meed-logo

line1 line2 line3
SIGN IN / REGISTER

Mena economies living dangerously

27 December 2023

 

Gaza conflict puts the region on edge once again

Middle East and North Africa (Mena) economies enter 2024 in a state of flux. While most are well placed to continue their post-pandemic growth trajectory, albeit in the context of weaker oil sector growth, some states – Egypt and Tunisia notable among them — are under pressure to undertake painful reforms in order to elicit IMF funding packages.

Overall, hopes are high that growth in the Mena region will at least outpace the sluggish performance of the past year.  Policymakers across the region will also be looking to double down on the private sector dynamism that saw non-oil growth outpace hydrocarbons performances in 2023.

The overall rear-view mirror is not especially encouraging. The IMF’s Regional Economic Outlook has Mena real GDP slowing to 2 per cent in 2023 from 5.6 per cent in 2022, a decline attributed to the impact of lower oil production among exporters and tighter monetary policy conditions in the region’s emerging market and middle-income economies. Geopolitical tensions – not least the Gaza conflict – and natural disasters in Morocco and Libya have also weighed on regional economies. 

GDP growth

The World Bank estimates that in per capita terms, GDP growth across the region decreased from 4.3 per cent in 2022 to just 0.4 per cent in 2023. By the end of 2023, it says, only eight of 15 Mena economies will have returned to pre-pandemic real GDP per capita levels.

Much hinges on developments in the oil market. The Opec+ decision on 30 November to agree voluntary output reductions that will extend Saudi and Russian cuts of 1.3 million barrels a day (b/d), is designed to shore up prices, but it will come at a cost. 

Saudi Arabia’s GDP data for the third quarter of 2023 revealed the full impact of output restraint, as the economy contracted at its fastest rate since the pandemic. Saudi GDP notably declined by 3.9 per cent in the third quarter compared to the previous quarter – after the kingdom implemented an additional voluntary 1 million b/d oil output cut.

As a whole, GCC economic growth has been tepid, despite a resurgence in services hotspots such as the UAE, where retail and hospitality sectors have boomed. The World Bank’s Gulf Economic Update report, published in late November, sees GCC growth at just 1 per cent in 2023, although this is expected to rise to 3.6 per cent in 2024. 

Oil sector activity is expected to contract by 3.9 per cent in 2024 as a result of the recurrent Opec+ production cuts and global economic slowdown, according to Capital Economics. However, weaker oil sector activity will be compensated for by non-oil sectors, where growth is projected at a relatively healthy 3.9 per cent in 2024, supported by sustained private consumption, strategic fixed investments and accommodative fiscal policy.

“There has not been much GDP growth this year, but the non-oil economy has been surprisingly robust and resilient, despite the fact that the liquidity has not been as much of a driver as it was a year earlier,” says Jarmo Kotilaine, a regional economic expert. 

“Of course, the cost of capital has gone up and there have been some liquidity constraints. But we do have a lot of momentum in the non-oil economy.” 

In Saudi Arabia, beyond its robust real estate story, the ventures implemented under the national investment strategy are unfolding and semi-sovereign funds are playing a key role in ensuring continuity. “You are seeing more of these green energy projects across the region. It really has been a surprisingly positive story for the non-oil economy,” says Kotilaine.

Government spending

Fiscal policy will remain loose, at least among Mena oil exporters, whose revenues endow them with greater fiscal fire-power. 

Saudi Arabia’s 2024 pre-budget statement bakes in further budget deficits, with government spending for 2023 and 2024 expected to be 34 per cent and 32 per cent higher, respectively, than the finance ministry had projected in the 2022 budget.  This is not just higher spending on health, education and social welfare, but also marked increases in capital expenditure, including on the kingdom’s gigapojects. 

That luxury is not open to the likes of Bahrain and Oman, the former recording the highest public debt-to-GDP ratio in the region at 125 per cent in 2023. Those two Gulf states will need to maintain a closer watch on their fiscal positions in 2024. 

There are broader changes to fiscal policy taking place in the Gulf states, notes Kotilaine, some of which will be registered in 2024. “There are areas that the government will play a role in, but in a much more selective and focused manner. Much less of the overall story now hinges on government spending than it used to in the GCC,” he says.

For 2024, a consensus is emerging that the Mena region should see GDP growth of above 3 per cent. That is better than 2023, but well below the previous year and, warns the IMF, insufficient to be strong or inclusive enough to create jobs for the 100 million Arab youth who will reach working age in the next 10 years. 

The Mena region’s non-oil buoyancy at least offers hope that diversification will deliver more benefits to regional populations, reflecting the impact of structural reforms designed to improve the investment environment and make labour markets more flexible. 

“The labour market in the region continues to strengthen, with business confidence and hiring activity reverting to pre-pandemic levels,” says Safaa el-Tayeb el-Kogali, World Bank country director for the GCC. “In Saudi Arabia, private sector workforce has grown steadily, reaching 2.6 million in early 2023. This expansion coincides with overall increases in labour force participation, employment-to-population ratio, and a decrease in unemployment.”

El-Kogali adds that non-oil exports across the GCC region continue to lag, however. “While the substantial improvement in the external balances of the GCC over the past years is attributed to the exports of the oil sector, few countries in the region have also shown progress in non-oil merchandise exports. This requires close attention by policymakers to further diversify their exports portfolio by further promoting private sector development and competitiveness.”

Regional trade

There is a broader reshaping of the Gulf’s international trading and political relations, shifting away from close ties with the West to a broader alignment that includes Asian economies. The entry of Saudi Arabia, the UAE and Iran to the Brics group of emerging market nations, taking effect in 2024, is a sign of this process.

The decision of the Saudi central bank and People’s Bank of China in November 2023 to agree a local-currency swap deal worth about $7bn underscores the kingdom’s reduced reliance on the Western financial system and a greater openness to facilitating more Chinese investment.

“You want to be as multi-directional, as multi-modal as you can,” says Kotilaine. “For the Gulf states, it is almost like they are trying to transcend the old bloc politics. It is not about who your best friend is. They want to think of this in terms of a non-zero sum game, and that worked very well for them during the global financial crisis when they had to pivot from the West to the East.”

Near-term challenges

While long-term strategic repositioning will influence Mena economic policy-making in 2024, there will be near-term issues to grapple with. High up that list is the Gaza conflict, the wider regional impacts of which are still unknown. 

Most current baseline forecasts do not envisage a wider regional escalation, limiting the conflict’s impacts on regional economies. The initial spike in oil prices following the 7 October attacks dissipated fairly quickly. 

Egypt is the most exposed to a worsening of the situation in Gaza, sharing a land border with the territory. However, the Gaza crisis is not the only challenge facing the North African country 

Elections set for 10 December will grant President Abdelfattah al-Sisi another term in office, but his in-tray is bulging under a host of economic pressures. 

Inflation peaked at 41 per cent in June 2023. A currency devaluation is being urged, as a more flexible pound would offer a better chance of attracting much-needed capital inflows. 

The corollary is that it would have to be accompanied by an interest rate hike. Capital Economics sees a 200 basis point increase to 21.25 per cent as the most likely outcome, ratcheting up the pain on Egyptian businesses and households. 

A deal with the IMF would do much to settle Egyptian nerves, with a rescue plan worth $5bn understood to be in the offing. But Egypt has to do more to convince the fund that it is prepared to undertake meaningful fiscal reforms.  Privatisations of state assets, including Egypt Aluminum, will help.  

Other Mena economies will enjoy more leeway to chart their own economic path in 2024. Iraq has achieved greater political stability over the past year, and may stand a better chance of reforming its economy, although weaker oil prices will limit the heavily hydrocarbons-dominated economy’s room for manoeuvre. 

Jordan is another Mena economy that has managed to tame inflation. Like Egypt, however, the country is also heavily exposed to what happens in Gaza. 

Few could have predicted the bloody events that followed the 7 October attacks. Mena region economic strategists will be hoping that 2024 will not bring further surprises.

Can the Gulf build back better?

The GCC has done much to put itself on the global map through effective reputation building. But, notes regional economic expert Jarmo Kotilaine, the focus of policy will now have to change from building more to building better, making the existing infrastructure and systems operate with greater efficiency. 

Above all, the region will need dynamic and adaptable companies and an economically engaged workforce. 

“The reality is the GCC has a lot of capital committed to the old economy. There is the question of how much of that should be upgraded, or made to work better, because fundamentally, one of the region’s big challenges is that local economies have very low levels of productivity.”   

It is by upgrading what the GCC has, by incorporating technology and energy efficiency, that the region can make productivity growth a driver, he tells MEED.

“One area where GCC economies have started to make progress is in services: logistics, tourism, financial services. This is bringing money to the region,” he says. 

“We are also starting to see new potential export streams with things like green energy, and obviously green hydrogen.  But the Gulf states have to manufacture more, and they have to manufacture better.”

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11360413/main.gif
James Gavin

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Necessity is the mother of invention for Kuwaiti lenders

    6 August 2026

     

    If 2025 was marked by the advent of reform in the shape of public debt and mortgage laws, 2026 has been a year of resilience in the face of sharp shifts in the operating environment.

    Like their peers across the GCC, Kuwait’s banks have stood out this year for their crisis preparedness. With Kuwait facing sustained attacks from Iran – testing a hydrocarbons-based economy that is uniquely vulnerable to such shocks – banks are focusing on maintaining durability under especially challenging conditions.

    The sector entered 2026 in a relatively strong position. As of March 2026 – one month into the US-Israeli campaign against Iran – the non-performing loan (NPL) ratio stood at a creditable 1.7%. A capital adequacy ratio of 17.5% in Q1 is another sign of resilience, underscoring banks’ capacity to absorb unexpected losses.

    Kuwaiti banks’ reserve coverage stands at 223% of problem loans, one of the highest levels of loan-loss allowance coverage for Stage 3 exposures in the region. This is in large part due to the Central Bank of Kuwait’s (CBK’s) strict regulatory requirements.

    Overall, banks have strong capitalisation, solid liquidity, high loan loss-absorption buffers and sound asset quality. That mix provides confidence that the banking sector can continue to support the economy in difficult circumstances.

    Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required
    Abdulla Al-Hammadi, Moody’s

    Bank dominance

    Banks also remain central to Kuwait’s economy. As the Washington-based IMF has noted, financial intermediation is overwhelmingly bank-based, with domestic currency bond and equity markets underdeveloped by emerging-market standards.

    “Kuwait has retained significant sovereign financial strength. There are large fiscal buffers, there is the existential hydrocarbon wealth, and there is a long track record of supporting the banking sector when required,” says Abdulla Al-Hammadi, an analyst at Moody’s.

    Bank assets reached 250% of GDP in 2024 – among the highest in the GCC, according to the IMF. This is supported by strong balance sheets, high liquidity and a large Islamic finance segment. Kuwait Finance House, Boubyan Bank, Kuwait International Bank and Warba Bank – the four main Islamic lenders – together account for KD53bn ($172bn), or 51% of total banking sector assets.

    Early 2026 performance metrics show a solid rise in assets at listed Kuwaiti banks, growing by 12.5% year-on-year to KD130.82bn ($366.4bn) in Q1. Net profits increased by a smaller margin, 1.1%, to KD382.96m ($1.07bn) in the same quarter, according to KPMG.

    National Bank of Kuwait (NBK), the largest bank by assets, reported net profit of KD324.8m ($1.06bn) for the first half of 2026, a 3% year-on-year increase. Despite the impact of the conflict, the second quarter saw profits rise 4.5% to KD181.2m ($588.4m).

    Ratings support

    Ratings agencies have retained their confidence in Kuwaiti banks. In a rating action announced on 18 June, Moody’s affirmed the long-term deposit ratings of eight Kuwaiti banks, reflecting their resilient credit profiles supported by strong capital, provisioning reserves and liquidity buffers.

    Under Moody’s central scenario – which assumes a prolonged disruption to the Strait of Hormuz through autumn and persistently high and volatile energy prices – the expected deterioration in operating conditions remains within the absorption capacity of these banks’ baseline credit assessments.

    Kuwait’s strong sovereign ratings and high level of system support provide additional comfort. Government financial assets are estimated at more than 475% of GDP, while the debt burden was around 19% of GDP as of March 2026 – factors that underpin the government’s capacity to support the banking system in the event of stress.

    Nor is Kuwait at particular risk of external funding outflows. According to S&P Global, Kuwait has a comfortable net external asset position that mitigates such risks.

    “Depositor confidence has remained stable. The banks continue to access international interbank markets,” says Al-Hammadi. “Their liquidity buffers will support their ability to continue lending and absorb any potential shock.”

    Regulatory response

    Regulatory supervision is another core strength. The CBK has a reputation for hands-on oversight of the banking sector. In March, it rolled out a stimulus package to encourage banks to lend as the Iran conflict buffeted the region. The measures included a temporary easing of macroprudential requirements, with the minimum liquidity coverage ratio and net stable funding ratio reduced from 100% to 80%. The minimum regulatory ratio was cut from 18% to 15%.

    These measures appear to have had the intended effect. According to NBK’s research arm, domestic credit growth picked up in May, rising by half a percentage point over the previous month to 6.7% in year-on-year terms. Signs of stronger business lending, with gains across services, trade and real estate, will have been particularly welcome.

    “Many Kuwaiti banks have concentrated their lending activity around the Kuwait economy,” says Al-Hammadi. “Overall GDP is under pressure given recent developments in the hydrocarbon sector. It’s still an oil-driven economy, but if you look at non-oil activity, it has continued to benefit from government investment.”

    Credit growth will be supported by improving economic sentiment, so long as deposit growth keeps pace. However, lending is unlikely to match previous years’ levels.

    “Our expectation is that lending growth will drop, given what is happening in the macroeconomic environment. Growth could be a bit slower compared to previous years,” says Al-Hammadi.

    The CBK has urged local banks to be flexible towards customers, although anecdotal evidence suggests greater caution, including tighter personal loan limits.

    Reforms, including the mortgage and housing law, provide an additional opportunity for Kuwaiti banks to support broader growth. The Real Estate Financing Law permits banks to offer supported loans under which the state covers interest payments via the Kuwait Credit Bank, while borrowers repay only the principal.

    Although hydrocarbon-sector growth will be negatively impacted by events in the Gulf this year, banks should be able to secure growth by focusing on the non-hydrocarbon economy.

    “We see growth driven by the non-oil economy and some of the project finance opportunities, which will benefit from the banking sector’s capital and liquidity position. It places the banks in the right place to grab this opportunity,” says Al-Hammadi.

    MEED’s September 2026 report on Kuwait also includes:

    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > CONSTRUCTION: Kuwait construction holds up despite regional strife

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18160720/main.gif
    James Gavin
  • PDO floats tender for major flare gas monetisation scheme

    6 August 2026

     

    Petroleum Development Oman (PDO) has launched a major scheme to monetise gas flared across two of its largest hydrocarbon-producing zones in the sultanate. The initiative aligns with PDO’s commitment to achieve zero routine flaring and net-zero methane emissions by 2030, on the way to attaining full carbon neutrality by 2050.

    The scheme involves the monetisation of flare gas and gas associated with oil production in the Qarn Alam cluster and the Fahud field, both of which fall under PDO’s northern portfolio within its main hydrocarbon concession area, Block 6.

    The scope of the flare gas and associated gas monetisation scheme has been divided into two parts. Bundle A involves the offtake of associated gas from the Wadi Umayri oil field development, located in the Qarn Alam cluster. Bundle B relates to the monetisation of flare gas and natural gas liquids (NGLs) from the Fahud North Oman Crude Stabilisation (FNOCS) facility, located at the Fahud field.

    PDO issued the request for proposal document for the flare gas monetisation scheme on 21 July, inviting local and international developers to submit technical and commercial proposals by 25 August.

    Developers have the option of submitting proposals for the complete design, financing, construction, operation and maintenance of offtake or monetisation facilities for one or both bundles. PDO will evaluate proposals for each bundle separately and award contracts independently.

    PDO is the operator of Block 6, Oman’s largest and most prolific hydrocarbon concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields, with PDO producing approximately 680,000 barrels a day (b/d) of oil and condensate from those fields.

    The Omani government holds a 60% stake in PDO through Energy Development Oman (EDO). The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).

    Scope of Bundle A

    The Wadi Umayri field development, located within the Qarn Alam cluster, produces crude oil from the Lekhwair, Shuaiba and Sudair reservoirs. A permanent processing facility is planned to come onstream by the first quarter of 2030.

    As a by-product of oil production, the development will generate associated gas at an initial rate of approximately 60,000 to 68,000 standard cubic metres a day (cm/d), declining over field life.

    PDO will install a sweetening unit as part of its own scope to meet Oman’s regulatory requirement of all gas with sulphur dioxide (SO₂) concentrations above 0.035 g/m³ to be treated prior to any disposal.

    At the delivery point (battery limit flange), the gas made available to the future developer will consist of a blended stream from two sources: approximately 80% sweetened separator gas and 20% flashed gas recovered from atmospheric storage tanks. This blended gas composition forms the basis for downstream utilisation, processing, or disposal considerations under the development concept.

    The duration of the contract to be awarded by PDO to the developer is 10 years.

    The scope of work on Bundle A is split between PDO and the developer, and covers the following:

    PDO tie-in scope:

    • Tie-in works from the production separator and oil tank to the defined delivery point (flange at battery limit), including piping, metering and ESD/control valves.
    • Sweetening unit upstream of the delivery point to treat the main gas stream and meet regulatory SO₂ limits for any non-routine flaring events.
    • Allocate a designated plot plan adjacent to the permanent facility, at no cost to the developer.
    • The gas delivery point is defined as the flange at PDO’s battery limit of the Wadi Umayri permanent facility. Gas will be supplied as-is at approximately 1.00 bar, with PDO bearing no obligation to provide gas at higher pressure or low hydrogen sulphide (H₂S) concentration.

    Developer scope:

    • Design, build, maintain and operate the gas monetisation system outside PDO’s battery limit.
    • Provide all equipment, infrastructure, compression, conditioning and downstream handling from the delivery point onward.
    • Bear full capital expenditure (capex), operational expenditure (opex), leases, health, safety and environment (HSE), and regulatory responsibilities for all developer scope.
    • Self-generation of all required utilities, such as power, water and chemicals.
    • Handling, treatment and disposal of all product and by-product streams.
    Scope of Bundle B

    FNOCS is a centralised processing facility at the Fahud field. The facility processes associated hydrocarbons from producing fields in PDO’s northern portfolio, generating two primary streams: produced NGL stream at FNOCS is blended into the Main Oil Line (MOL), while the produced fuel gas is supplied to the Fahud power plant.

    The continued flaring of NGLs at FNOCS is an interim risk-mitigation measure and not a sustainable operating solution. To identify a viable long-term outlet for these volumes, and to meet PDO’s broader strategy to eliminate flaring and comply with its zero routine flaring commitment by 2030, the company is seeking third-party developers to monetise hydrocarbon streams currently being flared at FNOCS.

    PDO’s target is to secure an attractive commercial structure to stop flaring by offering two independently proposed operating options:

    Option 1 – Monetise the flare gas stream, upstream of main gas compressor: Take the currently flared gas, at an output rate of 90,000 standard cm/d, as-is in the current interim operating mode. Developer to design, build and operate a gas monetisation system outside PDO’s battery limit. This option has the highest zero routine flaring compliance impact and eliminates the need for re-operating the main gas compressor and its associated equipment.

    Option 2 – Monetise NGL + fuel gas: Restart the main gas compressor and stabiliser to separate NGL and fuel gas streams for sale. Vendor takes NGL (downstream of stabiliser), at a current rate of 106,000 standard cm/d and fuel gas (upstream of Fahud power plant), at a current rate of 44,000 standard cm/d, through a combined commercial structure.

    The duration of the contract to be awarded by PDO to the developer for Bundle B is five years, with the proposed facility to come onstream by the first quarter of 2029.

    The scope of work on Bundle B is also split between PDO and the developer, and covers the following:

    PDO tie-in scope:

    Approximately 200 metres of piping to FNOCS fence, including control/ESD/relief valves and a flowmeter.

    Allocate a designated plot plan approximately 4km from the existing FNOCS facility for the developer’s monetisation system.

    • The delivery point for option 1 is defined as the flange at FNOCS’s fence, upstream of the main gas compressor. The delivery points for option 2 are: (i) the NGL outlet downstream of the stabiliser, and (ii) the fuel gas outlet upstream of the Fahud power plant. Streams from both options will be supplied as-is at approximately 1.00 bar, with PDO bearing no obligation to provide gas at higher pressure or low H₂S concentration.

    Developer scope:

    • Design, build, maintain and operate the gas monetisation system outside PDO’s battery limit.
    • Provide all equipment, infrastructure, compression, conditioning and downstream handling from the delivery point onward.
    • Bear full capital expenditure (capex), operational expenditure (opex), leases, health, safety and environment (HSE), and regulatory responsibilities for all developer scope.
    • Self-generation of all required utilities, such as power, water,and chemicals.
    • Handling, treatment and disposal of all product and by-product streams.

    PDO has been striving to curb, and eventually end, flaring across its operations for several years, as part of its own targets, as well as in alignment with the environmental sustainability framework under Oman Vision 2040.

    In May last year, PDO initiated a flare gas recovery project at the Zulaiyah station in Hazar South in partnership with Hungary-based Enerhash, which aims to convert flare gas into a sustainable energy source through modular digital mining infrastructure.

    Enerhash’s technology powers containerised data centres directly with flare gas, offering a decentralised solution suitable for remote oil fields.

    The project is designed to avoid around 25,000 tonnes a year of carbon-dioxide-equivalent emissions, and builds on PDO’s earlier South AP flare recovery project, which sought vendors to recover gas from atmospheric dehydration tanks across sites such as Bahja, Rima, Amal, Marmul and Nimr.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18157702/main4946.jpg
    Indrajit Sen
  • Sabic completes $450m divestment of thermoplastics business

    6 August 2026

    Saudi Basic Industries Corporation (Sabic) has completed a transaction to divest its engineering thermoplastics business in the Americas and Europe to German venture capital and private equity firm Mutares, for an enterprise value of $450m.

    Sabic’s Americas and Europe engineering thermoplastics business produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene resins and compounds, and operates manufacturing sites in Mt Vernon, Bay St Louis and Burkville in the US; Ottawa, Canada; Tampico, Mexico; Campinas, Brazil; Cartagena, Spain; and Bergen op Zoom, the Netherlands.

    The divestment process was initiated by Sabic in January this year and marks a significant milestone in the company’s broader portfolio optimisation programme.

    “The transaction supports Sabic’s continued focus on exiting structurally underperforming assets, reducing cash losses, improving return on capital employed and maximising long-term shareholder value,” the Saudi chemicals giant said.

    The divested business reported an operating loss of approximately $498m for full-year 2025, and approximately $173m for the first half of this year.

    On a pro forma basis, the carve-out of the engineering thermoplastics business improved Sabic’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin by approximately 130-140 basis points, “reflecting the positive impact of the transaction on the company’s overall profitability and portfolio quality”.

    In addition to agreeing the sale of its engineering thermoplastics business in January, Sabic also began a process to divest its European petrochemicals business to Aequita for an estimated enterprise value of $500m.

    Aequita is a Munich-based venture capital and private equity firm.

    Sabic’s European petrochemicals business produces and markets ethylene, propylene, low- and high-density polyethylene, polypropylene and value-added polymer compounds, and operates manufacturing sites in Teesside, the UK; Geleen, the Netherlands; Gelsenkirchen, Germany; and Genk, Belgium.

    Q2 2026 financial results

    Sabic reported a net loss of $100m for the second quarter of 2026, which it attributed to the impact of the Iran-US regional conflict on its business.

    The company had only returned to profit in the first quarter, registering a net income of $3.52m, after posting a full-year 2025 loss of $6.87bn.

    The Saudi petrochemicals giant also said Q2 2026 revenue fell 5% year-on-year to $6.62bn.

    Sabic posted adjusted Ebitda of $900m for the three months to 30 June, a drop of 18% compared to the previous quarter.

    Adjusted earnings before interest and taxes in Q2 also fell by 72% quarter-on-quarter to $110m, while adjusted earnings per share stood at $0.03.

    Saudi Exchange-listed Sabic said its net debt position remained largely unchanged at $730m at the end of June, compared with $740m at the end of March.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18153251/main4445.jpg
    Indrajit Sen
  • UAE leads Mena project pipeline recovery

    6 August 2026

    Register for MEED’s 14-day trial access 

    The Middle East and North Africa’s construction project pipeline strengthened in June 2026, recovering some of the momentum lost earlier in the year as the effects of the Israel-Iran conflict continued to work through regional project markets.

    GlobalData’s Construction Projects Momentum Index (CPMI) for the Mena region rose to 0.84 in June, up 5% from 0.80 in May, leaving the region third globally behind South Asia and Sub-Saharan Africa. The three-month moving average held at 0.95, unchanged from May.

    The recovery was led by execution-stage activity, where the score rose to 1.18 in June from 1.06 in May. Pre-execution momentum, however, continued to soften, falling to 0.68 from 0.73. The pre-execution stage captures project planning, design development and procurement preparation, and a sustained decline there can point to a thinning of the future pipeline even when near-term execution holds up.

    Infrastructure drove the sector-level gains, with momentum rising sharply to 1.03 in June from 0.25 in May, the largest increase among the region’s sectors. Industrial momentum rose to 0.78 from 0.40. Residential activity remained elevated at 1.17, easing only marginally from 1.22.

    The gains were partly offset by a steep pullback in institutional activity, where momentum fell to 0.45 in June from 1.72 in May, the largest decline of any sector. Commercial and leisure momentum eased to 0.88 from 1.13, and energy and utilities to 0.59 from 0.82.

    The UAE posted the region’s highest score in June at 1.52, up from 1.16 in May. Algeria rose to 1.26 from 0.68, and Kuwait recovered to 0.76 from 0.26. Egypt reached 1.36, Oman held at 0.87, Qatar rose to 0.86 and Iran eased to 0.81.

    Saudi Arabia was the main exception among the larger markets, with its score falling to 0.31 in June from 1.16 in May. GlobalData linked the decline to procurement disruption on renewable energy projects under the Public Investment Fund’s giga developments and to the Najran-Asir-Jizan direct road, which faced consecutive bidding delays and consortium withdrawals.

    Israel recovered to 0.65 in June from -1.66 in May, having recorded the region’s weakest scores through the earlier phase of the conflict.

    Whether the June recovery is sustained will depend on the direction of pre-execution activity, which continued to weaken even as execution-stage momentum firmed.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18153255/main.jpg
    Colin Foreman
  • Mubadala backs Moove in $250m funding round

    6 August 2026

    UAE-headquartered mobility company Moove has raised $250m in a Series C funding round led by Abu Dhabi’s Mubadala Investment Company, giving the company a valuation of $2.1bn.

    The round was co-led by Woven Capital, the growth fund of Japan’s Toyota, and by Ion Pacific. It also brought in BlueCrest Capital Management and Sona Capital, alongside existing backers including BlackRock, Japan’s MUFG, Franklin Templeton, Uber and the Ontario Power Generation Pension Plan.

    Moove said the funding will support the expansion of its autonomous vehicle business, including fleet ownership and what it terms robotics-first depot infrastructure, or “Nests”, where autonomous fleets are charged, serviced, maintained and orchestrated. The company said the funds will also support new market launches.

    The company expects to grow its autonomous vehicle workforce by more than 220% by the end of the year, increasing from about 150 employees to about 500.

    Founded in 2020 and headquartered in the UAE, Moove finances, owns and operates mobility assets for ride-hailing platforms. It employs 3,300 people and operates about 42,000 vehicles across 29 cities in 13 countries, and has grown to $420m in annual recurring revenue. It has expanded through organic growth and acquisitions, including Kovi in Brazil and Tokyo Taxi in Japan.

    Moove is the largest global fleet partner of ride-hailing company Uber. Through a partnership with Waymo, the autonomous driving unit of US technology group Alphabet, it operates autonomous vehicle fleets in Phoenix and Miami in the US, with operations also planned in London.

    Mubadala first invested in Moove three years ago. The Series C round marks its continued backing of the company as it moves into autonomous fleet operations.

    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18151593/main.jpg
    Colin Foreman