Business

  UAE Poised for Strong Economic Growth in 2025, Says IMF — Abu Dhabi to Lead with 4.2%, Dubai to Follow with 3.3% Abu Dhabi/Dubai, May 2025 – The International Monetary Fund (IMF) has released a bullish economic forecast for the United Arab Emirates, signaling continued resilience and expansion in the nation’s two largest emirates. According to the IMF’s latest projections, Abu Dhabi’s economy is expected to grow by 4.2% in 2025 , with a notable uptick to 5.8% in 2026 , positioning the capital as a regional growth leader. Meanwhile, Dubai’s economy is set to grow by 3.3% in 2025 , rising to 3.5% the following year , reflecting steady momentum in non-oil sectors. The forecasts come at a time of considerable global uncertainty, where economic risks in the form of rising geopolitical tensions , supply chain disruptions , and volatile oil prices have forced the IMF to revise down its growth outlook for the broader Middle East and North Africa (MENA) region. The region’s overall g...

Dubai’s Free Zones Set for Major Boost as Companies Seek Neutral Base Amid U.S. Tariff Surge Dubai, April 26, 2025 — Dubai’s strategically positioned free zones are emerging as major beneficiaries of the shifting tides in global trade, as businesses worldwide respond to renewed U.S. tariff policies. With Washington reinstating higher tariffs on imports from China, Vietnam, South Korea, and other major manufacturing hubs, a growing number of companies are turning their focus to Dubai and the wider UAE as neutral, business-friendly destinations for restructuring their supply chains. Industry experts highlight that Dubai’s extensive logistics infrastructure, political neutrality, and progressive regulatory framework offer companies a unique environment to safeguard against the uncertainties of ongoing trade tensions. Many firms are exploring ways to use Dubai’s free zones to relocate final assembly operations or light manufacturing activities. By doing so, they aim to change the countr...

  ADNOC Drilling Secures $1.63 Billion Offshore Contract to Boost Energy Services Abu Dhabi – April 17, 2025 — ADNOC Drilling has secured a major $1.63 billion contract from ADNOC Offshore for integrated drilling services (IDS), marking a significant step in strengthening the UAE’s offshore energy operations. The five-year agreement will support the delivery of complex, extended-reach, and maximum-reservoir contact wells. As part of the contract, ADNOC Drilling will provide a full suite of IDS services including directional drilling, drilling fluids, cementing, wireline logging, and tubular running. Tayba Al Hashemi, CEO of ADNOC Offshore, emphasized the importance of the deal: “This contract provides us with continued access to ADNOC Drilling’s high-performing capabilities and market-leading services. It will enable us to deliver wells more efficiently while creating long-term value for ADNOC and the UAE.” Abdulrahman Abdulla Al Seiari, CEO of ADNOC Drilling, expressed confi...

  In 2025, European startups are experiencing remarkable growth, fueled by increased investments and strategic initiatives aimed at fostering innovation across various sectors. European Innovation Council's €1.4 Billion Investment: The European Innovation Council (EIC) has allocated €1.4 billion for 2025 to support deep-tech research and high-potential startups, marking an increase of nearly €200 million compared to 2024. This funding aims to bolster advancements in sectors such as artificial intelligence (AI) and climate resilience. A significant addition to the 2025 work programme is the EIC Strategic Technologies for Europe Platform (STEP) scale-up scheme, designed to enhance access to scale-up equity funding for startups developing strategic technologies.  Notable Funding Rounds: Cera Care: In early 2025, Cera Care, a UK-based home healthcare provider, raised $150 million in funding. The investment aims to expand its AI-driven home healthcare services, enhancing patient...

  Government Initiatives for Diversification  :  Many Middle Eastern governments are actively pursuing economic diversification in 2025, aiming to lessen their reliance on oil. Saudi Arabia's Vision 2030 continues to drive growth in non-oil sectors like tourism and technology, with the non-oil economy projected to expand significantly. The UAE is also advancing its diversification agenda, focusing on knowledge-based industries and attracting foreign investment, building upon the foundations of its Vision 2021. These initiatives involve substantial investments in new sectors, regulatory reforms, and efforts to enhance the private sector's role, all geared towards creating more sustainable and resilient economies in the region.

Aramco Slashes $40 Billion in Dividends Amid Saudi Fiscal Pressures Saudi Aramco, the world’s most valuable oil company, has announced a major cut in its dividend payouts for 2025, signaling mounting financial pressure on the Kingdom as it presses ahead with its costly economic transformation plans. The oil giant plans to distribute $85.4 billion in total dividends this year, a significant drop from the $124.2 billion paid in 2024 — a reduction of nearly $40 billion. The move has sparked concerns about Saudi Arabia’s ability to finance its ambitious Vision 2030 agenda, which relies heavily on Aramco's profits to bankroll infrastructure and diversification projects. Performance-Linked Payouts Plunge 98% The sharpest decline came in the form of performance-linked dividends, which are set to fall from $43.1 billion in 2024 to just $900 million in 2025 — a staggering 98% decrease. The dividend cuts reflect a broader decline in Aramco’s financial performance. Net income dropped by 12%, ...