Trump 2.0 targets technology
30 January 2025
As Donald Trump settles into his second term, dubbed ‘Trump 2.0’, the administration is set to bring about a seismic shift in global technology, artificial intelligence (AI) regulation, data sovereignty, cryptocurrency and the ever-escalating US-China tech war.
The central role that technology is expected to play was demonstrated at Trump’s inauguration on 20 January, where Tesla and SpaceX CEO Elon Musk, Meta CEO Mark Zuckerberg, Alphabet Inc CEO Sundar Pichai and Amazon founder Jeff Bezos had prime seats.
With Trump championing policies prioritising domestic interests and reshaping international dynamics, Middle Eastern investors and companies will play a key role in shaping this new era of tech-infused geopolitics.
The wheels are already turning. On 22 January, just two days after Trump’s inauguration, he announced that Abu Dhabi- based AI-focused fund MGX has teamed up with US-based tech firms Oracle and ChatGPT creator OpenAI, and Japan’s Softbank, to form the Stargate project, which aims to invest $500bn to build AI infrastructure in the US.
When announcing the project, Trump described it as “the largest AI infrastructure project by far in history”.
America first
Two weeks earlier, on 7 January, Hussain Sajwani, founder and chairman of UAE-based Damac Properties and Damac Group, made headlines by pledging $20bn to develop data centres in the US.
Sajwani’s $20bn commitment to US data centres is not just a business transaction – it demonstrates the UAE’s strategic pivot to align with Trump’s America First policy. Unlike the real estate deals offered by Sajwani that Trump publicly declined in 2017, the latest investment offer places resources directly into the US, promising jobs, innovation and a fortified tech infrastructure in states including Texas, Ohio and Michigan.
For MGX, Sajwani and other Gulf investors, the deal offers not only financial returns but also political capital in an administration that values loyalty and mutual economic benefit.
The timing is also strategic: as Trump prepares to loosen regulatory constraints on AI and data, Gulf nations have the opportunity to tap into US expertise while positioning themselves as indispensable partners in the rapidly shifting tech landscape.
Tech wars
Geographically and politically, the Middle East – particularly the GCC states – sits in the middle of the simmering tech war between China and the US, which may boil over during the Trump presidency.
The decoupling of the two economies is expected to continue, with Trump reinforcing policies that discourage US companies from engaging with Chinese firms.
Policies could involve stricter foreign investment vetting and expanded technology transfer restrictions to China. The Trump administration has also threatened to impose high tariffs on Chinese goods, which could disrupt the established ties between US and Chinese tech industries.
The ongoing tensions could lead to a bifurcation of global supply chains, with significant implications for companies operating in both markets.
For Middle Eastern countries, this decoupling offers a rare window of opportunity. As the US and China distance from one another, GCC players can position themselves as neutral ground for technology partnerships. The region could bridge the two worlds by attracting global firms to invest in regional tech hubs that offer a haven for talent and innovation.
Trump’s America First policies are also expected to accelerate the development of the US semiconductor sector, a critical component of the tech war. While this could disrupt global supply chains, it may also create demand for GCC investments in US tech manufacturing and research facilities, further deepening economic ties.
Another transformative area of Trump’s second term will be his approach to AI.
On 13 January, just days before Trump took office, the White House issued a brief of a regulation by the Department of Commerce imposing controls on the exports of advanced computing integrated circuits that support AI.
The regulation’s final draft divides countries into three tiers. Chip exports to the top-tier countries, comprising 18 of the closest US allies, are “without limit”, while the third tier is reported to comprise countries of concern, including Macau (China) and Russia.
All other nations and states, including those in the GCC, are presumed to be mid-tier countries, where a cap of approximately 50,000 graphics processing units between 2025 and 2027, will apply.
Individual companies from these countries will be able to achieve higher computing capability if they comply with US regulations and obtain validated end-user status.
The White House brief is no longer available online, but a copy of the regulation can still be found in the Federal Register, the US government’s daily journal.
Middle Eastern investors and companies will [help shape] this new era of tech-infused geopolitics
Deregulation likely
The regulation-heavy approach of former president Joe Biden’s administration will likely give way to a deregulatory environment, emphasising commercial innovation over antitrust crackdowns.
For GCC countries such as Saudi Arabia and the UAE, this presents a double-edged sword. Both nations have ambitious AI investment plans – Abu Dhabi’s MGX partnership with BlackRock and Microsoft aims to mobilise $100bn for AI infrastructure, while Riyadh’s Project Transcendence seeks to redefine the region’s technological footprint. Trump’s deregulatory policies could catalyse innovation and partnerships with US firms, offering access to cutting-edge AI solutions.
The emphasis on deregulation may also create challenges. Without robust ethical and safety guidelines, the global AI ecosystem could face reputational risks, making cross-border collaborations more complex. For the GCC, balancing the benefits of US technological advancements with the need for ethical AI development will be a delicate dance.
As geopolitical tensions rise, the effects of Trump’s focus on data sovereignty will reach far beyond US borders. Nations increasingly prioritise data protection, creating stricter regulations to control where and how data is stored, and the GCC, with its ambitious AI and data centre projects, must adapt swiftly to these changes.
The outlook for developing energy-hungry data centres in the US could be further bolstered by plans to deregulate the energy industry.
“If energy deregulation is unleashed, the biggest beneficiaries of Trump’s energy policies could be in data centre buildout, with implications for US leadership in AI, both in next-generation technologies and economic dominance over the coming generation,” according to a report by GlobalData’s TS Lombard.
For Middle Eastern businesses, Trump’s policies could mean stricter requirements when working with US tech firms. Data from US companies and citizens may need to be stored domestically, complicating cross-border operations.
However, this also presents an opportunity for the GCC states to bolster their data sovereignty frameworks, attracting investments from companies seeking alternatives to US or Chinese infrastructure.
The unexpected should be expected, and the future belongs to those who adapt the fastest
Backing Bitcoin
Cryptocurrency is another major opportunity for the GCC.
Trump’s surprising endorsement of Bitcoin – the price of which recently surged past $75,000 – signals a potential shift in US crypto policy. A more favourable regulatory environment under Trump could drive mainstream adoption of cryptocurrencies, attracting investors and innovators alike.
As regional players such as the UAE have been pioneers in blockchain technology, this could catalyse further growth.
Dubai’s Blockchain Strategy 2025, aimed at positioning the emirate as a global blockchain hub, aligns well with Trump’s pro-Bitcoin stance. By collaborating with US firms and leveraging blockchain’s potential for financial and governmental applications, the GCC could cement its position as a leader in the cryptocurrency space.
As his backing of Bitcoin demonstrates, Trump’s position on tech issues is hard to predict. This was reinforced when he issued an executive order allowing social media application TikTok to resume services to its 170 million users in the US.
On 18 January, the Chinese-owned app stopped working in the US after a law banning it on national security grounds came into effect. Trump had previously supported plans to ban the app.
For business and government alike, the message is clear: the unexpected should be expected, and the future belongs to those who adapt the fastest.
As Trump reshapes the global tech landscape, GCC investors like Sajwani are well positioned to capitalise on the changes. The US-China decoupling, AI deregulation and a focus on data sovereignty create openings for Middle Eastern nations to assert themselves as key players in the global tech economy.
Challenges remain. Trump’s America First policies could lead to tighter restrictions on foreign investments, requiring Gulf investors to navigate a more complex regulatory environment. Additionally, the potential talent drain to the US, driven by Trump’s prioritisation of domestic commercial interests, could slow the region’s AI ambitions.
To stay competitive, GCC nations will need to double down on their investments in education, infrastructure and innovation. By fostering homegrown talent and creating favourable conditions for international partnerships, the region can mitigate the risks of Trump’s policies while reaping the rewards.
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Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:
> PROJECTS: Another bumper year for Mena projects
> GIGAPROJECTS INDEX: Gigaproject spending finds a level
> INFRASTRUCTURE: Dubai focuses on infrastructure
> US POLITICS: Donald Trump’s win presages shake-up of global politics
> REGIONAL ALLIANCES: Middle East’s evolving alliances continue to shift
> DOWNSTREAM: Regional downstream sector prepares for consolidation
> CONSTRUCTION: Bigger is better for construction
> TRANSPORT: Transport projects driven by key trends
> PROJECTS: Gulf projects index continues ascension
> CONTRACTS: Mena projects market set to break records in 2024
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Broader region upgrades its airports
25 July 2025
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Middle East invests in giant airports
25 July 2025
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Gulf banks navigate turbulent times
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25 July 2025
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Broader region upgrades its airports Yasir Iqbal
25 July 2025
This aviation package also includes:
> Middle East invests in giant airports
> Global air travel shifts east
While high-profile projects such as the development of King Salman International airport and the expansion of Al-Maktoum International airport have captured headlines, a quieter but equally significant story is unfolding elsewhere.
Smaller countries across the region are increasingly investing in airport infrastructure, either by modernising existing terminals or constructing entirely new facilities.
Throughout the broader Middle East, governments are dedicating substantial resources to expanding airport capacity in order to meet growing passenger demand, enhance global connectivity and support wider economic reforms.
Oman
Oman achieved a milestone in 2019 with the opening of Muscat International’s new terminal, which increased the country’s passenger handling capacity to 20 million annually.
The government is now shifting its focus to regional airports, including the planned Musandam airport – an important component of Oman Vision 2040. This project aims to stimulate economic development in the Musandam region by enhancing logistics and promoting tourism.
In June, Oman’s Civil Aviation Authority invited firms to prequalify for the enabling works contract for Musandam airport. The project attracted strong interest, with more than 50 local and international companies expressing their intent to participate in the construction work.
Beyond physical infrastructure, Oman is also looking to modernise its aviation ecosystem. Plans are under way to expand the air navigation infrastructure and open the sector to private international investment through concessions for the management and operation of airports and related services.
These efforts align with the National Aviation Strategy 2030, unveiled in 2020, which aims to attract $3.6bn in investment for airport cities over two decades.
Kuwait
Kuwait International airport is undergoing a major redevelopment with the construction of Terminal 2, a project led by Turkish contractor Limak. The long-delayed $5.8bn development is now progressing steadily and is expected to be completed by the end of 2026.
Spanning over 700,000 square metres (sq m) and comprising five floors – including one underground level – the new terminal will significantly boost the airport’s capacity. Once the first phase is completed, it will be able to handle 25 million passengers annually, with capacity expected to increase to 50 million in later phases.
The terminal plays a central role in Kuwait’s ambition to become a regional transit hub and is a cornerstone of the country’s broader economic diversification efforts outlined in the New Kuwait 2035 strategy.
Qatar
Qatar marked a significant milestone in its aviation sector in February with the inauguration of Concourses D and E at Hamad International airport (HIA), boosting capacity to over 65 million passengers a year.
With the opening of these two new concourses, the HIA expansion project – launched in 2018 – is now complete. The expanded terminal spans more than 842,000 sq m and includes 17 new aircraft contact gates.
While high-profile projects have made headlines, a quieter but equally significant story is unfolding elsewhere
Bahrain
Bahrain completed a $1.1bn expansion of its international airport in 2021, more than doubling its annual passenger capacity to 14 million. The project included the construction of a new terminal, upgraded baggage handling systems and enhanced passenger services.
While smaller in scale compared to its regional counterparts, Bahrain International airport plays a crucial role in supporting the kingdom’s financial and tourism sectors.
Continued investment in airport infrastructure is anticipated, as Bahrain seeks to remain competitive in a region where aviation standards are rapidly evolving.
In October last year, Bahrain’s Minister of Transportation Mohammed Bin Thamer Al-Kaabi said that the kingdom is considering developing a new terminal at Bahrain International airport. Although discussions are still in the early stages, preliminary plans suggest substantial upgrades – including increased passenger capacity, automated check-in systems, enhanced security features and expanded retail areas.
Iraq
Iraq is gradually rebuilding its aviation sector after years of conflict and instability. In July, it issued a tender for a public-private partnership to rehabilitate, expand, finance, operate and maintain Baghdad International airport in a project valued between $400m and $600m.
The airport’s initial capacity is expected to be around 9 million passengers, with plans to increase to 15 million over time.
According to an official statement, Iraq’s Transport Ministry has prequalified 10 of the 14 international consortiums that expressed interest earlier this year to compete for the tender.
Morocco
Morocco, as part of its MD42bn ($4.3bn) plan to expand key airports ahead of the 2030 Fifa World Cup, has begun procuring contractors to expand its largest airport, Mohammed V International Airport in Casablanca.
In June, 28 local and international firms expressed interest in building the new terminal, which will cover approximately 450,000 sq m and is scheduled for completion before the World Cup, which Morocco will co-host with Portugal and Spain.
Morocco also plans to upgrade airports in Tangier, Marrakech, and Agadir, boosting their capacities to 7 million, 16 million and 7 million passengers annually, respectively. Additionally, a new terminal at Rabat-Sale airport will increase its capacity to 4 million passengers, while Fez airport’s capacity is set to rise to 5 million annually.
Main image: Morocco has started the procurement process to expand its largest airport, Mohammed V International airport in Casablanca, ahead of the 2030 Fifa World Cup
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Middle East invests in giant airports Colin Foreman
25 July 2025
The two largest airport construction projects in the world are in the GCC, according to UK data analytics firm GlobalData’s latest ranking of international airport projects.
Dubai’s Al-Maktoum International airport ranks first, followed by Riyadh’s King Salman International airport.
The scale and timing of the two projects underscores the region’s intention to remain a global travel hub.
Demand has rebounded strongly following the Covid-19 pandemic and data for 2024 shows that air traffic is nearing or exceeding pre-pandemic levels at many airports. These tailwinds have continued into 2025 and are expected to continue for many years to come.
Dubai pivots
In Dubai, the expansion of Al-Maktoum International airport, which is also known as Dubai World Central, is back on the agenda after a five-year hiatus. The expansion project was launched in 2014 and was put on hold as the emirate focused on delivering infrastructure for Expo 2020 and then dealt with the economic impact of the Covid-19 pandemic.
With a rebound in air travel and growing operational pressure at Dubai International airport (DXB), the project was relaunched in 2024.
Once complete, Al-Maktoum will cover an area of 70 square kilometres (sq km), which will make it five times larger than DXB. It will have five parallel runways, five terminal buildings and up to 400 aircraft gates. It is designed to eventually handle 260 million passengers and 12 million tonnes of cargo a year, making it the largest passenger airport in the world by capacity.
The government has said that operations will shift from DXB to Al-Maktoum within the next 10 years. The project is also driving housing and commercial development in the surrounding area, with plans to accommodate up to 1 million residents around the new airport zone.
Construction is already progressing. In May, Binladin Contracting Group won a AED1bn ($272m) contract for the second runway, and Abu Dhabi-based Tristar E&C is delivering enabling works for the terminal.
Dubai Aviation Engineering Projects (DAEP), the government entity managing the development, has also issued tenders for the first phase of construction, which is expected to be completed by 2032.
The initial phase includes five substructure packages covering tunnels, technical infrastructure and a seven-level West Terminal spanning 800,000 square metres. This terminal alone will have an annual capacity of 45 million passengers.
DAEP has also tendered a contract for the airport’s automated people mover system, which will operate beneath the apron and link 14 underground stations across the terminals and concourses. International firms including Alstom, Hitachi and CRRC are expected to bid.
Unlike in 2014, when Dubai had some time on its side, the need for expansion today is becoming increasingly urgent. While DXB remains the world’s busiest airport for international passengers and the second busiest overall with 92.3 million travellers in 2024, it operates with only two runways and is approaching its physical limits.
As Emirates begins flying smaller Airbus A350s with fewer seats than the A380s the company is replacing, the number of aircraft movements is expected to increase, further straining capacity. DXB already ranks among the world’s busiest airports for aircraft movements. Without additional runway infrastructure, future growth will be constrained.
Riyadh’s global ambitions
While Dubai expands to maintain its lead in aviation, Riyadh is seeking to establish itself as a global hub.
Backed by sovereign wealth vehicle the Public Investment Fund, the King Salman International airport project represents a central pillar of Saudi Arabia’s $100bn aviation and economic diversification strategy.
The airport will cover 57 sq km, integrating the existing King Khalid International airport and adding six parallel runways, several new terminals and a 12-square-kilometre mixed-use logistics and real estate zone.
By 2030, Riyadh aims for the airport to accommodate 120 million passengers annually, rising to 185 million by 2050. It will also target 3.5 million tonnes of cargo a year.
The airport will anchor the kingdom’s wider aviation strategy, which seeks to triple annual passenger traffic to 330 million, expand cargo throughput to 4.5 million tonnes and grow Saudi Arabia’s network to over 250 global destinations.
While Dubai expands to maintain its lead in aviation, Riyadh is seeking to establish itself as a global hub
The newly launched Riyadh Air will operate from the new hub, complementing Saudia and positioning the capital as a central node in global travel.
Contractors are already competing for major construction packages. The fourth runway package and a separate contract covering the Iconic Terminal and Terminal 6 for low-cost carriers are out to tender.
Several international firms have been appointed to design and delivery roles. Foster & Partners is leading the masterplan and terminal architecture, Jacobs is supporting runway and infrastructure design and Bechtel is delivering the terminal programme. Parsons has taken responsibility for airside and landside works and Mace is overseeing overall delivery management. Local firm Nera is handling the critical airspace design consultancy.
Both airports, along with other hubs and airport projects that are being developed in the region, will help the Gulf remain a key player in global aviation for decades to come.
Main photo: Artist’s impression of the phase two expansion of Dubai’s Al-Maktoum airport. Credit: Dubai Airports
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Gulf banks navigate turbulent times James Gavin
25 July 2025
Much can change in a year, as GCC banks are finding out. They face a sharply different environment in mid-2025 than they did at the same point last year. In 2024, GCC banks’ immediate challenge was the downward shift in interest rates dictated by the US Federal Reserve, prompting a drop in interest income and forcing lenders to secure other forms of revenue.
This year, the political and economic disruption wrought across much of the world has changed the calculus for regional lenders.
While lower interest income remains an ongoing challenge, a broader mix of issues requires attention, including tighter liquidity, higher cost of funds and the need to continue supporting domestic diversification agendas.
The good news for GCC banks is that, on the whole, the positives are outweighing the negatives.
According to Kamco Invest research, GCC banking sector bottom-line growth was steady in early 2025, with Q1 2025 witnessing expansion of 8.6% to reach $15.6bn, a record for that quarter.
This increase came despite a decline in net interest income of 1.7% in year-on year terms, and was mainly led by higher non-interest income, lower operating expenses and a decline in impaired loans.
Position of strength
Strongly performing Gulf economies over successive years have created favourable conditions for banks, offsetting the impact of lower interest rates.
“Throughout this period of higher oil prices, GCC banks were building their capital buffers because profitability was good,” says Redmond Ramsdale, head of Middle East bank ratings at Fitch Ratings.
“Asset quality in most of these countries has been improving. So the banks are in quite a good position with the buffers they have built.”
Strongly performing Gulf economies over successive years have created favourable conditions for banks, offsetting the impact of lower interest rates
Despite the economic volatility seen in the first half of 2025, Gulf banks have proved resilient, even if President Donald Trump’s tariffs remain a challenge for US trading partners globally, including those in the Gulf.
“Tariffs are likely to have limited direct impact on GCC banks. It’s more about what is the importance of tariffs on oil prices. Lower oil prices are negative for the GCC because oil is still the main component of government revenues – and that’s what effectively translates into lending or financing growth for the banks,” says Ramsdale.
Credit growth is holding up strongly, which in part reflects the resilience of economic diversification programmes in the GCC.
Demand for credit is also holding up, as is government spending – typically a key determinant of economic confidence, and a driver for non-oil GDP.
The consensus among analysts is that credit growth will remain in the high single-digits for the GCC as a whole, and will be still higher in Saudi Arabia.
“In Saudi Arabia we forecast that the loan growth will remain strong this year, and will be driven more by corporate lending as projects around Vision 2030 are being implemented — less so by mortgages,” says Mohamed Damak, senior director, financial services at S&P Global.
According to Damak, mortgages will continue to grow because there is still demand. “But the big story for Saudi banks is the recourse to external funding,” he says.
“They have been issuing debt on the international capital markets in order to mobilise liquidity to be able to continue to finance their growth, because deposit growth is not sufficient to finance all lending growth.”
This is the backdrop to the extensive issuance being seen in the kingdom and other Gulf markets. Saudi National Bank (SNB) completed the issuance of $1.25bn in Tier 2 US dollar capital notes in June, with order books exceeding $4bn.
It is not just Saudi banks that are in issuance mode. GCC banks have about $2.2bn in US dollar-denominated Additional Tier 1 (AT1) instruments with first call dates due in 2025, and a further $3.1bn in 2026, according to Fitch Ratings. This comes off a strong year for Gulf bank debt issuance in 2024, when $42bn of issuance was seen – the previous record was in 2020 with about $26bn.
First-half 2025 issuance stands at $38bn, suggesting this year is going to set a new record. Maturities valued at $16bn are due in 2026, with $13bn due in 2027, a further driver for banks to tap the debt capital market.
At least three Saudi lenders have issued AT1 dollar-denominated capital Islamic bonds (sukuk) this year as they have moved to take advantage of tighter spreads and strong investor demand.
Saudi banks – in line with previous years – are driving loan growth, with UAE lenders not far behind.
“Our forecast for credit growth in Saudi Arabia for this year is between 10% and 12%, which is still very strong growth, and the highest in the region. That is driving quite strong profitability, despite the fact that they are funding this growth with more expensive funding,” says Ramsdale.
The kingdom’s current and savings account deposits are not growing at anywhere near the pace that loans or financing is growing, notes Fitch, so banks are filling that with term deposits or external liabilities.
The higher reliance on foreign funding has led to tighter liquidity. “Loan growth is exceeding deposit growth, so banks need to issue,” says Ramsdale.
Another reason for issuance is the need for dollars, which are being used to fund major government projects, notably in Saudi Arabia, where about 40% of the GCC bank issuance is located.
Shrinking liquidity
The prospect of tightening liquidity, as deposits prove trickier to attract, is not a cause for undue concern. There are ample tools at the central bank’s disposal to manage the situation.
“The Saudi Arabian Monetary Agency still has a lot of [deposits from government-related entities] sitting in its accounts that can be deployed into the banking sector. If liquidity gets too tight, it can do so,” says Ramsdale.
Stress-testing exercises appear to bear this out. According to S&P Global, all GCC banking systems have enough liquidity to sustain funding outflows, with the exception of Qatar, where there is a shortfall of $9bn under its hypothetical stress scenario. This is due to the fact that Qatar starts with a higher external debt compared to all other regional countries.
This $9bn is something the authorities can easily absorb, however, as demonstrated by the strong track record of support.
S&P stress tested the banking systems on three metrics – the outflow of external debt, the potential outflows of local private sector deposits and the implication on the economy and on the asset quality indicators.
The ratings agency looked at the top 45 regional banks. Under the first scenario, the outflow of external debt, 16 of the banks would show losses of around $5bn in cumulative terms, says Damak.
For the second scenario, 26 out of the top 45 would be loss-making for a total amount of around $30bn.
“But now, when you compare the $30bn to how much profit these banks have made over the last year – about $60bn – it means that they have the capacity to absorb the problem without any significant impact on capitalisation,” says Damak.
UAE banks’ massive debt external asset position makes them fairly resilient to potential stress-related external capital outflows, notes Damak.
Big banks dominate
At the individual level, the region’s large ‘national champion’ banks continue to dominate banking systems. Some of these institutions have posted impressive early-year performances.
For example, Al-Rajhi Bank, the largest lender in the GCC by market capitalisation, reported a 34% year-on-year increase in net profit in Q1 2025. It is reaping the benefit of the kingdom’s surging credit demand. Booking healthy profits on the back of strong loan demand, from both corporate and consumer sectors, comes relatively easily in this context.
However, where loan growth is weaker, banks’ earning performances have been commensurately negatively affected.
Looking ahead, profitability is expected to be marginally down this year
For Qatar National Bank, which is considered the largest Qatari bank by assets, while Q1 net profit reached $1.2bn, this
was only up by a couple of percentage points compared to the same period last year, indicative of less robust credit growth in Qatar.“The largest banks in the GCC – the likes of SNB and Al-Rajhi in Saudi Arabia, First Abu Dhabi Bank and Emirates NBD in the UAE and National Bank of Kuwait and Kuwait Finance House in Kuwait – tend to have around 50%-60% of the total banking system, which gives them an advantage in terms of efficiency, delivery and market access,” says Ashraf Madani, a senior analyst at Moody’s Financial Institutions Group.
“These banks are highly rated in terms of their standalone and overall deposit ratings and we expect their advantage to continue.”
Looking ahead, profitability is expected to be marginally down this year, says Madani, reflecting some pressure on the net interest margins because of the lower rates since Q4 last year, and also the expectation that credit costs should normalise compared to the previous year.
One of the big plus-points for Gulf banks is the improvement in asset quality witnessed in the past year, suggesting that Gulf economies’ post-Covid recovery has helped reduce bad loans.
“We’re seeing non-performing loans heading in the right direction, trending lower, and that’s basically because of the strong performance of borrowers, and the denominator effect, whereby an increase in the overall size of the loans will lower overall ratio,” says Madani.
Other factors supportive of loan quality are regulatory changes in the UAE, which has allowed UAE banks to write off some of the legacy problem loans, another factor that is likely to move the headline non-performing loan ratio down.
Given the political and economic turbulence witnessed in the first half of the year, Gulf bank chiefs will not be minded to make rash predictions about future conditions. Even so, the resilience on display, and the healthy loan appetite, will likely boost confidence that lenders in the region can withstand further headwinds.
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Consultants shortlisted for new Egyptian railway Edward James
25 July 2025
Four European consulting groups have been shortlisted for a contract to provide project implementation support and construction supervision services for a new railway in Egypt, linking Robeiky with Belbeis via 10th of Ramadan.
France’s Systra, Italy’s Italferr, and two joint ventures comprising Germany’s DB E&C with France’s Egis and Germany’s SSF International with the local Ehaf will now be invited to bid for the contract by the project client, Egyptian National Railways (ENR).
The project, which has an estimated value of just under $200m, comprises the supply and installation of railway tracks, and signalling and telecommunication systems.
The new line will connect the 10th of Ramadan Dry Port project (DP10) to ENR’s main network and, in parallel, allow freight traffic from southern ports towards the north of the Nile delta to bypass the Cairo railway node and save time. It will also provide a railway link between Belbeis and DP10 for commuting traffic.
It includes seven stations: Robeiky, Industrial Zone 1, Industrial Zone 2, Kilometre 14, the 10th of Ramadan interchange station connecting to the Cairo–New Capital LRT network, DP10 and Belbeis.
The project alignment is divided into two sections. The first part of the railway line, with a length of 48 kilometres (km), connects the Robeiky and Belbeis stations.
The second part of the railway line is a 12km branch link from the main line junction to the border of the planned DP10 station, served by parking and a shunting yard.
Four competing contracting alliances are bidding for the construction works. They are:
- Alstom/Concrete Plus/Rowad Modern Engineering (France/local/local)
- Dhaka Bangladesh Group
- CBS Group/Orascom Construction (Spain/local)
- Hitachi/Mermec/Salcef/El-Hazek Construction (Japan/Italy/Italy/local)
The project is being financed with a €35m ($41m) loan from the European Bank for Reconstruction & Development (EBRD) and a €71m facility from Agence Française de Developpement (AFD). ENR will provide the remaining equity.
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First foreign firm takes ownership of Saudi football club Yasir Iqbal
25 July 2025
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Saudi Arabia’s Ministry of Sport, in collaboration with the National Centre for Privatisation & PPP (NCP), has announced the winning bidders of the rights to own and operate three sports clubs in the kingdom.
The agreement marks the first time a foreign investor has owned a Saudi football club, with the US-based investment firm Harburg Group winning the ownership rights of Al-Kholood football club.
The club competes in the Saudi Pro League and is based in the city of Ar-Rass, in the Al-Qassim province of the kingdom.
Riyadh-based firm Nojoom Al-Salam Holding will assume the ownership of Al-Zulfi club. The club is based in Al-Qassim province and competes in the Saudi First Division League, the second tier in the Saudi Arabian football league system.
Medina-based firm Awdah Al-Biladi & Sons acquired the ownership of Al-Ansar football club. The club is based in Medina and plays in the Saudi Second Division, the third tier of Saudi Arabia’s football league.
In April, MEED reported that the Ministry of Sport, in collaboration with the NCP, was expected to announce the winning bidders for owning and operating six sports clubs soon.
According to local media reports, the ministry received more than 22 offers for the acquisition of clubs, including bids from foreign companies.
The other clubs that were opened for privatisation include Alnahdah Sports Club (Dammam), Alokhdood Sports Club (Najran) and Alorobah Sports Club (Sakaka City).
In August last year, MEED reported that Riyadh was seeking investor interest in owning and operating six sports clubs in the kingdom.
The announcement followed a notice from the ministry in July that approval had been given for the privatisation of 14 sports clubs in the kingdom.
“The move is part of the ongoing implementation of the sports clubs’ investment and privatisation project launched by the Crown Prince, in line with the goals of Saudi Vision 2030. It also aims to provide opportunities for the private sector to participate in building and developing the sports sector, thereby benefiting national teams, clubs, fans and all sports practitioners,” NCP said in an official statement.
Saudi Arabia has major plans to develop its sports infrastructure. The kingdom will likely invest hundreds of billions of dollars in developing the required infrastructure to host the 2034 Fifa World Cup.
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