As per the GASTAT, the net inflows of FDI also fell by 51.9% compared with Q4 2025, when the figures reached SR48 billion.

However, there was a positive growth in total foreign direct investment (FDI) inflows into the Saudi economy during the first quarter of 2026, which rose to SR26.6 billion, marking a 2.4% increase from SR26 billion recorded in Q1 2025.

However, total inflows declined by 49.9% compared with the fourth quarter of 2025, when they stood at SR53.1 billion.

“Conversely, outward foreign direct investment (FDI) flows increased significantly by 50.6% during the first quarter of 2026, reaching SR 3.5 billion, compared with approximately SR 2.3 billion in the first quarter of 2025,” GASTAT stated further.

The mixed FDI data won’t augur well for the Kingdom’s broader efforts under the “Vision 2030” agenda, under which the country is trying to attract long-term foreign capital as it diversifies its economy beyond oil revenues. Under the program, the country is targeting USD 100 billion in annual foreign direct investment by 2030.

The GASTAT bulletin defines FDI as one that “reflects a long-term relationship and ongoing interest in economic entities residing in an economy other than the Saudi economy.”

“This means that the foreign investor, individually or as a group of foreign investors, owns 10% or more of the voting power of shareholders’ equity, thus enabling them to exercise a degree of control or influence over the decision-making process to serve their interests,” the definition reads further.

The kingdom has continued to strengthen its investment environment through regulatory reforms, opening sectors including tourism, renewable energy, technology, and logistics to greater foreign participation.

Under Vision 2030, Riyadh aims to increase FDI’s contribution to GDP from 3.8% to 5.7% while positioning the nation as a global investment hub.

The administration has also introduced a new “Investment Law” to strengthen investor protections, apart from simplifying licensing procedures and ensuring equal treatment for local and foreign investors, thereby reinforcing efforts to attract international capital across strategic sectors.

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As NCC’s CFO, he has consistently demonstrated exceptional leadership in domains like financial transformation, strategic execution, and governance excellence, delivering sustainable impact across the organisation. He is a key figure in transforming how finance operates, spearheading comprehensive initiatives that improved efficiency, transparency, and the quality of decision-making within NCC’s operational ecosystem.

Mohammed Bayahya, through his visionary leadership, has transformed finance into a forward-looking partner to the business, supporting both operational excellence and strategic ambitions.

A strong advocate of innovation, he led large-scale finance and ERP transformation initiatives, significantly improving NCC’s financial agility and data reliability. In addition to strengthening the Kingdom-based detergent manufacturer’s core ERP environment, Bayahya successfully implemented Oracle Enterprise Performance Management (EPM) and Oracle Fusion Data Intelligence (FDI) as part of the company’s finance and performance management transformation.

“The Oracle EPM implementation has enabled structured planning, budgeting, forecasting, and financial consolidation across the organisation. It has improved governance through standardised assumptions, controlled workflows, version control, and audit trails, while enhancing management’s ability to run scenario analysis and stress testing – particularly important in an IPO readiness context. At the same time, the Oracle FDI implementation has established a centralised, automated data and analytics layer by integrating data directly from Oracle Fusion ERP and other sources. This has eliminated manual data manipulation, improved data accuracy and timeliness, and enabled real-time dashboards and KPIs for finance, sales, supply chain, and working capital monitoring,” he told the International Finance.

Together, these systems are providing an end-to-end performance management and reporting ecosystem for NCC, improving financial visibility and transparency, decision-making speed and quality, internal controls, data integrity and management and board-level reporting readiness.

“This technology foundation significantly strengthens our IPO readiness, apart from supporting financial due diligence, and aligns our reporting and analytics capabilities with listed-company standards,” Bayahya noted.

As part of leading his company’s IPO readiness journey, Bayahya, using technology’s helping hand, aligned NCC’s financial reporting, governance, internal controls, and performance management with listed-company standards. He acted as the primary finance counterpart to banks, external consultants, auditors, and legal advisors, ensuring readiness for due diligence, valuation, and investor scrutiny.

Apart from partnering with the CEO and executive leadership to translate the company’s growth strategy into a credible, investor-ready financial and operating plan, Mohammed Bayahya took things further by ensuring NCC’s strategic initiatives were supported by robust financial modelling, capital allocation discipline, and KPI frameworks aligned with IPO and long-term shareholder value creation.

Through disciplined financial stewardship and strategic insight, he delivered measurable business impact by driving sustainable profitability, cost optimisation, and informed executive decision-making. His proactive leadership ensured the detergent manufacturer registered a 21.5% revenue uptick, in addition to ensuring +13.8% EBITDA margin improvement, through cost discipline and margin-focused decision making. There was also a gross margin uplift of more than 3%, driven by pricing discipline and mix optimisation. Net profit growth, on the other hand, went up by more than 18%. CAGR was at 6%, outpacing the industry average of 3.5%.

Cash conversion cycle got reduced by 48 days compared to the prior year. Bayahya’s visionary leadership has also resulted in NCC currently maintaining fiscal stability with a 10% reduction in operating costs. Perhaps, the biggest shift has been the company shifting its reliance on internally generated cash rather than loans by improving working capital, which reduced interest cost by 52%.

Widely recognised for his people-centric leadership, the ability to build high-performing finance teams and acting as a trusted advisor to executive leadership and boards, Bayahya’s tech-driven and strategic guidance brought NCC’s biggest turning point during the 2023/24 financial year, as the company increased its net income by 96%, creating opportunities for reinvestments in the company’s innovation and expansion-related efforts.

Under his leadership, metrics like lower debt to equity, healthy ROIC (Return on Invested Capital), consistent healthy current ratios (underscoring NCC’s solid short-term solvency), outstanding inventory operations and enhanced procurements and relationship with suppliers all point to one thing: Mohammed Bayahya’s outstanding leadership, transformational impact, and strategic financial excellence have turned NCC into a profit machine.

The post Mohammed Bayahya: Transformative leader consolidating NCC’s finance appeared first on International Finance.

While the latest figures show an uptick from the tally of RO 29.02 billion, recorded during the same period in 2024, annual inflows declined to RO 2.36 billion from RO 3.56 billion a year earlier. This indicates a slowdown in new capital entry despite the expansion in total investment stock.

Breaking down the numbers from Oman’s National Centre for Statistics and Information, the oil and gas continued to dominate, accounting for 80.9% of total FDI inflow (translated to RO 25.41 billion, with inflows of RO 2.53 billion). The manufacturing sector came second with investments of RO 2.67 billion, although it registered a decline in inflows of RO 127 million.

“The financial intermediation sector followed with total investments of RO 1.50 billion, recording a drop in inflows of RO 69.1 million. Other sectors posted mixed performance, reflecting varied investment dynamics across the economy. Investments in real estate, rental and business activities reached RO 584.3 million, with a decline in inflows of RO 14.4 million, while the transport, storage and communications sector attracted RO 312.5 million, supported by modest inflows of RO 2.5 million,” reported Oman Daily Observer.

Among other sectors, the electricity and water sector recorded investments of RO 318.7 million, with inflows increasing by RO 25.8 million. The trade segment saw investments of RO 281 million, with inflows rising by RO 4 million, signalling steady activity in domestic commerce.

Hospitality, especially hotels and restaurants, saw investment inflows worth RO 112.8 million, with a marginal decline in inflows of RO 700,000. The construction sector registered RO 99.1 million, and “other activities” collectively attracted RO 85.7 million, with inflows rising by RO 2 million.

The United Kingdom remained the largest investor in the Sultanate, accounting for 52.3% of total FDI, valued at RO 16.42 billion. The United States and Kuwait took second and third positions, with amounts of RO 8.45 billion and RO 1.36 billion, respectively.

China (RO 887.3 million), Qatar (RO 763 million), UAE (RO 626.2 million), Bahrain (RO 528.5 million), Netherlands (RO 525.1 million), Switzerland (RO 329.7 million) and India (RO 275.2 million) all continued to pump capital into Oman.

“The data reflects Oman’s continued ability to attract long-term foreign capital, supported by sectoral diversification and an evolving investment environment, even as inflow levels fluctuate in response to global economic conditions,” Oman Daily Observer concluded.

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Free zones have emerged as a central pillar of Egypt’s investment ecosystem, offering a flexible and business-friendly environment that supports seamless industrial and commercial activities. Through a range of tax incentives and streamlined procedures, these facilities play a leading role in attracting both local and foreign investments, helping to enhance the national economy’s competitiveness and reinforce Egypt’s position as a regional hub for industry, logistics and international trade.

According to the latest government data, Egypt currently has 231 public and private free zones that are either operational or under development. In fact, international bodies like the Organisation for Economic Co-operation and Development (OECD) have also highlighted the importance of these zones.

As per OECD, these free zones have emerged as a key driver of foreign direct investment (FDI) inflows by offering competitive incentives and state-of-the-art infrastructure.

On the other hand, the United Nations Conference on Trade and Development (UNCTAD) reported in January 2026 that Egypt ranked first in Africa for FDI inflows for the fourth consecutive year, supported by investment facilitation measures like electronic company registration services provided by the General Authority for Investment and Free Zones (GAFI).

Free zone projects enjoy benefits like robust legal protections, including safeguards against expropriation or administrative seizure except through judicial procedures, along with extensive exemptions from customs duties and taxes on capital goods, production inputs, exports and imports, as well as value-added tax (VAT) exemptions on domestic inputs and transit goods.

Fitch Ratings also highlighted the advantages, such as tax and customs exemptions, unrestricted import and export activity, and simplified administrative procedures, that are making these strategically located facilities lucrative destinations for investors.

In 2025, 152 new projects emerged, bringing the total number to 1,243, up from 2014’s tally of 1,091. Invested capital, on the other hand, rose by 30.3% to USD 14.2 billion, including USD 2.8 billion in FDIs, compared with USD 10.9 billion in 2014.

“Total investment costs increased by 66.5% to USD 38.3 billion, while exports more than doubled to USD 9.3 billion, accounting for nearly 20% of Egypt’s total exports. Free zone projects now employ more than 248,000 workers nationwide,” Daily News Egypt reported.

Discussing ongoing major projects within these zones, Leoni Egypt produces around 45,000 automotive cables daily across three zones, in addition to operating 15 factories and employing close to 6,000 engineers, technicians and workers. Gid Textile, on the other hand, runs five factories with investments exceeding USD 250 million and 300 production lines. Yazaki Egypt, a private free zone project, has invested around 30 million euro.

Egypt’s roadmap for the 2026/27 financial year, will further implement targeted tax and customs facilitations (including expanding the tax base by increasing tax compliance without imposing additional or significant burdens), which is estimated to further help the free zones. Apart from targeting a growth rate of 5.4%, the country will allocate EGP 90 billion for various economic activity support programmes.

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The performance underscores Egypt’s relative resilience at a time when FDI inflow into Africa has normalised following an unusually strong 2024, which UNCTAD said was inflated by a single large project. As a result, the 2025 data reflects a return to more typical investment levels across the continent.

“Among African economies, inflows to Angola reached an estimated USD 3 billion, marking a return to positive values after nine consecutive years of net divestments. Egypt, with inflows of USD 11 billion, remained the largest FDI host country in Africa,” the report stated.

While Egypt solidified its position as Africa’s leading FDI host, other notable performers on the continent included Mozambique, where inflows surged 80% to USD 6 billion, driven by renewed activity in major liquified natural gas projects. Angola too saw a positive shift, recording an estimated USD 3 billion in FDI after nine consecutive years of net divestments.

As per UNCTAD, Egypt’s strength extended beyond headline inflows, with the country also contributing to an increase in greenfield investment activity across Africa. While the number of greenfield projects fell globally and across lower-income economies, Africa recorded a 5% increase in project numbers in 2025, supported in part by growth in Egypt and Côte d’Ivoire.

“Globally, FDI flows rose by 14% in 2025 to approximately USD 1.6 trillion, though growth was heavily concentrated in developed economies, which saw a 43% increase. In contrast, flows to developing economies declined by 2%, with the least developed countries particularly affected; three-quarters experienced stagnant or falling investment,” reported the Arab News.

The report highlighted that new project announcements remained weak globally amid elevated policy uncertainty, with international project finance declining for the fourth consecutive year.

Looking ahead, UNCTAD sees geopolitical tensions, regional conflicts and economic fragmentation continuing to suppress real investment activity in 2026, even as financing conditions are expected to ease. For Africa, sustaining steady FDI inflows will require navigating persistent challenges such as financing constraints, risk perceptions, and structural vulnerabilities.

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Breaking down Sharjah’s economic momentum through the numbers, capital investment surged to $1.5 billion during the first six months of 2025, a 361% jump from $325 million during the same period in 2024. The Emirate welcomed 74 new projects, up 57% from 47 in Q1 2024. Some 2,578 new jobs were created (a 45% increase), mostly in fields like production and services.

Sharjah’s path forward is unmistakably clear—centred on accelerating infrastructure development, fuelling innovation, and driving GDP growth. The rise in employment improves purchasing power and drives further investment, especially in the small and medium-sized enterprise (SME) sector.

What is fuelling the growth?

Saud Salim Al Mazrouei, Director of HFZA (Hamriyah Free Zone) and SAIF (Sharjah Airport International Free Zone Authority), during an interview with Gulf News, saw the arrival of record FDI as a confirmation of Sharjah’s standing as a global investment hub. For him, “Free Zones” have become the primary growth engines for the Emirati city, providing businesses with top-tier support in their pursuit of expanding regionally and internationally.

Take Sharjah’s free zones, for example, which marked major achievements and milestones in 2024, reinforcing their pivotal role in establishing the city as one of the most attractive investment destinations. HFZA and SAIF attracted over 1,600 companies from various countries, including the United States, Africa, India, Japan, the United Kingdom, Spain, Belgium, and others.

HFZA attracted 900 companies and corporations across diverse sectors, with the iron and steel manufacturing industry in the Middle East and Africa being the main player. In fact, if we call Hamriyah Sharjah’s “Steel Hub,” it won’t be wrong, given the strong presence of global powers like Belleli Energy, ArcelorMittal, Lamprell, Eversendai, Technomak, Ungersteel, and Zink Power in HFZA. The authority also clinched prestigious international awards at the 2024 iteration of the Global Free Zones of the Year Award by fDi Intelligence, for the second consecutive time.

SAIF, on its part, attracted over 700 businesses from diverse sectors while consolidating its position as a regional investment destination for the gold, jewellery, and gemstone industries. Its Gold, Diamond, and Commodities Park has established itself as one of the Gulf region’s largest gold refinery hubs, accommodating over 55 gold refineries and hosting over 250 companies specialising in gold, platinum, silver, and titanium manufacturing and trade.

Also, these two free zones have adopted cutting-edge digital technologies to create flexible and inclusive work environments. The duo now has a comprehensive portfolio of 600 smart services that seek to optimise operational efficiency, streamline business activities, and deliver an investor experience that relies on efficiency, speed, and excellence. HFZA and SAIF have further developed innovative strategies to build an integrated system of eco-friendly services.

This included signing a strategic partnership agreement with “Bee’ah Group” and organising initiatives, including events and workshops, to encourage businesses and investors to embrace effective environmental solutions that focus on energy efficiency, natural resource preservation, and emission minimisation.

Why are free zones so special?

Apart from offering industrial and commercial land supported by advanced infrastructure and modern facilities that support the international expansion plans of its investors, these hubs also boast competitive advantages, including a streamlined single-window operations system for enhanced efficiency and ease of doing business, multiple tax exemptions, free repatriation of capital and profits, full foreign ownership of businesses, and seamless connectivity to regional and global markets.

As the Gulf region eyes itself to become the new global tech hub, the Sharjah administration in 2024 announced the formation of a Communication Technologies Free Zone in Kalba city. To attract players from sectors like telecom, deep tech, and data centres, the Emiri decree stated that companies, institutions, individuals, and employees in the free zone will be exempt from taxes imposed on their business activities for a renewable period of 50 years. Also, the free zone will be exempt from all local taxes and fees, except consumption duties.

Al Mazrouei sees Sharjah’s free zones strengthening their developmental role and furthering their contributions to the Emirate’s economy in 2025 and beyond. On a broader scale, the city’s economy is driven by the diversity and complementarity of its sectors and their alignment with the Emirate’s strategic ambitions and development plans.

This growth is evident in Sharjah’s 2025 general budget, where the economic development sector accounts for 27% of the new budget, while the infrastructure sector ranks first, comprising 41% of the total general budget for 2025. The figure rose to AED42 billion ($11.4 billion), the largest in the northern emirate’s history. In addition to boosting financial sustainability, upholding a decent living standard, and promoting social welfare, the budget also focuses on strengthening the Sharjah administration’s capacity to fund strategic initiatives and projects, ensuring appropriate housing for citizens, and enhancing the tourism infrastructure.

For 2025, the infrastructure sector took the lead, accounting for 41% of the total general budget, marking a 7% increase compared to the 2024 budget. Simultaneously, the policy document envisioned infrastructural upliftment as a key pillar for sustainable development, to attract investments across various vital sectors.

Sharjah: The diversified hub

While capital investment surged to a record $1.5 billion in the first half of 2025, it was matched by a rise in new project activity, with 74 new projects launched in H1 2025, a 57% increase from 47 projects during the same period in 2024. This will only benefit Sharjah’s production and service-based sectors, which are aligned with the Emirate’s vision for a high-value, knowledge-based economy.

During the first half of 2024, 2,578 new jobs were created, representing a 45% increase from the 1,779 jobs generated in the same period last year. This growth boosted the region’s purchasing power, enhanced local consumption, and created momentum for additional investments, especially among SMEs.

As per the new data, specific sectors are emerging as front-runners in Sharjah’s transformation journey. Among them is the consumer segment, where a 53% increase was seen in project count, backed by another 188% rise in capital investment, making it one of the key contributors to Sharjah’s diversified economic portfolio. With a 112% jump in new projects and a 25% increase in employment, Sharjah is also consolidating its role as a regional food security hub.

Another key performer in Sharjah’s growth journey has been business services, which experienced a staggering 500% rise in capital investment and an 1100% increase in job creation, helping the Emirati city to emerge as a modern, service-oriented economy. The industrial equipment segment experienced a remarkable 100% increase in project count and a 45% rise in capital expenditure. This particular landmark sent a strong signal of Sharjah’s growing manufacturing base.

During an interaction with Gulf News, Hamad Ali Abdalla Al Mahmoud, Chairman of the Sharjah Economic Development Department (SEDD), stated that the FDI surge reflected the strength of Sharjah’s economic fundamentals and its ability to pursue excellence and leadership across business sectors.

“This momentum directly supports Sharjah’s vision for smart and sustainable economic development,” he said, noting that the department will continue to scale its initiatives in line with the Emirate’s growth strategy.

Chairman of the Sharjah Chamber of Commerce and Industry (SCCI), Abdallah Sultan Al Owais, saw the strong FDI results as an indicator that highlights Sharjah as a safe and attractive destination for investors, under the able leadership of His Highness Sheikh Dr. Sultan bin Mohammed Al Qasimi.

Ahmed Obaid Al Qaseer, CEO of the Sharjah Investment and Development Authority (Shurooq), termed the latest growth figures as a guarantee of massive job creation, stronger industries, and sustainable value for the Emirate’s communities.

Sharjah Economic Development Department Chairman Hamad Ali Abdalla Al Mahmoud noted that rising FDI demonstrated the Emirate’s ability to achieve sustainable growth while maintaining high standards.

Ahmed bin Rakkad Al Ameri, CEO of the Sharjah Book Authority, highlighted the role of culture and knowledge in driving economic growth, pointing to “Sharjah Publishing City Free Zone” as a hub for creative industries. Dr. Abdelaziz Saeed Almheiri, Chairman of Sharjah Healthcare City Authority, noted that the Emirate’s appeal in healthcare investment, including pharmaceuticals and AI integration, further reinforces Sharjah as a high-quality investment destination.

Why Sharjah’s growth journey is special?

The UAE Central Bank projects national GDP growth of 4.9% in 2025 and 5.3% in 2026. In comparison, Sharjah is expected to outperform with a robust 7.5% growth in the current financial year.

Executive Chairman of the Department of Government Relations, Sheikh Fahim bin Sultan bin Khalid Al-Qasimi, during the Sharjah Ramadan Majlis 2025 (held in March this year), highlighted that the expected expansion will be driven by progressive policies, increased economic integration, and rising foreign investment in strategic industries.

The 361% jump in FDI inflow proves the official projections correct. In fact, Al-Qasimi sees Sharjah’s private sector further strengthening the Emirati city’s core industries, such as manufacturing, trade, agriculture, and environmental sustainability.

As per Al-Qasimi, Sharjah’s economy is evolving at an impressive pace, with the GDP now over 145 billion dirhams ($39.47 billion), and a growth of 6.5% registered in 2023, surpassing the global average by 3.5 percentage points. He also talked about the role of continued integration, smarter policymaking, and collaboration with the private sector in keeping the growth pace ranging between 6.5% and 7.5% in the coming years.

While the automotive industry and vehicle parts trading accounted for 24% of the city’s economy, followed by agriculture (19%) and manufacturing (17%), Al-Qasimi also pointed to the potential growth in the real estate sector in 2025, citing major developers like Alef Group and Arada, which are making significant investments in the Emirati city.

Tech-oriented innovative policymaking

By offering flexible investment opportunities and advanced infrastructure (including six specialised free zones), Sharjah has emerged as a key destination for manufacturing, services, and finance, with 96% of its economy non-oil-based, perfectly aligning with the UAE’s broader diversification agenda.

The Sharjah administration has also introduced an “instant license” service, which enables investors and entrepreneurs to issue a commercial license immediately without attaching a written contract or lease agreement for the first year.

Issued by the Sharjah Economic Development Department, the service will cover all office activities that do not require approvals from other authorities, with the license allowing up to three employees. The instant license, issued within a day, will enable investors to conduct their business immediately, speeding up procedures and increasing economic growth rates in the Emirate.

Eliminating the procedure that applies to regular licenses, the new service is now helping investors set up their businesses in the first year and then fulfil the special licensing conditions in the second year. However, Sharjah’s tryst with innovative policies is not new. In 2024, Sharjah launched the world’s first AI-powered trade license in collaboration with Microsoft and the Sharjah Publishing City Free Zone. This initiative, launched during the Sharjah Investment Forum (SIF) 2024, aimed to align with economies driven by autonomous systems and digital data. Additionally, this process helps entrepreneurs and investors finalise the licensing procedure in under five minutes.

The new service, which started through the Sharjah Investor Services Centre (Saeed) and SPC Free Zone, will be extended to other free zones across Sharjah. This innovation firmly established “Invest in Sharjah” as the world’s first investment promotion agency to use AI technology for issuing trade licenses, underscoring its dedication to enhancing collaboration and investment between regional and global markets.

This new AI-powered licensing system will expedite the launch of new enterprises and strengthen Sharjah’s status as a prime destination for FDI and innovation in the coming years. It will further boost the flexibility and efficiency of the business environment across sectors. The policy reform came just at the right time, as Sharjah, which till 2024 ranked fifth globally in FDI project growth and fourth in the Gulf region for startup ecosystems, will be able to position itself as a leader in integrating technology into core sectors like agriculture, healthcare, and logistics, while reducing bureaucratic red tape further. It will help diversify the regional economy and cultivate a business environment that supports sustainable growth, aligning with the administration’s long-term development objectives.

With tech-assisted policy reforms, Sharjah is on its way to becoming a “Smart Economy” in its truest sense, where cutting-edge solutions like AI are being used to improve operational efficiencies and promote a culture of innovation that contributes to GDP growth and attracts global investments. Sharjah is now well-placed to become a key hub for sustainable, future-focused business practices.

In May 2025, the Sharjah FDI Office launched “Sharjah AcquireHub,” the region’s pioneering government-backed digital platform designed to streamline mergers and acquisitions (M&A) within the Emirati city. Developed through a strategic partnership with Transworld Business Advisors, a global leader in business advisory services, this platform will accelerate economic growth, strengthen market resilience, and attract high-calibre investments to Sharjah by providing a transparent and secure environment for M&A transactions.

Sharjah AcquireHub will cater to stakeholders, including international investors, SMEs, entrepreneurs, and local businesses, by connecting capital with high-potential opportunities in the Emirate. It will enhance market liquidity and offer flexible solutions for growth, strategic exits, or corporate restructuring. Sharjah AcquireHub’s comprehensive process features seamless online registration, tailored advisory support, and post-transaction assistance. This secure, structured ecosystem will empower investors, buyers, and financiers with the clarity and protections essential for confidently pursuing acquisitions or strategic partnerships, while also providing a trusted platform for entrepreneurs seeking to exit, enabling them to list their companies for potential acquisition.

“Sharjah AcquireHub serves as a strategic gateway for investors looking to access high-potential opportunities in the emirate, particularly within the dynamic and lucrative mid-market segment. It provides advanced tools and clear pathways to engage with the global M&A landscape, which reached a value of $3.5 trillion in 2024, representing a 15% increase over the previous year,” stated global management consulting firm Bain & Company, reacting to the news.

Sharjah AcquireHub also presents a strategic opportunity for SMEs and entrepreneurs to integrate into a broader growth environment through partnerships and alliances that promote development, secure exits, or repositioning.

The SME sector, which comprises over 94% of businesses in the UAE, is expected to stabilise through the platform. Sharjah has experienced significant growth in business establishment and sustainability, with 71,320 new and renewed licenses issued in 2024, reflecting a 7% increase.

Building Sharjah’s global competitiveness

Sharjah’s long-term goal is to facilitate an integrated investment environment supported by a futuristic economic vision. Anchored by a knowledge-based, diversified economy and consistent support for key sectors such as industry, technology, and healthcare, and upheld by its strategic geographic position, Sharjah is uniquely positioned to serve as a regional hub for high-impact M&A activity.

Understanding this, the Sharjah Chamber of Commerce and Industry (SCCI) has laid down a three-year strategic roadmap to drive transformative improvements in performance, operations, and service excellence. The strategy focuses on supporting business sustainability and growth, anticipating future business trends, shaping the business landscape, and enhancing its competitiveness and leadership during the 2025-2027 timeframe.

Apart from strengthening Sharjah’s economic landscape, the roadmap will promote entrepreneurial excellence and support businesses across key fields, including commercial, industrial, professional, agricultural, and digital sectors.

The Sharjah Chamber’s new strategy emphasises delivering world-class services to enhance competitiveness, enabling local enterprises to expand internationally and unlocking new global trade opportunities, while focusing on enhancing economic and social sustainability, facilitating investment-driven economic projects that reinforce the city’s economic framework, and supporting initiatives to ensure a viable and sustainable economy.

On the other hand, the Sharjah Investment and Development Authority (Shurooq) has announced that its 15-year journey of sustainable development culminated in the completion of 52 projects and cultural tourism experiences spanning over 60 million square feet across Sharjah, with a total investment value of AED7.2 billion through strategic partnerships.

These initiatives encompass three real estate projects with a total investment of AED5 billion, 10 distinctive hospitality projects valued at AED850 million, 18 projects in the retail and entertainment sectors with investments exceeding AED870 million, and five projects in the arts and culture sectors worth AED447 million.

All these developments reflect that Sharjah has truly emerged as the UAE’s new growth engine, with unstoppable momentum.

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Ghana’s growing reputation as a West African investment powerhouse, combined with its track record of political stability and business-friendly regulations, helps draw in foreign capital. The industries that demand attention include financial services, tourism, infrastructure, mining, oil and gas, agriculture and agro-processing, particularly cocoa, and information and communications technology.

China, the United States, Germany, Japan, Italy, and Ireland are among the larger economies with businesses operating in Ghana. Procter & Gamble, Volkswagen, Toyota, and Sinotruk are among the more well-known brands. International telecom providers include Vodafone, AirtelTigo, Huawei Technologies, and MTN of South Africa.

Incoming mining operators include Newmont Ghana Gold Ltd, Gold Fields Ghana Ltd, and Anglogold Ashanti Ghana Ltd., while foreign companies seeking to increase production are also entering Ghana’s relatively new oil industry. These companies include Tullow Oil, Kosmos Energy, and Italy’s ENI.

Despite growing interest, Ghana’s annual FDI has fluctuated due to macroeconomic uncertainty, culminating in a debt crisis in 2022.

According to Macrotrends, an investor research platform, FDI inflows into Ghana increased by 35% to $2.5 billion in 2021. However, inflows fell to $1.3 billion in 2023, a 7.6% decrease from 2022.

Stabilisation successful

When Ghana and the International Monetary Fund finalised a loan support agreement in May 2023, it might have marked the start of a new era. The stabilisation was further reinforced by the presidential election in December 2024.

In a December 2024 report, the IMF stated, “The capital and financial account is expected to gradually improve over the coming five years, with FDI projected to increase to 3% of GDP by 2028 following the completion of the debt restructuring and gradual reform implementation.”

Recently, fund representatives visited Accra to evaluate Ghana’s economic performance and structural changes under the stabilisation plan.

In his March 2025 budget speech, Minister of Finance Cassiel Ato Forson said, “The commitment to continue implementing the ongoing IMF-supported programme and reforms to forge macroeconomic stability and debt sustainability will restore investor confidence, resulting in further improvement in FDI flows.”

According to Ghana’s Exemption Act of 2022, manufacturing, minerals and mineral processing, mining by Ghanaian indigenous people, oil and gas (value addition), real estate (property development and road infrastructure), pharmaceuticals, agro-processing, and tourism are among the priority investment sectors that will benefit from investor tax incentives.

Politically speaking, Marcel Okeke, a former Senior Economist at Zenith Bank, Nigeria’s top lender, argues that Ghana’s peaceful election in December means that democracy has come to stay.”

John Dramani Mahama, a former president, was chosen by Ghanaians to succeed President Nana Akufo-Addo. There was no demand for court intervention during the changes in government and political party, which suggests that a time of stability may be on the horizon.

There have been some benefits from the financing arrangement with the IMF. A bigger trade surplus and more IMF borrowing were the main drivers of Ghana’s modest gains in external reserves, which grew to $8.8 billion in 2024 from about $6 billion the year before.

Notwithstanding these encouraging indications, difficulties still exist. Although the increase in reserves is a good thing, Ghana still owes $28.3 billion in external debt, which includes a portion of eurobonds whose payments have had to be postponed. In 2027, more than half of the $8.7 billion in foreign debt service is due.

“We will fix it,” Forson said, adding that “these humps are cancerous and pose a significant risk to the economy.”

With only $8.8 billion in total reserves, Ghana’s central bank might run out of money in roughly three and a half months because it owes the IMF about $2.5 billion, or nearly 30% of its reserves.

Emeka Ucheaga, head of Research and Business Intelligence at Credit Direct, a financial company based in Lagos, said, “The reserves are too low to offer tangible protection to investors in the event of external shocks.”

Ucheaga cautions that despite the economy’s improved GDP growth in the second and third quarters of last year, macroeconomic fundamentals are still precarious. Rising inflation is eroding investor profits and purchasing power. According to official data, the rate barely decreased to 23.1% in February 2025 from 23.8% in December 2024. After a brief upswing toward the close of 2024, the Ghanaian cedi has since reverted, falling 5.3% in the first quarter.

Cautious optimism post-crisis

Foreign investors and analysts have reacted to Ghana’s post-crisis landscape with a mix of caution and guarded optimism. In mid-2023, as Ghana grappled with debt restructuring, Fitch Solutions warned that uncertainty and a sharply devalued cedi would “keep foreign investors cautious,” noting that sentiment remained weak and FDI inflows were unlikely to return to pre-pandemic levels immediately.

Memories of the 2022 default still loom large, and investors have been awaiting clear signs of stabilisation.

Emeka Ucheaga, head of research at a Lagos-based finance firm, argues that Ghana must “demonstrate a sustained commitment to economic stability,” from taming inflation to building reserves from non-debt sources, before confidence truly returns.

That said, there are growing rays of optimism. The International Monetary Fund’s support programme, secured in 2023, and the successful presidential election in 2024 have improved the outlook.

“Over the coming five years, the capital and financial account is expected to gradually improve,” the IMF observed in late 2024, projecting FDI to rise to 3% of GDP by 2028 once debt restructuring and reforms are complete.

Ghana’s officials echo this optimism: “Commitment to…reforms to forge macroeconomic stability and debt sustainability will restore investor confidence, resulting in further improvement in FDI flows,” Finance Minister Cassiel Ato Forson affirmed in the 2025 budget speech.

Some regional analysts are bullish on Ghana’s prospects given its stability. Marcel Okeke, a former chief economist at Zenith Bank, points out that, unlike some neighbours plagued by insecurity, “We do not hear about [terrorism] in Ghana… Investors look for a place to put their money and go to sleep. That is why investors will want to put their money into Ghana.”

In short, while scepticism remains until reforms bear fruit, many see Ghana turning the corner, provided it stays the course on prudent policies.

Stacking up against regional peers

Ghana’s bid to attract FDI cannot be viewed in isolation. It competes with regional peers like Kenya, Cote d’Ivoire, and Nigeria, which each offer a different mix of opportunities and risks.

In 2023, Ghana drew about $1.35 billion in FDI inflows, a respectable sum, but slightly behind Cote d’Ivoire (around $1.75 billion) and Kenya (about $1.5 billion).

Notably, Ghana far outpaced Nigeria, which saw FDI plummet to just $377 million amid its own economic challenges. These numbers tell a story. While Ghana remains one of West Africa’s top FDI destinations, accounting for roughly 20% of the region’s FDI stock, it has lost some momentum to rivals.

Cote d’Ivoire has emerged as a standout, steadily growing its FDI even through global turbulence. The Ivorian economy, buoyed by annual growth above 5%, attracted more investment in 2022 and 2023 than it did pre-pandemic. Abidjan’s government has implemented pro-business reforms, such as digitising administrative procedures and a major development plan. These changes, combined with political stability, make it a favourable destination for foreign investors.

The result is diversified inflows spanning industry (over 50% of FDI), services, and agriculture, with investors from Europe, Asia, and the region. Even neighbouring Burkina Faso was a top source.

Kenya, for its part, leverages its status as East Africa’s commercial hub. Nairobi hosts numerous regional headquarters for multinationals and has nurtured a dynamic tech sector. These factors helped Kenya remain among Africa’s largest FDI recipients.

Even though FDI to Kenya dipped 5.8% in 2023, totalling $1.5 billion, the country’s appeal lies in its relatively diversified economy and investor-friendly climate. Over nearly two decades, Kenya climbed global rankings for ease of doing business thanks to regulatory improvements. These changes have made it attractive for manufacturing and service offshoring projects.

Nigeria presents a more cautionary tale. Africa’s biggest economy has an unquestionable market size and oil wealth, yet chronic issues have driven foreign investors away.

In 2023, Nigeria’s FDI inflow was not only a fraction of Ghana’s, but it fell by 19% to $377 million, an extraordinarily low figure relative to Nigeria’s GDP.

Capital flight from Nigeria stemmed from political uncertainty, high operating costs, and an unfavourable business climate that saw major multinationals in oil and telecoms curtailing or divesting investments. However, late-2023 policy shifts under a new administration, including removing fuel subsidies and liberalising the exchange rate, have started to restore some confidence. This was evidenced by a modest uptick in capital inflows in Q4 2023. If Nigeria follows through on reforms, such as tackling forex shortages and security issues, it could regain ground. For now, Ghana holds an edge in stability and predictability.

The comparison reveals Ghana’s relative strengths and areas for improvement. Unlike Nigeria, Ghana has maintained peace and a smoother regulatory environment, and unlike smaller peers, it boasts a sizeable consumer base and abundant natural resources.

Yet, Kenya and Cote d’Ivoire have been more aggressive in reforms and infrastructure investment, which enhances their FDI appeal. Ghana still ranks behind Kenya on some competitiveness measures and has recently been leapfrogged by the Ivory Coast in annual FDI.

Ghana’s FDI numbers

Digging into the data reveals where Ghana’s FDI is coming from, and where it is not. According to the Ghana Investment Promotion Centre (GIPC), FDI project commitments in 2023 totalled $649.6 million, spread across 122 projects.

The figure based on GIPC-registered projects was barely half of the previous year’s, mirroring the sharp drop in actual inflows recorded in the balance of payments.

The investments Ghana did secure in 2023 were concentrated in a few key sectors. Manufacturing led the pack, accounting for about $280 million, which was the single largest FDI value by sector. Close behind were services, which drew roughly $226 million, reflecting investor interest in Ghana’s financial services, telecom, and hospitality segments.

Retail and trading activities also saw some investment ($75 million), while sectors like agriculture and construction made up smaller portions of the pie. This sectoral breakdown aligns with Ghana’s traditional strengths: processing of resources (cocoa, gold, etc.), consumer goods manufacturing, and a growing services economy. Oil and mining, often major FDI magnets, were not explicitly broken out in the GIPC figures, likely because much of the recent activity there involves reinvestment by established players rather than new inflows.

Another way to analyse the FDI is by source and structure. Ghana has long welcomed investors from around the globe. By 2023, the stock of FDI in the country had swelled to $47.3 billion, with multinationals from South Africa, the United Kingdom, and the Netherlands, France, Mauritius, and China among the top contributors over time.

Recent project data, however, show a shifting mix of countries driving new investments. In 2023, China was the standout, responsible for the largest portion of new FDI, about $212 million across 31 projects. This likely reflects Chinese firms increasing their footprint in Ghana’s resource and industrial sectors.

Surprisingly, Turkey contributed a substantial $173 million through only four projects, suggesting that a few large Turkish ventures, possibly in construction or manufacturing, made a significant impact. Other notable sources included India ($78 million), traditional partners like the United States ($26 million) and the Netherlands ($22 million).

The dominance of China, which provided one-third of 2023’s FDI value, underscores Ghana’s pivot toward Asian capital. Meanwhile, relatively smaller contributions from Western investors indicate that there is room to rebuild confidence among US and European firms in the post-crisis period.

In terms of investment type, Ghana’s FDI inflows are primarily equity-based. This includes mainly greenfield projects and business expansions, rather than debt-financed deals. For instance, in 2022, Ghana recorded 39 new greenfield projects valued at approximately $1.33 billion, which aligns with the total FDI inflow for that year. This indicates that foreign companies are focused on establishing or expanding their businesses locally, rather than acquiring stakes in or lending to local firms.

By contrast, portfolio investment and loans experienced major volatility during the debt saga. The joint venture model is also significant. In 2023, around 32 out of 122 FDI projects were joint ventures between foreign and local partners, with the remainder wholly foreign-owned. These joint ventures not only bring in capital but also involve Ghanaian stakeholders, which can promote local employment and facilitate knowledge transfer.

Overall, the data depict an FDI profile in transition. While overall volumes have declined, the manufacturing and service sectors have remained resilient. Meanwhile, newer investors like China and Turkey play a more prominent role. Encouragingly, early 2024 showed signs of a rebound. Ghana’s central bank reported net FDI of $1.74 billion for the year, up 32.7% from 2023.

In late 2023, the macroeconomic stability improved, and investor funds began returning. However, reaching the pre-crisis high of over $2.5 billion in 2021 will require sustained investor confidence, underpinned by structural reforms and perhaps a few landmark investments.

The government’s targeted sectors for incentives, including manufacturing, mining value-addition, agriculture and agribusiness, infrastructure, and tourism, highlight where it hopes the next wave of FDI will land. The challenge will ensure that future FDI flows align with these priorities and that policy consistency sustains momentum.

A positive view

Ucheaga said, “When combined, these indicators show a country still in the early stages of stabilisation rather than in a phase of renewed investor confidence. This ongoing uncertainty is reflected in the fluctuations in FDI inflows.”

He argues that investor sentiment continues to be influenced by memories of Ghana’s December 2022 debt default, as well as a broader global economic environment marked by rising protectionism and the looming threat of a global trade war, even in the face of improved trade data and IMF backing.

Ucheaga emphasises that Ghana must show a consistent commitment to economic stability to reverse this trend. That involves steadily increasing foreign reserves through reliable, non-debt-driven sources, maintaining a trade surplus, and continually expanding the real economy.

He also stresses that to preserve the value of investments, inflation must be under control and the exchange rate must be stabilised. The government has outlined targets for economic growth, including a non-oil GDP expansion of 4.8%, an overall real GDP growth of at least 4%, and an inflation rate aimed at reaching 11.9% by the end of the year.

The post Ghana’s economic stabilisation: A new dawn? appeared first on International Finance.

According to the Ministry of Finance, in the first four months of 2025, total FDI reached USD 13.82 billion (up 39.9% year-on-year), with disbursed capital hitting a five-year high of USD 6.74 billion. By June, the total registered capital reached nearly USD 18.4 billion, up by 51.1% year on year (YoY).

The Southeast Asian country’s ability to maintain positive FDI momentum, amid trade policy volatility ensued by United States President Donald Trump’s tariff posture, underscores the nation’s macroeconomic resilience.

As per the Foreign Investment Agency under the Ministry of Planning and Investment, newly registered capital, adjustments to existing projects, and capital contributions or share purchases by foreign investors are driving the FDI upsurge. The country is well on its way to becoming a strategic hub for global supply chain diversification.

So, what is driving long-term investor confidence in Vietnam? The country’s political stability, cost advantages, and rapid integration into major trade agreements (CPTPP, EVFTA, RCEP) have positioned it as a key link in global supply chain realignment. Transparent and adaptable foreign direct investment policy frameworks have further consolidated the country’s position at the top. With policies aligned to high international standards, Vietnam offers more than tax incentives. Vietnam’s state-backed support mechanism also spans infrastructure, talent, and sector-specific priorities to ensure long-term investor success.

Against this backdrop, local banks like Asia Commercial Bank (ACB) are helping investors navigate regulations, manage capital efficiently, and turn market entry into long-term operational success. It has developed a specialised ecosystem to serve the evolving needs of international investors. ACB’s eight strategic strengths make it one of the most responsive partners for FDI clients.

ACB has one of the highest credit ratings in Vietnam and is a leading private bank in the retail sector. The bank also has the second-largest distribution network, with over 400 locations across major industrial zones.

The Vietnamese bank offers stable pricing models, which are also tailored to businesses of all shapes and sizes. The bank also provides multi-currency accounts, trade finance, FX (Foreign Exchange) and interest rate hedging (up to five years), guarantees, and ERP (Enterprise Resource Planning) integration.

ACB also provides digital-first capabilities, including open API and SWIFT integration for real-time transactions, and has partnered with over 20 industrial parks across Vietnam, supported by multilingual advisory teams that guide clients from pre-investment planning to the end of operations.

“To navigate today’s complex market landscape, we have launched our ‘Compass in Uncertainty’ programme, offering multilingual financial updates (Vietnamese, English, Chinese) and customised hedging solutions for businesses with foreign currency exposure. Initiatives such as FX incentives (up to 150 points) and flat-rate international transfers (USD 9.9/transaction) further reinforce ACB’s value proposition to FDI clients,” ACB told International Finance.

At ACB’s 2025 Annual General Meeting, CEO Tu Tien Phat noted that large enterprises and FDI firms now account for roughly 50% of Vietnam’s total credit exposure. Thanks to strategic foresight and effective execution, ACB’s FDI lending portfolio grew 2.5 times year-on-year in 2024, highlighting the significant opportunities ahead.

As Vietnam continues its ascent as a regional manufacturing and logistics powerhouse, the convergence of favourable policy, structural reform, and strong financial infrastructure will be critical. For global investors, institutions like Asia Commercial Bank are not merely facilitators but essential partners for sustainable growth in an increasingly complex world.

The post ACB: Guiding investors in Vietnam’s growing FDI market appeared first on International Finance.

Turkey has set its sights on regional trade blocs like the Association of Southeast Asian Nations (ASEAN) and the Asia Cooperation Dialogue (ACD), aiming to expand trade agreements backed by stronger diplomatic alliances. In 2015, it signed a free trade pact with Malaysia and hopes to achieve a similar deal with Indonesia in the coming days. President Edogan’s ambitious goals include transforming Turkey from a “regional economic centre into a global economic powerhouse” and elevating it from the world’s 16th largest economy into the top ten.

Turkey expands Asian footprint

Beyond Southeast Asia, Turkey wants to attract investment from Asia-Pacific businesses seeking a foothold in Europe and the Middle East. With its strategic location, strong manufacturing sector, and skilled workforce, the country offers a compelling destination for investors.

At the same time, Turkish companies are expanding their presence in Asia. Defence, aviation, and technology firms are forming partnerships in Malaysia and Indonesia, while the textile and construction industries see growing opportunities across the region.

However, challenges remain. Logistical bottlenecks, geopolitical uncertainties, and stiff competition from India and Gulf nations mean Turkey must carve out a distinct advantage in Asia-Pacific trade.

Senior journalist Tulay Kalyon Haznedaroglu said, “To stay ahead, it must enhance its infrastructure, refine trade diplomacy, and tap into emerging sectors like technology and green energy. Expanding shipping routes, increasing air travel agreements, and strengthening digital trade platforms will be key to accelerating its trade ambitions. With new free trade agreements on the horizon and strategic partnerships taking shape, Turkey is positioning itself as a vital bridge between Asia and Europe. Erdogan’s proactive diplomacy lays the groundwork for long-term economic growth, reinforcing Turkey’s status as a rising global trade powerhouse.”

“In the short term, the bi-continental country’s much-vaunted Twelfth Development Plan (2024-2028) aims to improve its international stature, promote prosperity, and combat inflation while maintaining strong and sustainable public finances. That goal will depend partly on the success of an associated Foreign Direct Investment Strategy aimed at significantly boosting FDI. The target is for Turkey to account for 1.5% of global FDI and 12% of regional FDI by 2028,” Haznedaroglu added.

On the domestic front, Turkey’s central bank has cut its policy rate by 250 basis points to 42.5%, marking the third monetary easing in a row after months of holding rates steady, as inflation continues to fall.

Experts now predict that inflation will continue to decrease throughout 2025, although it will still exceed year-end targets. In January, the central bank raised its year-end inflation forecast for 2025 to 24%, up 3 percentage points from the previous projection.

According to the latest official data, Turkey’s annual inflation fell to 39.05% in February, down from 42.1% in January, reaching its lowest level in almost two years and raising expectations for further rate cuts.

However, prices in essential sectors such as food, housing, and transportation have continued to rise. A recent poll by Ankara-based Asal Research revealed that 61.2% of respondents cited the “Economy/High Cost of Living” as their primary concern. Istanbul-based economist Atilla Yesilada also suggested that one more rate cut is likely in April 2025 before policymakers pause to assess the situation.

Growth prospects remain mixed

Not particularly, at least when considering FDI as a key measure. While full-year figures for 2024 have yet to be released, they will likely come close to the previous year’s $10.6 billion—down from $13.7 billion in 2022, far below the 2007 peak of $22 billion and short of the $14 billion hoped for earlier. That amounts to less than 1% of GDP, compared with 3% in 2007 and well under both potential and policymakers’ ambitions.

“In the months since June 2023, when a new policy team led by Finance Minister Mehmet Simsek, Vice President Cevdet Yilmaz, and the Central Bank of Turkey (CBT) reversed unorthodox policies, there have been many positive steps toward rational policymaking. However, challenges have emerged along the way,” said Rafik Selim, lead economist for Turkey at the European Bank for Reconstruction and Development (EBRD).

The EBRD now expects Turkey to post GDP growth of 2.7% in 2024, rising to 3% in 2025. Private consumption will likely be the biggest casualty as policymakers try to lift export-led growth above the current low share of 20% of GDP.

“Reducing spending remains difficult. The 2023 fiscal deficit was 5.2%, and the 2024 level is expected to be similar despite service cuts and tax increases. The main driver is earthquake spending. Ankara committed about $30 billion a year to help communities recover from the February 2023 quake that left several million people homeless in southern and central Turkey. Nevertheless, the unprecedented rebuilding of homes and infrastructure should support growth,” Haznedaroglu noted.

“Without the quake, the deficit would be 1.1%, which is quite reasonable,” Selim noted, adding that the estimated 2024 deficit of 5% will likely fall to 3.1% this year.

“Disinflation will likely continue this year, given the CBT’s signal that it will maintain its tight stance despite the start of rate cuts, the ongoing real appreciation of the Turkish lira, and an improvement in services inflation. We expect inflation to fall below 30% by the end of 2025,” said ING Bank analyst Muhammet Mercan.

The current account deficit has narrowed to around $10 billion from 2023’s high of $60 billion, helping rebuild foreign exchange reserves and reducing Turkey’s dependence on external financing.

“Capital flows have been strong; every recent bond and sukuk issue has been three or four times oversubscribed while yields have declined, indicating falling risk perceptions,” Selim observed.

In 2024, Fitch Ratings upgraded Turkey’s sovereign debt and several Turkish banks twice, from B- to B+ in March, then to BB- in September, making Turkey the only country in 2024 to receive upgrades from all three major ratings agencies up to that point.

“In a sense, we’ve returned to where we were in 2021, before the unconventional policy experiments that caused a dramatic deterioration in the country’s macroeconomic and financial stability outlook,” said Erich Arispe, senior director and head of Emerging Europe Sovereigns at Fitch Ratings.

“Turkey’s slower short-term growth outlook reflects ongoing economic rebalancing, which will take time given stubborn inflation,” Arispe argued. With no elections this year, falling dollarisation, rising foreign exchange reserves, and an expected drop in the fiscal deficit as earthquake spending recedes are all encouraging signs.

“Turkey has the capacity to grow. We expect 2.6% growth in 2025 and 3.5% in 2026, without creating further economic distortions. But this is a multi-year story, with the economy being recalibrated to support sustainable higher growth and realise its export and FDI potential,” Arispe said.

Another bright spot is Turkey’s exports to Europe, which rose 7.1% in January 2025 compared with a year earlier, despite economic challenges in its biggest trade market.

According to the Turkish Exporters Assembly (TIM), outbound shipments reached $10.32 billion, up from $9.63 billion a year ago.

However, growth in exports to the Eurozone has been weak over the past two years, as the continent battles high energy costs, tight government budgets, and cautious households who are choosing to save more, hurting overall consumption.

Turkey’s EV market surges

More than 105,000 electric vehicles (EVs) were sold in Turkey in 2024, marking a 45.9% increase from the previous year in a market where total vehicle sales rose only 0.5%. The share of EVs in total sales increased from 7.5% in 2023 to 10.7% in 2024.

Of the 105,315 EVs sold in 2024, 99,489 were pure electric, and 4,826 were extended-range vehicles.

The country’s first indigenous EV brand, Togg, delivered 30,093 cars last year—far surpassing the 11,534 units sold by US giant Tesla. In December 2024 alone, Togg and Tesla delivered 5,732 and 2,307 vehicles, respectively.

Togg, a joint venture of five Turkish holding companies and a business union, began deliveries only in 2023. In December 2024, Turkey’s EV market grew 82.3% to 22,017 units, capturing a 16.3% share of total vehicle sales.

EVs will make up 30% of the country’s auto market in 2025, predicted Ali Bilaloglu, CEO of Turkish auto exporter and distributor Dogus Otomotiv.
The Energy Market Regulatory Authority’s (EPDK) high-case scenario estimates that the number of EVs in Turkey will exceed 361,000 in 2025 and climb to 1.7 million in 2030 and 4.2 million in 2035.

Turkey’s charging network has expanded rapidly, and the country now ranks first in Europe in socket power and in the number of fast (DC) sockets per electric vehicle. Over the past two years, the number of charging sockets has grown from about 3,000 to 26,000.

Chinese EV manufacturer BYD’s plan to build a $1 billion plant in Turkey is seen as the sort of encouraging development the government hopes for, given the sector’s rapid growth.

Growth outlook remains wary

According to a United Nations report, the Turkish economy is expected to grow by 3% in 2024 and 3.1% in 2025, surpassing the global average of 2.8% for both years, with a moderately easing monetary policy aligned with declining inflation.

While conditions seem favourable for Ankara, a further upgrade to investment-grade status by ratings agencies would be a major step toward realising Erdogan’s broader 2028 ambitions.

According to Fitch, Turkey’s private sector has a remarkable ability to adapt.

“However, it takes time to reestablish macroeconomic credibility and for this to resonate with investors,” the agency warned.

“Many of the factors underlying Turkey’s potential also pose risks, including its geographic location, the possibility of indirect impacts from higher US tariffs, and exposure to shifts in investor sentiment. Many factors are beyond Turkey’s control, not least the current, highly fluid international environment,” Fitch said.

Turkey is working to strengthen its place in the global economy by building new ties in Asia while pushing reforms at home. Falling inflation, better credit ratings, and stronger exports give the country some momentum, even as challenges remain. Its growing EV market and rising investment interest show clear progress. Still, long-term success will depend on steady policies and stronger investor trust. If Turkey stays on this path, it could secure a stable future ahead.

The post What awaits the Turkish economy in 2025? appeared first on International Finance.

The data, collected by the Dubai Department of Economy and Tourism (DET), suggests that Dubai’s continued rise as a premier tourist destination results from sustained investment in infrastructure, strategic marketing campaigns, and the appeal of its luxury hospitality sector. The impressive growth in tourist arrivals also coincided with a record 92 million passenger arrivals at Dubai International Airport (DXB) in 2024, which is regarded as one of the busiest global transit hubs. Notably, the fact that Dubai welcomed 18.72 million visitors last year indicates a growing trend: a higher proportion of travellers are now choosing to stay in the city rather than merely using the airport for connecting flights.

Possibilities galore

Impactful local and international partnerships, creative global campaigns, and major events were key contributors to Dubai’s tourism sector reaching another record-breaking year in 2024. In fact, the Dubai Economic Agenda (D33), which aims to double the size of the Emirati city’s economy by 2033, sees the increase in international visitation as perfectly aligned with its goals.

One immediate beneficiary of this positive trend was the Emirati city’s hospitality sector, which experienced substantial growth. Hotel occupancy rates in 2024 were recorded at 78.2%, surpassing the previous year’s rate of 77.4%. Meanwhile, the total number of hotel rooms in the city expanded from 150,291 to 154,016 over 12 months.

Properties like One&Only One Za’abeel, The Lana Dorchester Collection, and SIRO One Za’abeel were among the most anticipated hotel openings of 2024. These additions contributed significantly to the increase in occupied room nights, which rose to 43.03 million, compared to 41.7 million in 2023. To add to the good news, Dubai has now become the number one city globally for Foreign Direct Investment (FDI) into tourism, according to the Financial Times’ “FDI Markets” data. The announcement of key projects like the expansion of Al Maktoum International Airport (DWC) will further provide the foundation for Dubai’s strategic growth.

The Dubai Department of Economy and Tourism (DET) has continued to collaborate closely with partners across the public and private sectors to develop and enhance Dubai’s diverse offerings, ensuring the timely delivery of world-class infrastructure, exceptional service at all touchpoints, and experiences that cater to all budgets and preferences. This was complemented by a highly successful diversified market strategy in more than 60 countries, propelling Dubai’s exceptional industry performance in 2024.

“Maintaining continuous dialogue with domestic stakeholders and more than 3,000 international partners, DET’s year-round marketing activities showcased the city as not only a must-visit destination but also one that continues to attract permanent residents from around the world,” Emirates News Agency stated.

Becoming a smart city in its truest form

Dubai will unveil the world’s tallest wellbeing resort, named “Therme Dubai,” in 2028. The facility will be located in Zabeel Park, covering 500,000 square feet and reaching a height of 100 metres. It will host a mix of relaxation, leisure, family entertainment, and healthcare services, designed to attract up to 1.7 million visitors annually. Set to be built at an estimated cost of $544 million (AED 2 billion), the project will be developed in partnership with Therme Group, an international leader in wellbeing infrastructure.

The resort will feature innovative wellness zones, including a family-friendly play zone, a relaxing retreat for adults, and a rejuvenation space. Attractions will include Michelin-star dining, 18-metre waterfalls, and the world’s largest indoor botanical garden.

Sustainability will be central to the design, with 90% of the water used being recycled and 80% of cooling needs met through clean energy. Therme Dubai aims to transform the city into a leading destination for wellness tourism, supporting Dubai’s ongoing commitment to quality of life and sustainable development.

The resort will also align with the “Dubai 2040 Urban Master Plan,” which seeks to create vibrant, healthy communities and improve the quality of life. By enabling a wholesome environment and enhancing Dubai’s competitive edge, the project will attract global companies and foreign investments. Therme Dubai, with its focus on wellness, healthcare, and recreational experiences, will further bolster the Emirati city’s growing medical tourism sector.

The resort will champion sustainability by recycling 90% of the water used in its thermal pools and meeting 80% of its cooling needs with clean energy. It will house the world’s largest indoor botanical garden, which will support urban biodiversity while showcasing over 200 plant species from around the world.

Dubai is now becoming a preferred destination for tourists looking for efficient, safe, and unforgettable experiences. The Emirati city is responding to this demand through technology-driven innovations like “Keyless Entry” for short-term rentals. Developed by the Security Industry Regulatory Agency (SIRA) and the Department of Economy and Tourism (DET), the solution offers guests digital access codes on their smartphones, eliminating the need for physical keys while enhancing both convenience and security.

The driving force behind “Keyless Entry” becoming the new normal in Dubai’s tourism sector is Deluxe Holiday Homes, which has integrated SIRA-approved smart locks into its growing property portfolio. This system allows for real-time access monitoring and specific guest permissions, providing property owners with greater security and giving guests the flexibility to check in at any time without physical keys—ideal for Dubai’s non-stop lifestyle.

Deluxe Holiday Homes is also embracing other next-generation technologies, supporting Dubai’s smart city goals and adapting to the evolving needs of travellers. The company now offers a variety of payment options, including traditional methods like cash, bank transfers, and major credit cards, as well as MIR Cards for Russian visitors, PayPal, and prominent digital currencies like Bitcoin and USDT.

The growth machine chugs on

Strategically located at the crossroads of East and West, Dubai continues to attract foreign visitors. North East and South East Asia combined delivered the highest growth rate of 24%, followed by Africa (+20%) and CIS (Commonwealth of Independent States) & Eastern Europe (+16%). Visitors from Western Europe also grew significantly (up 14%), while maintaining its position as the leading source region for international visitors to Dubai.

Helal Saeed Almarri, Director-General of the Dubai Department of Economy and Tourism (DET), said, “Dubai’s exceptional performance in the tourism sector for 2024 is a powerful testament to the visionary leadership of H.H. Sheikh Mohammed bin Rashid Al Maktoum. Through careful planning and dynamic, agile policy implementation, Dubai has successfully navigated global economic and geographic headwinds to achieve record-setting growth in tourism for a second consecutive year, having long resumed its pre-pandemic upward trajectory. This achievement is not an isolated milestone but a foundational pillar of Dubai’s diversified growth strategy, one that fuels interconnected D33 objectives—spanning talent acquisition, FDI inflow, and the global competitiveness of businesses operating within Dubai’s ecosystem.”

“Dubai’s economic trajectory is driven by its ability to adapt and innovate. This is supported by a diversified portfolio of industries, enhanced global connectivity, and an increasingly business-friendly environment. World-class infrastructure development and sustained investment in capacity have further solidified Dubai’s standing as a global leader across all critical segments. As we move forward into 2025, Dubai will continue charting new avenues for growth. By transcending traditional tourism, facilitating high-impact investment opportunities, nurturing entrepreneurship, and magnetising global talent, we will reinforce Dubai’s position as not only a preferred destination but also as a cornerstone of global economic leadership and innovation,” he added.

According to STR data, Dubai is significantly ahead of international peers such as New York, Bangkok, Paris, and Singapore, and nearly on par with London, in terms of total room inventory. Furthermore, a robust pipeline of new properties, such as the upcoming Jumeirah Marsa Al Arab and the Mandarin Oriental Downtown, will ensure the city can cater to the ever-growing demand from both visitors and residents. The high quality of hospitality establishments in Dubai also continues to be recognised. In its first year of operations, “The Lana” was ranked number 23 on “The World’s 50 Best Hotels 2024” list, while “Atlantis The Royal,” in its second year, was ranked number nine.

Smart Marketing: The decisive element

The Department of Economy and Tourism has been actively rolling out targeted campaigns to attract visitors from emerging tourism markets. These initiatives reportedly included extensive promotions positioning Dubai as a top winter destination, as well as celebrity-led advertising campaigns targeting key markets like India and South Korea. Digital media and influencer marketing have become the winning formula, with content creators encouraged to come to Dubai and, through their travel vlogs, help the emirate reach wider and younger audiences.

“In 2024, average hotel occupancy grew to 78.2%, up from 77.4% in 2023, and occupied room nights rose to a high of 43.03 million, representing a 3% growth compared to 41.7 million in 2023. Reflecting the hospitality sector’s commitment to cater to all budgets and preferences, the Average Daily Rate (ADR) of AED538 only rose marginally against the ADR of AED536 in 2023. According to STR Data, Dubai now provides guests with more attractive average rates than global peers, including Paris, New York, London, and Singapore,” Emirates News Agency reported.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said, “Dubai’s remarkable tourism performance in 2024 reflects the sustained commitment and strategic efforts of our extensive network of partners and stakeholders, and the guidance of our city’s visionary leadership. Our market strategy, built on bespoke and diversified campaigns, has been pivotal in showcasing Dubai’s diverse tourism offerings to the world, and we have leveraged strong partnerships with public and private sector organisations to enhance our global reach and promote Dubai as a leading hub for business, leisure, and innovation.”

“These collaborations have not only intensified our international efforts but have also made Dubai the destination of choice for new and returning visitors, with an increasing number of them finding the city appealing to relocate to permanently. A powerful sense of community among the almost 200 nationalities living in Dubai is also seeing more residents advocate for the city, inviting and hosting their friends and family to experience it for themselves,” he added, announcing, “As we aim to build on this momentum throughout 2025, we are committed to maintaining the highest standards of service and continuously innovating to exceed expectations, whether for tourists visiting for the first time or loyal repeat guests and residents exploring the city and enjoying its lifestyle offerings.”

Talking about DET’s creative global campaigns, one of the most notable in 2024 was “Dubai, What’s Not to Love?”, which positioned the city as a destination of choice for winter. Another was “If You Go, You Know,” which took a fresh approach, with the Emirati city’s residents showcasing their favourite parts of Dubai to encourage their compatriots to experience all it has to offer. Tailored campaigns for specific market activations included “Dubai: A Whole New You,” featuring Indian father-daughter actor duo Saif and Sara Ali Khan, and “Dubai: Who’s Ready?” starring Korean actors Park Shin-Hye and Park Hyung-Sik from the Netflix series “Doctor Slump.”

DET also announced several partnerships aimed at showcasing the city’s offerings, driving visitation growth, and further enhancing the tourism experience, including strategic agreements with Emirates, IHG Hotels & Resorts, Hilton, and Emaar Hospitality Group, all designed to elevate the destination experience for visitors and leverage the global reach of these organisations among potential travellers.

“The department also developed relationships with popular global personalities, such as Colombian singer Balvin, who filmed two music videos in the city, and American YouTuber Mr. Beast, among others, to tap into their loyal audiences and create engaging content,” Emirates News Agency noted.

These efforts by Dubai’s tourism and hospitality sectors in 2024 were recognised globally with a host of accolades and awards. At the 31st annual World Travel Awards, the Emirati city was crowned the world’s leading shopping destination and the world’s leading exhibition destination.

Mina Rashid was named the world’s leading cruise port, while Dubai International Airport became the world’s leading airport. DXB also marked a decade at the top of Airports Council International’s (ACI) list of the world’s busiest international airports (for traffic in 2023), following this up by welcoming a total of 92.3 million guests in 2024.

Dubai: New event capital of the world?

The third edition of the MICHELIN Guide Dubai was unveiled in July 2024, featuring 106 restaurants across 35 cuisines, an 18% increase from 2023. Four restaurants were awarded two stars, 15 with one star, three with a Green Star, 18 Bib Gourmands, and 69 MICHELIN-selected restaurants.

On the “World’s 50 Best Restaurants 2024” list, Tresind Studio was ranked number 13 and named the best restaurant in the Middle East, while Orfali Bros Bistro was ranked number 64 on the extended list. In November 2024, the Emirati city hosted the eighth edition of “The Best Chef Awards,” marking the first time the awards took place in the Middle East and the largest edition to date. Held at Atlantis, The Palm, the prestigious event highlighted Dubai’s status as a global gastronomy capital, with 550 chefs from 61 countries honoured.

Culinary excellence in the sector was again rewarded with the recent announcement of the Middle East & North Africa’s (MENA) 50 Best Restaurants 2025, with Dubai securing 19 spots, including a clean sweep of the top three. With the opening of gastronomy-focused developments such as J1 Beach, new opportunities continue to emerge for more F&B (Food and Beverage) concepts to succeed and secure global recognition.

“High standards and a flow of talent into the tourism and related sectors continued to be driven by Dubai College of Tourism (DCT), part of DET. In 2024, DCT launched the Middle East’s first apprenticeship in Culinary Operations, anchored by leading industry partners, including Gates Hospitality, Hilton, and JW Marriott Marquis Hotel Dubai. The transformative two-year programme provides a new source of recruiting and qualifying talent for Dubai’s ever-growing culinary sector,” Emirates News Agency observed.

Organised by the Dubai Festivals and Retail Establishment (DFRE), part of DET, Dubai also saw some of the biggest events of 2024. One was the eighth edition of the “Dubai Fitness Challenge,” which attracted a record 2.7 million participants, and the “Dubai Shopping Festival,” which celebrated its landmark 30th edition.

Trade shows, industry exhibitions, and MICE sector events also played a critical role in increasing international visitation to Dubai, providing opportunities for local and global businesses. Major industry events that attracted thousands of visitors and exhibitors in 2024 included GITEX Global (200,000 attendees, the highest in its 44-year history), Gulfood (150,000 attendees), and Arabian Travel Market (46,000 attendees). The city also secured the hosting of 437 future events in 2024, which will attract an estimated 210,731 delegates to the Emirati city over the coming years.

Only good days ahead

Work has already begun on the new AED128 billion passenger terminal at Al Maktoum International Airport (DWC), which will be the world’s largest upon its completion. The airport is estimated to handle a passenger capacity of 260 million annually.

The “2040 Urban Master Plan” aims to transform Dubai into a “20-Minute City.” As part of this, Dubai Metro’s Blue Line will be extended to 30 kilometres, connecting 14 stations and serving an expected population of about one million people.

DET is currently engaging with hospitality stakeholders to explore opportunities to bring more brands and offerings into the Emirati city. The goal is simple: to further diversify the range of amenities available to visitors and residents, particularly in new and developing districts, including Palm Jebel Ali and Dubai South.

While the city ranks number one globally for attracting greenfield FDI projects in the tourism sector, it will continue, in the coming days, to leverage innovation and new technologies such as artificial intelligence (AI) and virtual reality (VR) to create personalised and immersive experiences for both new and repeat visitors.

The “Visit Dubai” mobile app now utilises AI to offer tailored recommendations. Additionally, virtual tours allow tourists to explore attractions before their trips. AI is also being used for biometric hotel check-ins and automated immigration processes at Dubai Airport, enhancing the overall travel experience and, most importantly, transforming the Emirati city into a “smart” destination in the truest sense, driven heavily by technology.

Dubai’s tourism sector set a new record with 18.72 million international visitors in 2024. This success is driven by investments in infrastructure, marketing, and hospitality. The city’s focus on sustainability, technology, and diverse offerings strengthens its global tourism leadership. Upcoming projects like Therme Dubai and continuous enhancements promise a bright future. Aligning with the D33 economic agenda, Dubai is set to attract even more visitors, investors, and residents in the coming years.

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