016 with a total value of $3.7 billion. In the meantime, it transpires that the value of direct support provided by the GCC countries to infrastructure and housing sector development projects reach around $10 billion.

The report stressed that the significant partnerships signed and those expected to be signed in the near future with global economic blocs, especially with the Eurozone countries and the British, American, Chinese and Turkish economies, will boost competitiveness and provide a good ground for private businesses to consider investment opportunities created by interested economies.

Concluding, the report expects the economies of the region to enter into new partnerships and agreements with active economies around the world over the coming period, in the implementation of the development and growth plans which are currently underway and which are expected to create good investment opportunities.