All this was possible only due to the stewardship of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, who served as the Minister of Finance during this transformation.

The numbers speak for themselves, as the federal budget swelled to a historic AED 92.4 billion while maintaining a perfect balance. Sovereign bonds traded at just nine basis points above US Treasuries, and credit ratings were at the pinnacle of investment grade.

It is essential to note that when His Highness Sheikh Maktoum assumed the finance portfolio in September 2021, the economy was reeling from post-pandemic volatility, and inflation was skyrocketing. To top it all off, there was geopolitical fragmentation in the Middle East.

But he didn’t try to defend the old world. He bet on transformation. His Highness Sheikh Maktoum aggressively reconstructed the UAE with a new financial architecture that positioned it as a mature global hub, rivalling Singapore, London, and New York on fronts like institutional depth and tax arbitrage.
A technocrat’s formation

Apart from holding a bachelor’s degree in business administration from the American University in Dubai, His Highness Sheikh Maktoum also attended prestigious institutions such as Harvard and the Dubai School of Government.

The influence of Harvard on this Gulf leader is unmistakable. His ministry employed several sophisticated financial strategies, including zero-based budgeting, counter-cyclical fiscal buffers, and data-driven, integrated policy frameworks. It’s an approach that demonstrates his preference for empirical concepts of data analysis over basic intuition.

His Highness Sheikh Maktoum wears many hats. He is the Chairman of the Dubai International Financial Centre (DIFC), which oversees over 1,000 regulated firms and 500 wealth managers. The role gives him intimate knowledge of global capital demands and an understanding of regulatory certainty, common law frameworks, and frictionless repatriation.

He has also served as the Chairman of the Dubai Financial Audit Authority since 2018. In this position, he developed an obsession with compliance and waste prevention that has become an integral part of federal procurement in the UAE.

As the Chairman of the Dubai Market Supervisory Committee, His Highness Sheikh Maktoum privatised and revitalised local exchanges. It is perhaps this intersection of federal authority and Emirati-level operational experience that allows him to create policy so lucrative and alluring to the global elite.

The ministry runs with corporate efficiency. There are key lieutenants, such as the Minister of State, Mohammed bin Hadi Al Hussaini, and Under Secretary Yunus Haji Al Khouri, who translate Maktoum’s vision into bureaucratic execution.

Their high precision and capacity allow decisions on bond issuances, tax clarifications, and budget reallocations to move lightning-fast. If it were not for them, the UAE would lag, just like any other traditional sovereign bureaucracy.

The fiscal pivot

The Maktoum era is very different from all that preceded it in terms of federal budgeting. For example, he adopted zero-based budgeting from 2022 to 2026, which represents a methodological revolution.

Most federal budgets are incremental, meaning they adjust the prior year’s allocation for inflation. Zero-based budgeting, on the other hand, forces the ministry to justify every item from scratch each cycle. It’s a move that results in brutal efficiency, eliminating legacy programmes that no longer serve their purpose and reallocating that capital to more immediate priorities, like digital infrastructure and human capital development.

And fiscal discipline might seem like austerity masquerading as prudence, but that’s not the case. Let’s examine the 2026 federal budget, which was approved in October 2025. There was a staggering 29% increase over the 2025 budget of AED 71.5 billion.

In just a couple of years, the budget expanded from AED 64.1 billion to AED 92.4 billion. Although there was a massive expansion, the budget, to everyone’s surprise, remained perfectly balanced. Projected revenues are matching expenditures to the dirham.

The Federal Government is slowly becoming an active investor, and not just a service provider. The expenditure is based on investment logic rather than consumption. As usual, social development consistently absorbs almost 40% of the budget. The state is very focused on boosting workforce productivity and human capital expenditure.

The budget saw the sharpest increase in the financial investment category, with an allocation surge for outward foreign direct investment and the capitalisation of federal entities. What’s impressive is the revenue diversification that supports this expansion. While global oil prices were very supportive, the ministry actively constructed a budget that avoided excessive dependence on oil revenues.

In 2026, revenue will come from value-added tax (VAT), the new corporate tax regime, and the domestic minimum top-up tax introduced in 2025. These measures have already proven effective in protecting the Emirati economy from significant fluctuations in oil prices.

The taxation revolution

His Highness Sheikh Maktoum oversaw the delicate transition from a zero-tax jurisdiction to a competitive tax jurisdiction, threading the needle between global compliance and commercial attractiveness. Effective for financial years starting on or after June 1, 2023, the regime is looking to reach full maturity and stabilised compliance by 2026.

The architecture reflects sophisticated policy design. A standard statutory rate of 9% applies to taxable income exceeding AED 375,000, making it among the lowest corporate rates globally compared to the roughly 23% global average. A 0% rate shields taxable income up to AED 375,000, protecting SMEs (small and medium enterprises) and startups with tight cash flows from the deadweight loss of taxation on marginal businesses.

The challenge of taxing the mainland without compromising Free Zone competitiveness was addressed through the concept of the Qualifying Free Zone Person, which allows for 0% tax on Qualifying Income. The dual-track system preserved the UAE’s status as a re-export and financial hub while bringing the domestic economy into the tax net.

The implementation of OECD Pillar Two rules via the Domestic Minimum Top-Up Tax showcased sophisticated financial diplomacy. Pillar Two mandates a 15% minimum global tax rate for multinational enterprises with consolidated revenues exceeding 750 million euros. If the UAE had kept its tax rate at 9% for multinational enterprises (MNEs), the additional 6% would have been collected by the home countries of those MNEs as a top-up tax. However, by implementing the Domestic Minimum Tax (DMTT), the ministry successfully secured this 15% revenue domestically.

The approach transformed a global regulatory challenge into a national revenue opportunity, allowing the UAE to retain tax proceeds that would have otherwise benefited foreign governments.

What makes this achievement remarkable is the absence of capital flight that typically accompanies tax regime changes. The ministry conducted extensive consultation with the business community, providing clear guidance and generous transition periods.

Under His Highness Sheikh Maktoum’s chairmanship, the Federal Tax Authority evolved into a robust enforcement agency. Apart from the grace period mentality meeting its end, corporate tax was described as a permanent fixture of business operations.

Rigorous audit protocols focused on transfer pricing to prevent profit shifting. New penalties for non-compliance were introduced, and the rollout of a decentralised e-invoicing model aimed to digitise the VAT trail and increase real-time revenue visibility for the Treasury.

Building the yield curve

Before 2022, the UAE Federal Government didn’t have a local currency debt market and mostly relied on reserves and individual Emirati issuances. His Highness Sheikh Maktoum had some visionary plans. He established the Debt Management Office and launched a dirham-denominated bond programme.

It wasn’t a move done to fund deficits, as he had none. Instead, it helped to construct a sovereign yield curve that is becoming the backbone for corporate debt pricing and provides banks with high-quality liquid assets. The Treasury Bond Programme (launched in 2022) and the Treasury Sukuk Programme (launched in 2023) provided sophisticated auction mechanics, helping primary dealers discover price.

The real test was the January 26 auction, when the ministry issued AED 1.1 billion in instruments. Demand reached AED 5.15 billion, indicating a 4.7-times oversubscription, reflecting deep liquidity and high investor confidence. The yield to maturity achieved was 3.6% for Treasury Sukuk and 3.9% for Treasury Bonds, representing a spread of just nine basis points above comparable US Treasuries.

For those who do not understand, in sovereign finance, a single-digit spread over the global risk-free rate is the ultimate seal of approval. What it implies is that there is little to no credit risk, and faith in the currency peg is extremely robust.

The total outstanding volume has reached AED 28 billion, and the instruments are expected to be listed on NASDAQ Dubai for secondary market liquidity by early 2026. The new curve helps UAE corporates price their own debt issuances off the sovereign benchmark, removing the need to rely on US dollar benchmarks or opaque bank lending rates.

The text highlights the significant development of the nation’s financial architecture. Throughout 2025, the UAE maintained top-tier sovereign credit ratings, with Moody’s rating it at Aa2, S&P at AA, and Fitch at AA-.

The rating agencies praised the UAE’s fiscal discipline, substantial sovereign wealth, and effective policy framework as the primary reasons for this impressive performance and credibility.

The capital markets renaissance

Under His Highness Sheikh Maktoum, the Dubai Financial Market thrived along with the Abu Dhabi Securities Exchange. A key move came when parts of the state were opened to private investors. State-owned firms were brought onto the markets as key players.

The shift drew outside money from global investors. By 2025, ADX had not only grown to AED 3.13 trillion in value, but trading volume also climbed sharply to AED 385 billion. Up 27.1% in 2024, the DFM General Index led regional markets. Market capitalisation hit AED 907 billion during that period. Foreign investors made up half of all trading activity at DFM by year’s end. That shift marked a turn away from small local participants toward professional participation on the world stage.

The Public Sector IPO Programme successfully facilitated each filing from start to finish. A notable example is Talabat’s debut in 2024, which raised AED 7.5 billion, making it the largest tech offering globally that year. A fine demonstration of the fact that local markets can support significant tech valuations similar to those in global financial hubs.

What set Talabat apart was not just its size; it highlighted that Dubai is competitive in attracting tech companies, drawing them away from London and Nasdaq, where over 60% of shares were acquired by international funds.

Other landmark deals included ADNOC Gas and ADNOC Logistics & Services trading on the Abu Dhabi Exchange (ADX), both valued in the billions. These listings provided investors with direct access to energy logistics. Capital flowed in both directions, with state holdings transforming into capital that was reinvested in new national projects, simultaneously creating substantial pools of available funds. These listings enhanced the UAE’s representation in major indexes, such as the MSCI Emerging Markets.

Changes also took hold in how markets operate, including the launch of entities like xCube that actively trade shares. Doors have opened for international setups like dual trading platforms and special purpose acquisition companies. Methods around setting share prices also became more adaptable, brought into line with practices already established across London and New York.

Banking sector resilience

By mid-2025, banking assets had reached AED 4.973 trillion, reflecting a 15.4% increase compared to the previous year. Despite the introduction of a corporate tax, lending continued to rise by 11.1%, indicating that the financial markets adapted smoothly without hindering project development.

A significant improvement was observed in asset quality, with the net non-performing loan ratio falling sharply to 1.7%. Meanwhile, the capital strength stood at 17.3%, well above the requirements set by Basel III.

From day one, the ministry helped shape how digital finance works across UAE banking. With the Jisr system live for Central Bank Digital Currency, connected to the Instant Payment Interface, the country now leads in fast-settlement technology. Instead of relying on overseas systems, local businesses now use Jaywan (a homegrown card option) to cut out middlemen and save on transaction fees.

The fintech ecosystem has exploded under this supportive regulatory environment. Digital lending partnerships like du Pay and Deem Finance are providing instant credit decisions to consumers, while the entry of specialised institutions like crypto-focused Maerki Baumann demonstrated regulatory sophistication in balancing innovation with risk management.

Perhaps the most critical defensive victory was navigating the FATF evaluation process. After the UAE was added to the Grey List in early 2022, the country faced rising compliance costs and reputational risks. In response, the ministry established a high-level committee to tackle strategic deficiencies.

In February 2024, the FATF removed the UAE from the Grey List, acknowledging the significant progress made. The decision led to a reduction in correspondent banking costs and the reinstatement of full investor confidence.

The removal reduced the cost of international transactions for UAE banks by eliminating the enhanced due diligence requirements that foreign correspondents had imposed, effectively lowering the friction cost of cross-border finance by 20 to 30 basis points on average.

The ministry intensified reforms ahead of 2026’s mutual evaluation, issuing Federal Decree Law No. 10 of 2025 to reinforce the AML/CFT framework with criminal penalties of up to AED 50 million for unlicensed financial activities and rigorous campaigns to update Ultimate Beneficial Owner registries. The campaign to clean up the UBO registry was particularly aggressive, with over 200,000 corporate entities required to update their records under threat of administrative penalties.

In May 2025, Abu Dhabi’s hosting of the first global roundtable of FATF-Style Regional Bodies symbolised the UAE’s transformation from a jurisdiction under scrutiny to a convener and thought leader on financial integrity.

The legacy of financial maturity

During His Highness Sheikh Maktoum’s tenure as the UAE Minister of Finance, the Emirates definitively moved beyond being labelled an emerging market. Progress came through balancing bold spending (up 29%) with careful management, boosting the budget to AED 92.4 billion.

Growth received a push without relying solely on oil revenues; new sources of income helped stabilise public finances. Local bond segments emerged, providing residents and businesses with market tools they previously lacked. Stock trading areas experienced a resurgence, creating opportunities for long-term investment.

While nearby Gulf countries are taking their time to complete their economic reforms, the UAE has excelled in its efforts due to its sheer speed. Deep reforms took place here in just half a generation’s lifetime. The Gulf nation, at short notice, has successfully navigated the most difficult transition any petro-state can attempt, whether from rentier to value creator or from resource extractor to financial powerhouse.

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In absolute terms, global debt exceeded $324 trillion in early 2025, up from around $255 trillion in 2019. This massive debt overhang threatens to undercut every economy’s ability to withstand the latest headwinds, including a return to protectionism in the form of higher trade tariffs. Without urgent course correction, the world could be headed toward a widespread debt crisis with lasting economic and social repercussions.

Global debt overhang and its risks

World Bank Chief Economist Indermit Gill notes that debt is a powerful tool for growth and stability, yet it is also “a form of deferred taxation.”

By borrowing instead of immediately raising taxes, governments can finance long-term investments that benefit future generations or support incomes during a downturn when austerity would be counterproductive.

This strategy makes sense as long as economic growth outpaces the cost of borrowing. Eventually, however, the piper must be paid. If a country’s income does not grow faster than its interest payments, taxes, or inflation, it will inevitably have to increase to service the debt.

In other words, today’s debt is simply tomorrow’s taxes by another name. Persistently high debt, without commensurate growth, thus becomes a drag on development, a barrier to economic progress that grows taller with each passing year of heavy borrowing.

That barrier has seldom been higher than it is now. Over the past 15 years, developing countries have become hooked on debt, accumulating liabilities at a record pace of roughly six percentage points of GDP per year. This debt binge was fuelled by years of ultra-low global interest rates and often justified by optimistic growth projections.

History shows that such rapid debt build-ups often end in tears. Indeed, research indicates that about half of large debt booms in emerging and developing economies have been followed by financial crises. In effect, the odds that the recent developing-country debt surge will trigger a crisis somewhere are roughly 50-50.

With global debt levels at all-time highs, the world is precariously balanced on what Gill calls a “debt time bomb.” Each additional shock, whether economic, geopolitical, or climatic, increases the chances of a detonation.

In May 2025, the International Monetary Fund (IMF) stated that the global public debt could increase to 100% of global GDP by the end of the decade if current trends continue.

According to the IMF report, “The rising ratio of public debt to GDP reflects renewed economic pressures as well as the consequences of pandemic-related fiscal support.”

“This trend raises fresh concerns about long-term fiscal sustainability as many countries face rising budget challenges,” the global monetary body remarked.

The report indicated that approximately one-third of countries, representing 80% of global GDP, now have public debt levels exceeding those recorded prior to the COVID-19 pandemic and are increasing at a faster rate. More than two-thirds of the 175 economies examined in the IMF’s study are carrying heavier public debt burdens compared to the period before the pandemic began in 2020.

In March 2025, the United Nations Trade and Development (UNCTAD) noted soaring interest payments were squeezing budgets, forcing governments to choose between repaying creditors and funding essential services.

“Developing countries are sinking deeper into a debt-driven development crisis. Their external debt, money owed to foreign creditors, has quadrupled in two decades to a record $11.4 trillion in 2023, equivalent to 99% of their export earnings. A mix of factors has fuelled this surge, including increased borrowing for development projects, volatile commodity prices, and widening public deficits. The COVID-19 pandemic worsened the situation, as countries borrowed heavily to offset the economic fallout and fund public health measures,” UNCTAD added.

While debt can be a vital tool for economic growth and development, it becomes a problem when repayment costs outpace a country’s capacity to pay. That is now the case for two-thirds of developing countries. Debt distress now looms over more than half of the 68 low-income countries eligible for the IMF’s Poverty Reduction and Growth Trust, more than double the number in 2015.

Rising interest rates

Exacerbating the danger, the latest debt surge has been accompanied by the fastest increase in global interest rates in four decades. After a long era of cheap money, central banks worldwide applied the monetary brakes in 2022 and 2023 to combat inflation.

The result has been a sharp spike in borrowing costs, as interest rates Monjumped multiple percentage points within months, the steepest rise since the early 1980s. For about half of all developing economies, debt servicing costs have essentially doubled in a short span. On average, the interest payments on government debt in developing countries rose from under 9% of government revenues in 2007 to about 20% of revenues by 2024.

Such a surge in debt service burdens would be daunting even in good times. Amid today’s challenges, it verges on the catastrophic. By 2024, many governments were spending one-fifth of their budgets just to pay interest, resources no longer available for public investments or essential services.

Although the world has so far averted a systemic financial meltdown of the kind seen in 2008 and 2009, too many developing countries are now caught in a “doom loop” of debt and underinvestment. To service their loans, governments are cutting back on the very spending that would boost future growth, slashing funding for education, healthcare, and infrastructure.

This self-defeating cycle undermines human development and erodes the productive capacity needed to escape from debt. Alarmingly, this is not a problem confined to a few outliers; it has become a widespread phenomenon.

Almost half of humanity, about 3.3 billion people, now live in countries that spend more on interest payments than on health or education. In low-income countries, especially, scarce fiscal resources that should be used to build schools, clinics, or roads are instead absorbed by creditors. It is a vicious circle: high debt forces spending cuts, which strangulate growth, which in turn makes the debt even harder to bear.

Debt threat to future workforce

Nowhere is this doom loop more troubling than in the world’s poorest nations. Some 78 low-income countries eligible to borrow from the World Bank’s International Development Association (IDA) are teetering on the brink of a debt disaster. These countries are home to roughly one-quarter of the world’s population, and include a large share of the 1.2 billion young people poised to enter the global workforce in the next 10 to 15 years.

The future of the global labour market, and of these nations’ development, depends on whether this youth bulge can be educated, healthy, and productively employed. Yet high debt threatens to derail that potential. Saddled with onerous debt service, many of these countries cannot invest adequately in their burgeoning young populations.

The result could be a lost generation, where millions of youths are deprived of quality schooling, healthcare, and jobs, sowing the seeds for frustration and instability down the line.

Policymakers, unfortunately, have so far responded with complacency or denial. In what Gill describes as “another triumph of hope over experience,” many governments are effectively gambling that a favourable global environment will somehow rescue them from the debt trap. They bank on global growth suddenly accelerating and interest rates falling just enough to defuse the debt bomb. But counting on a lucky break is a perilous strategy.

In reality, most of these countries are already in deep trouble by any objective measure. According to the IMF, about 60% of low-income countries are now either in debt distress or at high risk of debt distress.

Several have already defaulted or are seeking restructuring of their debts in the wake of the pandemic and other shocks. The world cannot afford another decade of drift and denial on this issue, as the costs in foregone development and human suffering would be staggering.

Low growth, high borrowing costs

If anything, the broader global outlook is making debt burdens harder to manage. Escalating geopolitical tensions and current trade wars, marked by increased tariffs and protectionist measures, have further darkened the economic outlook. Business confidence has been undermined by record levels of policy uncertainty in international trade.

At the start of 2025, private economists expected about 2.6% global GDP growth for the year, but as new data and conflicts emerged, the consensus forecast was downgraded to roughly 2.2%. That is nearly one-third below the average growth rate of the 2010s.

The World Bank likewise projects a significant growth slowdown in 2025 compared to prior estimates. Slower growth directly translates into lower revenues for governments and fewer job opportunities, making it even harder for heavily indebted countries to grow their way out of debt.

At the same time, borrowing costs are expected to remain far higher than they were in the last decade. In advanced economies, central banks have indicated that policy interest rates will average around 3.4% in 2025 and 2026, a level more than five times the ultra-low average that prevailed from 2010 to 2019.

In the United States, for example, the Federal Reserve raised its benchmark rate by over five percentage points in 14 months, the most aggressive tightening in over 40 years. Such moves, echoed by other major central banks, have ended the era of near-zero rates.

For developing economies, the consequences are painful, as higher global rates push up the cost of new financing and often strengthen the US dollar, making dollar-denominated debts harder to repay. In an era of scarce public resources, boosting growth and development will require mobilising private investment, yet foreign capital is unlikely to flow into countries perceived as debt-crippled and low-growth.

Prioritising debt reduction

Given these realities, reducing debt levels is an urgent priority, especially for developing economies with chronically high debt-to-GDP ratios. This must start with responsible national policies, as governments should rein in excessive borrowing and improve their fiscal balances where possible to stabilise debt dynamics.

Some may need to make painful but necessary adjustments to curb non-essential spending and boost domestic revenue. However, the challenge is too large for individual countries to solve alone, especially when many are already insolvent or nearly so.

What is needed is a systemic solution. The global financial community must come together to upgrade the apparatus for assessing debt sustainability and handling debt distress. The current international system for sovereign debt restructuring is widely seen as inadequate, being too slow, too fragmented, and too biased toward kicking the can down the road.

All too often, official lenders and institutions opt to extend new “bridge” loans to tide countries over, when in fact many low-income countries require outright debt write-offs to restore solvency. Procrastination through serial lending ultimately serves neither debtor nor creditor if a country’s debt is unsustainable.

Recent trends underscore the scale of the problem. The number of countries facing high debt levels has jumped dramatically, from 22 countries in 2011 to 59 countries in 2022. As of last count, 52 developing countries, nearly 40% of the developing world, are in serious debt trouble, meaning they either are already in default or face severe financial stress.

Yet progress on mechanisms such as the G20 Common Framework for debt treatment has been disappointingly slow, hampered by coordination problems among traditional creditors, newer lenders, and private bondholders.

To prevent a lost decade for development, the world needs a more streamlined and swifter process for restructuring unsustainable debts. This could involve tougher assessments to distinguish liquidity problems from true insolvency, and bolder action to write down debts that cannot reasonably be repaid without strangling a country’s future.

Returning to prudent debt levels

As the saying goes, when you find yourself in a hole, the first step is to stop digging. The world’s borrowing binge must come to an end. The era of extraordinarily low interest rates that once tempted many countries to live beyond their means is over.

Over the last five years, a series of unprecedented crises, both natural and man-made, made heavy borrowing unavoidable in some cases, as governments acted to cushion their people from harm. Now, however, a return to prudence is essential. Policymakers should re-embrace clear fiscal limits and revert to earlier norms of what constitutes excessive sovereign debt.

One sensible guideline is what Gill calls the “40-60 maximum,” roughly 40% of GDP as an upper debt limit for low-income countries, and 60% of GDP for high-income countries. Middle-income economies would fall somewhere in between those benchmarks.

While these ratios are not necessarily strict thresholds, they hark back to long-standing debt targets, for example, the 60% debt-to-GDP limit in the European Union’s fiscal rules, which were associated with greater stability. Adhering to such limits would give countries more fiscal space to handle shocks and invest in development, instead of constantly teetering on the edge of default.

The looming global debt disaster is not inevitable. It is a man-made crisis, and it can be solved with decisive action. Reining in debt and reigniting growth are difficult tasks, but the alternative is far worse. Without corrective measures, persistently high debt will continue to stall economic progress and heighten the risk of financial crises.

By contrast, a combination of debt relief, sound fiscal management, and growth-enhancing reforms can gradually defuse the debt bomb. The world has arrived at a critical juncture. Having deferred the costs of debt for years, governments and international institutions must now confront them.

The next generation’s prosperity depends on choices made today, on the willingness to restore fiscal discipline, revamp the global debt architecture, and unleash the productive potential of open markets and private enterprise.

The window to act is narrowing, but with clarity of purpose and collective resolve, a global debt disaster can be averted. The lesson of recent years is clear. We can no longer afford another decade of denial and delay on sovereign debt. The time to pay the piper, and to chart a sustainable path forward, is now.

The post Averting the global debt crisis appeared first on International Finance.

Bank of Baghdad has expanded its portfolio to domains like retail banking, card services, retail loans, corporate banking, and credit facilities. In 2008, with the development of financial markets, the bank obtained membership in leading global payment companies Visa and Mastercard, strengthening its regional position. To keep pace with this progress, the bank activated its first ATM at the Al-Mansour branch, providing customers with more convenience and ease.

The following year, the Bank of Baghdad launched digital services, including internet banking and SMS notifications, while also establishing an extensive ATM network. By 2011, the bank had achieved numerous milestones, including establishing one of the largest branch and ATM networks, which enhanced its presence and facilitated customer access to its services.

Bank of Baghdad also added a new feather to its crown in 2024, as International Finance honoured the bank as the “Best Commercial Bank in Iraq” for the second consecutive year, a recognition that further highlights its commitment to delivering exceptional banking services.

The bank also expanded its operational footprint by signing a cooperation agreement with Visa International, enhancing its financial innovation. It also raised its capital to 400 billion Iraqi dinars, reflecting its commitment to delivering stronger and more sustainable banking solutions.

Bank of Baghdad already possesses long-standing expertise and a strong network of correspondent banks in major financial hubs, with its global network including leading international banks like Citibank, JPMorgan Chase, DBS Bank, UniCredit Bank, and DBS Bank (China). The comprehensive network has made international transactions simpler and faster, apart from providing competitive foreign exchange rates and currency services.

The driving force behind Bank of Baghdad’s remarkable rise is its Senior Banking Executive, Ahmed T. Muallah, a seasoned industry leader who brings over 25 years of experience across renowned global financial institutions, including Barclays, Citigroup, Deutsche Bank, Standard Chartered, and Renaissance Capital.

Ahmed Muallah built his career at the intersection of international investment banking and frontier market growth with a proven track record of driving revenues, building high-performing teams, and expanding market share across Europe, the Middle East, and Iraq.

Currently serving as Acting CEO at the Bank of Baghdad, Ahmed Muallah previously served as Chief Business Officer at the National Bank of Iraq, where he spearheaded consumer, commercial, and SME banking operations, championed financial inclusion initiatives, and strengthened operational efficiency across all business lines.

Earlier in his career, Ahmed Muallah established the operations of Renaissance Capital in the Middle East, managed Deutsche Bank’s regional growth, and led Standard Chartered’s wholesale banking presence in Iraq, delivering revenues far beyond forecasts.

With deep expertise in investment banking, asset management, and commercial banking, Ahmed Muallah has successfully overseen multi-billion-dollar transactions, managed professionals in over a dozen countries, and advised on landmark projects spanning infrastructure, healthcare, and education.
Not resting upon its laurels, Bank of Baghdad has already drawn up its roadmap for 2026. Key plans include driving business growth by increasing the customer base, adding 15 new branches, and advancing digitalisation by improving mobile banking, the mobile app, and the website.

The bank, which already provides account and card services along with gold loans in its retail segment, will introduce more products within the category. Equal attention will be paid to strengthening overall operations to ensure consistency and quality.

Bank of Baghdad recently signed a strategic agreement with the International Finance Corporation (IFC) to join the Global Trade Finance Programme, opening wider horizons for its clients to access international markets. It is now well set to pull off more strategic partnerships that support the bank’s sustainable growth, reaffirming its commitment to responsibility, innovation, and customer service.

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In addition to continuing to face local difficulties, the ratings agency further stated that the sultanate’s DCM is still among the smallest in the Gulf region and is not immune to the general slowdown in primary market dollar issuance and the ongoing global uncertainty.

According to the report, Oman has limited private sector options and primarily draws on banks, rather than a broader spectrum of investors. Additionally, there is little activity or trading in debt that is valued in the local currency.

“The Omani DCM is still developing…It faces issues such as limited private sector issuance, investor base concentrated with banks, shallow Omani rial market and low secondary market liquidity,” the ratings agency said.

Additionally, according to Fitch, sukuk continues to dominate the funding mix, making up 63.4% of the DCM issuance. As of 2024, the remaining portion was made up of conventional bonds, except for treasury bills. Fitch assigned a BB+ rating to approximately USD 7.2 billion in outstanding Omani sukuk during the first three months of the year.

More than half (55.2%) of the sukuk were owned by corporations, whereas sovereigns owned 44.8%. The issuance of sukuk increased by 124 points to USD 2.09 billion last year, surpassing that of conventional bonds, which also increased by 45 points to USD 7.04 billion.

In 2025, the Omani government hopes to raise USD 1.09 billion from the local market. According to the Ministry of Finance, USD 6.3 billion will be needed for financing this year, of which 53.2% will come from external debt, 30.5% from local borrowing, and 16.3% will come from reserve withdrawals.

Oman recorded a fiscal surplus and moderate economic growth in 2024, driven by higher oil revenues and an expansion in non-oil activities, official data from the National Centre for Statistics and Information (NCSI) showed.

Meanwhile, the Sultanate’s gross domestic product (GDP) at constant prices grew by 1.6% year-on-year to RO 37.7 billion (USD 98.1 billion), while GDP at current prices fell by 3.0% to RO 40.7 billion, largely due to lower oil activity. Non-oil activities expanded by 3.7%, led by a strong performance in manufacturing (+8.5%), wholesale and retail trade (+7.1%), and financial services (+3.5%). Oil-related activities declined 3.6% on a real basis, as crude output and prices softened.

While manufacturing value added rose on the back of refined petroleum products and basic chemicals, the construction sector showed modest gains. Average daily crude production in January and February 2025 stood at 987,000 barrels, down 1.4% from the same period in 2024. However, the average price of Omani crude rose 1.0% to USD 72.8 per barrel in February.

Natural gas production, including imports, rose 3.0% in the first two months of 2025, driven by increased use in oil fields (+24.2%). Government revenues rose 4% to RO 10.2 billion by end-October 2024, supported by oil revenues (+11%), goods and services taxes (+18%), and relatively stable non-oil receipts. Public spending increased 8% to RO 9.68 billion, including higher allocations for development projects and sectoral subsidies. The overall budget recorded a surplus of RO 520 million, compared to RO 830 million in the same period of 2023.

Merchandise exports rose 6.8% to RO 24.2 billion in 2024, with oil and gas exports up 18.4% to RO 16.3 billion. However, non-oil exports fell sharply by 16.3%, with declines across minerals, chemicals, and live animals. Imports, meanwhile, climbed 12.1% to RO 16.7 billion, reflecting higher demand for electrical machinery, mineral products, and transport equipment.

Foreign direct investment (FDI) reached RO 30.04 billion by the end of 2024, up 18% from the previous year. The United Kingdom remained the top investor, contributing RO 15.3 billion (+22.9%), followed by the United States (RO 7.67 billion) and China (RO 1.29 billion).

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The gross profits of Estithmar Holding reached QAR 1 billion, up from QAR 801 million in 2023, reflecting a 27% increase. The company also achieved earnings before interest, tax, depreciation, and amortisation (EBITDA) of QAR 742 million. The results showed a 20% rise in the company’s net profit compared to 2023, reaching QAR 422 million. Earnings per share also increased by 17% from 2023, reaching QAR 0.119 per share.

The 20% growth in net profit is attributed to the increase in the company’s revenues, which were primarily driven by the contracting and healthcare clusters. The contracting cluster expanded by efficiently executing and delivering projects in the Kingdom of Saudi Arabia. The healthcare cluster contributed to the rise in 2024 revenues, driven by the sustainable performance growth of The View Hospital in Qatar and the expansion of the cluster through the subsidiary Apex Health, which signed management and operation agreements for several hospitals. A set of measures taken in the ventures cluster has also contributed to restructuring the business model and increasing revenues.

The financial results for 2024 reported a 25% increase in assets compared to the previous year, resulting from the new projects added to Estithmar Holding’s portfolio, including the Korean Medical Centre in Lusail, the Rixos Baghdad project in Iraq, and the Rosewood Maldives Resort. The results also revealed a current liquidity ratio of 1.22. The Board of Directors of Estithmar Holding recommended a dividend distribution equivalent to 10% of the capital, with one free share for every 10 shares.

The results have demonstrated the holding company’s ability to maintain sustainable growth, enabling it to expand regionally and internationally, supported by the broad trust it has gained from its successful track record across all operational sectors locally. In 2024, Estithmar Holding signed numerous agreements with sovereign wealth funds and regional government entities to transfer its expertise, particularly in healthcare, specialised contracting, services, and real estate development sectors.

The contracting cluster contributed 42% to the company’s revenues in 2024, driven by its notable activity both locally and regionally, especially in Saudi Arabia. The cluster completed several agreements and contracts in 2024, with Elegancia Arabia, one of Estithmar Holding’s companies, participating in major projects such as NEOM, the Red Sea Project, and AMALA, among others.

The services cluster contributed 35% to the company’s revenue. This sector provides services such as facilities management, catering services and solutions, manpower and human resources, and event support, among others. In 2024, the cluster expanded into Iraq and Libya, in addition to its operations in Saudi Arabia and Jordan.

The healthcare cluster, through Estithmar Holding’s subsidiary Apex Health, continued to achieve sustainable growth, driven by the company’s expansion in applying the hospital management and operation model regionally, including in Iraq and Libya. Hospitals in Qatar, including The View Hospital and The Korean Medical Centre, continued to gain trust by adhering to the highest international quality standards, hosting world-class medical professionals, and activating partnerships with leading international medical institutions such as Cedars-Sinai (USA) and Asan Medical Centre (South Korea), among others.

Estithmar Holding’s cluster performed steadily, attributed to the demand for the sector’s projects, including Al Maha Island, which received over 4.7 million visitors in 2024. The year also concluded with a strong finish for the second season of Lusail Winter Wonderland and a successful launch of its third season, attracting thousands of residents and tourists in Qatar. Additionally, the company’s hotel facilities, such as Katara Hills and Maysan Doha Resorts, continued to lead the luxury hospitality sector in Qatar throughout the year.

Similarly, the cluster’s projects outside Qatar have progressed. The Rixos Baghdad project, which features residential apartments and a world-class hotel, made significant progress in its construction phase. The Rosewood Maldives Resort project is also advancing rapidly in terms of completion and is expected to become a prominent tourism destination in the Maldives and globally.

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“The transaction is expected to close by the end of the second quarter, pending Enservco stockholder approval and the company’s ability to secure the necessary capital through equity or debt financing,” reported Investing.com on the matter.

Buckshot Trucking, founded in 2017, has established its specialisation in hot shot trucking, dedicated freight, and less-than-truckload services within the energy sector. The company reported unaudited 2023 earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately USD 2.3 million on revenues of USD 8.2 million.

“By providing fair pricing, honesty, and dependable services in a highly competitive market, our company has experienced consistent and aggressive growth with increases in our customer base and revenues month after month, quarter after quarter,” Buckshot explained its operations in the following words on their website, while adding, “To date, our company has grown to offer multiple service lines in multiple sectors. Our simple approach to quality service, safety, and dependability has earned Buckshot Trucking LLC the opportunity to provide services across the United States to a diverse group of over 100 customers.”

Buckshot, as of March 2024, is providing trucking solutions like Flatbed (an open trailer where equipment can be loaded from all sides), Step Deck (tailored to haul a higher load without having to buy permits for the load), Dry Van (enclosed trucking method to shield sensitive shipments from weather hazards like high winds, rain, or direct heat), Refrigerated Trucking, Hot Shot Trucking (specialised in delivering time-sensitive loads, to save a company from situations like downtime or production shut down) and Trailer Mounted Forklift.

Enservco’s Chairman and CEO, Richard A. Murphy, while expressing enthusiasm for the acquisition, highlighted the strategic transformation it represents for the company by entering the logistics business. Murphy further noted that Buckshot’s addition will provide year-round growth opportunities and operational and financial visibility, while enhancing services for Enservco’s customer base and improving financial predictability.

As per the reports, Buckshot’s founders, Tony Sims and Jim Fate, will continue to lead the business post-Enservco acquisition, aiming to leverage the latter’s operational footprint for expansion.

The acquisition comes in the background of Enservco reporting improved operational performance in 2023. Murphy anticipated that integrating Buckshot would massively improve Enservco’s financial results for 2024 and support further the company’s growth in subsequent years.

“This strategic acquisition is intended to create a new operating division for Enservco, complementing its existing market position in hot oiling, acidizing, and frac water heating services,” the venture stated further.

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