Main Topic: Dealmaking in the Middle East region
Key Points:
1. Illuminati Capital raised $50 million for its blockchain and Web3-based gaming fund.
2. Saudi Arabia's early-stage VC fund secured a $1.5 million commitment from Jordan's Innovative.
3. Dealmaking in the Middle East region has seen an uptick.
The wealth per adult in the UAE at the end of 2022 was $152,556, according to a global report, with the UAE hosting a large number of wealthy expatriate entrepreneurs.
Saudi Arabia was the top global export destination for Dubai Chamber of Commerce members in the first half of 2023, with exports valued at $9.53 billion, according to official data. Qatar also saw significant year-over-year growth of 39.3 percent in the same period. Southern Africa and Central Asia were highlighted as the fastest-growing regions for exports by members.
Lebanon's luxury tourist industry continues to thrive amid a devastating financial crisis, with visitors flocking to the country despite its deep economic woes and high inflation.
Saudi Arabia's robust diversification efforts, driven by Vision 2030 strategies, have resulted in a surge of business activities and economic growth, despite worldwide economic uncertainty and concerns over inflation and geopolitical tensions. The country's economic diversification journey has led to the opening of new sectors and advancements in fields such as tourism, media, finance, and clean energy, making it a regional economic and technology hub. Saudi Arabia's continued focus on sectors like mining, metals, hospitality, tourism, and clean energy, along with fiscal consolidation efforts and revenue-enhancing measures, are key to sustaining its economic diversification model.
Main Topic: Saudi Arabia's robust economic diversification efforts driven by Vision 2030 strategies.
Key Points:
1. Saudi Arabia's economic diversification efforts have led to a surge in business activities despite global economic uncertainty.
2. The country has made significant improvements in its Economic Diversification Index scores and has opened new sectors in tourism, media, hospitality, finance, and the digital sphere.
3. Investment in digital transformation and the clean energy sector are expected to contribute to sustained economic growth and make Saudi Arabia a regional economic and technology hub.
Saudi Arabia's Vision 2030 plan aims to transform the economy, improve citizens' lives, and maintain global prominence through ambitious projects like Neom's $1 trillion megacity known as The Line, but the success of the plan is uncertain and could pose challenges in terms of social tensions and regional competition.
Saudi Arabia's tourism revenue tripled in the first quarter of 2023 as the country attracted more visitors and sought to diversify its economy from oil, with a surplus of 22.8 billion Saudi riyals ($9.86 billion) in the balance of payments for the tourism sector and a record number of tourists.
Saudi Arabia is undergoing a major transformation through its Vision 2030 plan, led by Crown Prince Mohammed Bin Salman, aiming to diversify its economy and secure its place on the global stage; despite controversies and challenges, the country's economy is booming, heavily reliant on oil, and is making significant investments at home and abroad.
The United Arab Emirates saw a 31.8% increase in revenue in 2022, supporting an overall fiscal surplus, as the country focuses on developing its non-oil sectors such as trade, tourism, manufacturing, logistics, and financial services.
Saudi Arabia's Vision 2030 is driving the transformation of Riyadh into a global destination through the implementation of eight mega-projects, including Sports Boulevard, New Murabba, Qiddiya, and King Salman Park, which aim to create sustainable and innovative urban spaces, promote sports and recreational activities, enhance cultural and heritage sites, and provide entertainment and leisure options for residents and visitors.
The Middle East hotels' food and beverage segment contributes significantly to revenue, with about 40% of hotel revenue in the region being generated from beverage sales, according to industry experts at the Future Hospitality Summit in Abu Dhabi. However, there has been a decline in food and beverage profitability due to increased competition from dining options outside of hotels and challenges in hiring high-quality staff.
Hotels in the Middle East are experiencing high occupancy rates due to increasing demand, with Riyadh, Dubai, and Abu Dhabi leading the way, and Saudi Arabia ranking third globally for upcoming hotel projects.
The Middle East's tourism sector remains resilient despite challenges such as rising construction costs, funding delays, and higher interest rates for development projects, with Saudi Arabia and the UAE showing determination to achieve their tourism targets through collaboration between the public and private sectors and international consultants being appointed for various projects across multiple markets.
