GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024
GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024/node/2610487/business-economy
GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024
Real GDP across the GCC rose 2.4 percent in the final three months of 2024. Shutterstock
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Updated 11 sec ago
Nadin Hassan
GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024
Non‑oil activities accounted for% of region’s GDP at constant prices
Oil activities contributed 29.4%
Updated 11 sec ago
Nadin Hassan
RIYADH: The gross domestic product of Gulf Cooperation Council countries rose 3.3 percent at constant prices to $456.3 billion by the end of 2024, according to a new report.
Non‑oil activities accounted for 70.6 percent of the region’s GDP at constant prices in the final quarter, while oil activities contributed 29.4 percent, Oman News Agency reported, citing the Gulf Statistical Center.
“The contribution of non‑oil activities to the GCC GDP at constant prices reached 70.6 percent by the end of the fourth quarter of 2024,” ONA said.
The GDP growth aligns with broader trends across the Gulf, where nominal GDP reached $587.8 billion, growing 1.5 percent year on year, with non-oil sectors contributing 77.9 percent of the total growth.
Qatar recorded the highest real GDP increase at 4.5 percent, followed by the UAE at 3.6 percent, and at 2.8 percent, highlighting non-oil expansion as the main driver across the bloc.
Real GDP across the GCC rose 2.4 percent, with non‑oil GDP expanding by 3.7 percent and oil GDP contracting by 0.9 percent due to voluntary OPEC+ production cuts.
Non‑oil sectors such as manufacturing, wholesale and retail trade, construction, finance, real estate, and public administration collectively underpinned this growth, with manufacturing alone contributing 12.5 percent and retail trade nearly 9.9 percent of nominal GDP.
’s economy grew 1.3 percent, with fourth‑quarter real growth of 4.4 percent compared to the same period in 2023. Non‑oil activities grew 4.6 percent, outpacing a 4.5 percent contraction in oil output as government spending increased by 2.6 percent, Reuters reported.
Strategic programs like the National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to non‑oil GDP in 2024, representing 39 percent of the nation’s non‑oil output, with overall non‑oil activities accounting for 55 percent of total GDP.
The GCC’s pivot away from hydrocarbon dependence is supported by major investments in tourism, logistics, manufacturing, and finance, combined with regulatory reforms and infrastructure expansion.
National reforms such as Saudi Vision 2030, the UAE’s Economic Vision, Qatar’s National Vision 2030, and Oman’s Vision 2040 are all central to this shift.
Azerbaijan to export 1.2bn cubic meters of gas to Syria annually via Turkiye
Updated 18 sec ago
REEM WALID
RIYADH: Azerbaijan will begin exporting 1.2 billion cubic meters of natural gas annually to Syria through Turkiye, marking a shift in regional energy cooperation and underscoring Ankara’s deepening role in Syrian reconstruction efforts.
The gas will be sourced from the Shah Deniz field in the Caspian Sea, operated by a BP-led consortium, and delivered through a pipeline connecting Turkiye and Syria, according to SOCAR Vice President Elshad Nasirov, speaking at a ceremony in the southern Turkish city of Kilis near the Syrian border.
The move follows high-level agreements earlier this year between Azerbaijan’s President Ilham Aliyev and Syria’s new President Ahmad Al-Sharaa, said Azerbaijan’s Economy Minister Mikayil Jabbarov, as reported by Reuters.
The agreement comes as Turkiye pivots from earlier support for Syrian opposition groups toward rebuilding ties with the Damascus government. Turkish firms in construction, logistics, and manufacturing are positioning themselves to play a lead role in Syria’s reconstruction, with damage estimates nearing $1 trillion, according to UN assessments.
“By launching gas exports to Syria, Azerbaijan has demonstrated that it is capable of exporting gas not only to the West, but also to the East and the South,” Reuters cited him as saying at the event.
Syrian Energy Minister Mohammad Al-Bashir said the gas supply would enable an additional four hours of electricity per day in several conflict-affected areas by boosting generation capacity by around 750 megawatts.
Turkish Energy Minister Alparslan Bayraktar noted that the agreement initially targets daily deliveries of 6 million cubic meters, equivalent to the stated 1.2 bcm annually, with potential expansion to 2 bcm per year in the first phase. The gas will help restart power plants in Syria with a combined capacity of 1,200 MW.
While the full volume is expected to reach 6 million cubic meters per day, Al-Bashir stated that the initial phase will commence with 3.4 million cubic meters daily. He emphasized that the supplies would directly support energy recovery in areas hardest hit by years of conflict.
In a joint press conference in May, Bayraktar said the deal could eventually deliver 2 bcm per year, supporting the generation of up to 1,300 MW of electricity.
Shareholders owning company shares will receive a dividend of SR1.50 per share
Move aims to reassure investors of consistent returns and signals sector-wide stability
Updated 52 min 37 sec ago
Nour El-Shaeri
RIYADH: Chemicals production company Saudi Basic Industries Corp. announced the distribution of interim cash dividends amounting to SR4.5 billion ($1.19 billion) for the first half of the year.
Shareholders owning company shares as of the eligibility date of Aug. 19 will receive a dividend of SR1.50 per share, representing 15 percent of the unit’s par value.
The distribution is scheduled for Sept. 9, as SABIC emphasized its commitment to distribute competitive dividends in the long term despite the challenges facing the global petrochemical markets.
SABIC’s decision, despite reporting quarterly losses, underscores its financial resilience and confidence in the long-term strength of the sector.
The move aims to reassure investors of consistent returns and signals sector-wide stability, influencing peers across .
By balancing shareholder payouts with strategic reinvestment, SABIC reinforces its commitment to economic diversification and sustainable growth, aligning with broader national objectives to attract foreign capital and bolster market confidence during global uncertainties.
“Amid ongoing market challenges in the chemical industry, we took a disciplined decision to adjust the dividend in line with current conditions,” said SABIC CEO Abdulrahman Al-Fageeh.
“We remain firmly committed to a balanced capital allocation approach, ensuring competitive dividend distributions across the cycle while supporting long-term value creation,” he added.
Meanwhile, SABIC reported several operational achievements for the second quarter of the year.
The company was recognized at the seventh King Abdulaziz Quality Award ceremony, where three of its affiliates — Sharq, Gas, and Ibn Zahr — secured gold, silver, and bronze awards, respectively, for their excellence in operational performance, innovation, sustainability practices, and product efficiency.
SABIC was also honored with the Best Polymer Producers Award in the Linear Low Density Polyethylene category by the Polymers for Europe Alliance and the European Plastics Converters Association.
We have just released an executive summary of our Integrated Annual Report 2024, summarising our key financial and operational highlights in 2024.
— SABIC I سابك (@SABIC)
SABIC received the Excellent Collaboration Award for 2024 from UK-based DENSO Corp., recognizing its contributions to sustainable automotive solutions, particularly through innovations in bio-based and recycled polypropylene materials.
SABIC is also reviewing strategic options for its subsidiary, National Industrial Gases Co., including the possibility of an initial public offering, as part of efforts to streamline its portfolio and sharpen its focus on core petrochemical operations.
Al-Fageeh said the evaluation aligns with SABIC’s strategy to unlock shareholder value and adhere to global best practices in asset optimization within the petrochemical industry.
The company is also progressing with key expansion projects, including the MTBE facility in Jubail, which has reached over 95 percent completion and is set to commence trial operations in the third quarter.
Additionally, SABIC introduced 58 new products in the first half of the year, including an innovative platform designed for high-performance thermoplastics applications to replace traditional materials, reduce costs, and enhance design flexibility across sectors like automotive, energy, and infrastructure.
SABIC continued to advance its digital transformation initiatives, deploying over 490 artificial intelligence models across its manufacturing operations to enhance energy efficiency, feedstock planning, and emissions reduction.
The company also introduced its artificial intelligence guidelines to ensure a structured and responsible deployment of AI technologies across its global operations.
Despite a resilient revenue performance, SABIC’s financial results for the quarter reflected significant pressures.
Quarterly sales reached SR35.57 billion, down by 0.4 percent compared to the same period last year but up 2.8 percent sequentially.
The company maintained steady sales volumes, although lower average selling prices impacted profitability.
Gross profit for the quarter fell to SR4.42 billion, down 38.5 percent year-over-year, while operational losses widened to SR1.88 billion.
The company reported a net loss of SR4.07 billion, compared to a net income of SR2.18 billion in the same quarter last year.
The loss was attributed to impairment charges and provisions of SR3.78 billion related to the closure of a cracker facility in Teesside, UK, and lower contributions from associates and joint ventures, particularly in Europe.
SABIC incurred a SR517 million increase in finance costs driven by the fair valuation of derivative equity instruments and a SR284 million zakat expense.
For the first half of 2025, SABIC’s revenue grew by 3 percent year-over-year to SR70.16 billion, while net losses reached SR5.28 billion, compared to a net profit of SR2.43 billion in the same period of the previous year.
The company introduced adjusted financial metrics from the second quarter, reporting an adjusted earnings before interest, taxes, depreciation, and amortization of SR5.22 billion, a 40 percent increase from the previous quarter, resulting in an EBITDA margin of 15 percent.
Adjusted income from operations improved to SR1.94 billion from SR0.49 billion in the first quarter, while adjusted net income reached SR0.48 billion compared to an adjusted net loss of SR0.07 billion in the prior quarter.
Looking forward, SABIC reiterated its focus on long-term value creation through operational excellence, transformation, and selective growth.
The company also maintained its disciplined approach to capital investment, with full-year expenditure guidance projected in the range of $3 to $3.5 billion.
As of 12:25 p.m. Saudi time, SABIC’s share price had declined by 1.65 percent during intraday trading.
Commercial real estate prices recorded an annual increase of 11.7%
Residential land prices recorded 0.2% growth, apartment prices decreased by 0.7%
Updated 49 min 14 sec ago
Nirmal Narayanan
RIYADH: ’s real estate market maintained its steady growth in the second quarter of the year, with overall property prices in the Kingdom witnessing a 3.2 percent year-on-year rise, official data showed.
Commercial real estate prices recorded an annual increase of 11.7 percent in the second quarter, while expenses for residential properties saw a marginal rise of 0.4 percent, according to the latest report by the Kingdom’s General Authority for Statistics.
Strengthening the real estate sector is one of the crucial goals outlined in ’s Vision 2030 agenda, as the country continues to diversify its economy away from oil and position itself as a global business and tourist destination.
The Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
“Data indicates that commercial real estate prices recorded an annual increase of 11.7 percent in the second quarter of 2025, compared to the same quarter of the previous year. The sector accounts for 25.4 percent of the index,” said GASTAT.
“This increase is associated with a 12.7 percent rise in commercial land plot prices, which represent 22.8 percent of the index,” it added.
Commercial building prices witnessed a year-on-year rise of 2.7 percent in the second quarter, while shop and gallery prices rose by 4.1 percent, the authority said.
In June, global real estate consultancy Knight Frank also underscored the growth of ’s commercial real estate sector. It said rents for Grade A office spaces in Riyadh reached SR2,700 ($719.95) per sq. meter by the end of the first quarter, representing a rise of 23 percent compared to the same period in 2024.
publishes the Real Estate Price Index for Q2 of 2025
— الهيئة العامة للإحصاء (@Stats_Saudi)
Knight Frank added that government-led initiatives, including the regional headquarters program, are driving the expansion of the commercial real estate sector in the Kingdom.
’s regional headquarters program offers benefits to international firms, including a 30-year exemption from corporate income tax, a waiver of withholding tax on headquarters activities, and discounts and support services.
GASTAT said residential land prices recorded an annual growth rate of 0.2 percent, while villa and residential floor prices rose by 3.2 percent and 1.5 percent, respectively.
Apartment prices decreased by 0.7 percent in the second quarter, compared to the same period in the previous year.
Quarterly comparison
According to GASTAT, ’s real estate price index increased by 0.1 percent in the second quarter, compared to the previous three months.
The authority said the growth was driven by a 7.9 percent rise in commercial real estate prices, including an 8.6 percent increase in commercial land plot prices and a 3 percent rise in building prices.
Agricultural sector prices increased by 1.7 percent quarter on quarter, in line with a 1.7 percent rise in agricultural land prices.
The annual rate of change of the real estate price index slowed in the second quarter of this year compared to the first quarter, due to slower growth in the residential sector.
“The real estate price index in recorded an annual rate of change of 3.2 percent in the second quarter of 2025, compared to 4.3 percent in the first quarter of the same year. This change is associated with slower growth in the residential sector, which has the highest relative weight in the index,” said the authority.
The report added that residential real estate prices declined by 2.6 percent in the second quarter compared to the previous three months.
GASTAT said residential land prices decreased by 4 percent, while expenses for apartments and residential floors dropped by 1.2 percent and 0.9 percent, respectively.
Villa prices rose by 1.8 percent in the second quarter compared to the first quarter.
In April, a report released by S&P Global said ’s retail real estate market is poised to increase in the near term, driven by population growth, expanding tourism, and economic diversification efforts under the Vision 2030 initiative.
The credit rating agency added that ongoing mega-projects and the expansion of international brands are expected to propel further demand for retail space across the Kingdom.
Regional trends
GASTAT said overall real estate prices in the Eastern Province region witnessed an annual increase of 4.2 percent in the second quarter, followed by the Makkah region at 3.9 percent, and the Riyadh region at 3.6 percent.
In the first quarter, the Riyadh region recorded a higher annual rate of change of 10.7 percent, in terms of real estate prices.
“Tabuk, Hail, and Qassim regions recorded increases of 4.7 percent, 2.9 percent, and 1.1 percent, respectively. In contrast, Asir, Madinah, and Jazan regions recorded decreases of 3.9 percent, 3.2 percent, and 2.8 percent, respectively,” GASTAT said.
Dubai Financial Market profit surges 298% in H1 on strong investor inflows
Consolidated revenue jumped 191% to 888.9 million dirhams
DFM’s average daily traded value rose 75% year-on-year to 692 million dirhams
Updated 03 August 2025
Nirmal Narayanan
RIYADH: Dubai Financial Market’s capitalization rose 9.7 percent year on year to 995 billion dirhams ($270.90 billion) in the first half of 2025, supported by strong investor inflows and rising trade volumes.
The gains came alongside a sharp 298 percent increase in net profit before tax, which reached 777.1 million dirhams, the exchange said in its financial statement published via state news agency WAM.
Consolidated revenue jumped 191 percent to 888.9 million dirhams, while expenses excluding tax held steady at 111.8 million dirhams compared to 110.3 million dirhams a year earlier.
The strong performance reflects broader momentum across Gulf Cooperation Council capital markets, with combined capitalization surpassing $4.2 trillion by the end of 2024. The Saudi Exchange alone reached SR9.13 trillion ($2.43 trillion) in equity market capitalization in the first half of 2025.
“DFM delivered a positive performance in the first half of 2025, underpinned by growing market depth and investor engagement,” said Helal Saeed Al-Marri, chairman of DFM.
The DFM General Index also advanced 10.6 percent, reflecting local market resilience and a broader global shift toward growth-oriented economies.
Reporting a net profit before tax of AED 777.1 million, the market achieved an Average Daily Trading Value of AED 692 million — a 75% year-on-year increase — with total traded value surging to AED 85 billion, up 77% compared to AED 48 billion in H1 last year.
— Dubai Financial Market (@DFMalerts)
“The rise in the DFM General Index, alongside sustained participation from institutional and foreign investors, is set against the backdrop of a dynamic Dubai economy, where record real estate activity, growing hedge fund presence, and increased capital flows have reinforced the emirate’s status as a global financial hub,” added Al-Marri.
DFM’s average daily traded value rose 75 percent year-on-year to 692 million dirhams, with total traded value climbing 77 percent to 85 billion dirhams. The average number of daily trades increased 37 percent to around 13,900, according to WAM.
DFM also onboarded 53,655 new investors, 84 percent of whom were foreign, bringing the total investor base to over 1.2 million.
Institutional activity accounted for 71 percent of total trading, with foreign investors contributing 53 percent of volume and holding 20 percent of market capitalization.
“DFM’s performance in the first half of 2025 reflects a market evolving with purpose, demonstrating steady progress in executing our strategic initiatives and maintaining investor confidence,” said Hamed Ali, CEO of DFM and Nasdaq Dubai.
“As we expand access to new products and deepen market infrastructure, DFM remains a magnet for capital and a launchpad for the region’s most ambitious issuers,” he added.
IsDB drives development across over 2 percent of world’s countries
Jeddah-based organization founded in 1974 is recognized as a global leader in Islamic finance
Updated 03 August 2025
MOHAMMED AL-KINANI
JEDDAH: A year after marking its 50th anniversary, the Islamic Development Bank remains at the forefront of global development finance, recognized for its distinctive model that blends Shariah finance principles with strategic investments.
Established in August 1974 and commencing operations in October the following year in , the IsDB has grown into a distinctive institution within the global development landscape, championing ethics, equity, and solidarity among its 57 member countries and impacting one in five people worldwide.
The bank was founded through a visionary initiative led by Saudi King Faisal bin Abdulaziz and other Islamic leaders to foster development cooperation among member states of the Organization of Islamic Cooperation and enhance the wellbeing of Muslim communities.
Financial strength
The IsDB is recognized as one of the world’s most active multilateral development banks and a global leader in Islamic finance. It boasts prestigious AAA credit ratings by Moody’s, S&P, and Fitch — reflecting its strong financial stability and low risk.
With a subscribed capital of $76 billion, the bank is well-positioned to support large-scale development projects and foster economic growth across its member countries.
FASTFACTS
• Established in August 1974 in , the IsDB has grown into a distinctive institution within the global development landscape, championing ethics, equity, and solidarity among its 57 member countries and impacting one in five people worldwide.
• ’s enduring support remains crucial as the IsDB charts its strategic future, committed to tackling today’s challenges and strengthening solidarity throughout the Muslim world.
The Jeddah-based organization has evolved into a group of five institutions representing member states across four continents, with total approvals exceeding $182 billion for more than 12,000 development projects, as of April 2024.
Built on strong partnerships and trusted governance, the bank continues to promote sustainable socioeconomic development. ’s enduring support remains crucial as the IsDB charts its strategic future, committed to tackling today’s challenges and strengthening solidarity throughout the Muslim world.
Among its strongest partnerships is with Turkiye, a founding member that has received nearly $13 billion in IsDB approvals across 545 projects. In April 2024, both sides launched a new $6.3 billion framework to boost sustainability, productivity, Islamic finance, and digital transformation, reaffirming the bank’s long-term commitment to Turkiye’s development.
Speaking to Arab News, Abdulmohsen Al-Alshiekh, assistant professor and board member of the Saudi Economic Association, said over the past five decades, the IsDB has played a critical role as a development catalyst across the Islamic world.
He added that its effectiveness can be assessed on several fronts, including Infrastructure development, human capital investment, Shariah-compliant financing, crisis response, and South-South cooperation.
“IsDB has financed thousands of projects in transport, energy, water, and urban development, significantly improving connectivity and public services across its member countries,” Al-Alshiekh said.
Abdulmohsen Al-Alshiekh, assistant professor and board member of the Saudi Economic Association. (Supplied)
He added that through scholarship programs, capacity-building initiatives, and education sector support, IsDB has contributed to advancing education, vocational training, and knowledge economies in low- and middle-income member states.
As for the bank’s Islamic law financing compliance, Al-Alshiekh said that one of IsDB’s unique strengths is its adherence to Islamic finance principles. “By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally,” he added.
Crisis response
Al-Alshiekh said the bank has shown agility in responding to global crises, including the COVID-19 pandemic, by mobilizing special funds, providing concessional financing, and supporting resilience and recovery efforts in vulnerable member countries.
He added that the bank continues to foster cooperation among member states through trade finance, investment insurance, and technology transfer initiatives, reinforcing its role as a key platform for intra-OIC economic collaboration.
Development reach
Al-Alshiekh noted that countries across sub-Saharan Africa, the MENA region, South Asia, and Southeast Asia have benefited from IsDB’s interventions, underscoring several priority sectors including infrastructure, education, health, agriculture, and trade.
“These investments have helped close infrastructure gaps and improve regional integration, especially in landlocked and low-income countries,” he added.
On education and health, the assistant professor said the IsDB has funded scholarships, technical training, hospitals, and pandemic response. It has also supported irrigation, rural development, and agribusiness in sub-Saharan Africa and South Asia to fight poverty and boost food security.
IsDB has funded health programs in many countries across sub-Saharan Africa, the MENA region, South Asia, and Southeast Asia . (Supplied)
“Countries such as Senegal, Niger, Nigeria, and Sudan have received substantial support in infrastructure, agriculture, and education,” he said.
Countries recovering from conflict or facing economic challenges, such as Yemen, Egypt, Morocco, and Tunisia, have received significant assistance, while Bangladesh, Pakistan, Indonesia, and the Maldives have also benefited from a mix of infrastructure, health, and education investments, Al-Alshiekh added.
Unequal model
Unlike conventional multilateral development banks, all the bank’s financial transactions comply with Islamic principles.
“One of IsDB’s unique strengths is its adherence to Islamic finance principles,” Alalshiekh said “By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally.”
Youssef Saidi, a research fellow at the Economic Research Forum, emphasized the importance of distinguishing the IsDB’s model from that of conventional multilateral development banks.
“To understand the unique contributions of the IsDB, it is essential to examine how its development model contrasts with those of the conventional multilateral development banks, which often focus on standardized approaches that may not fully address the unique needs of developing countries, potentially limiting their effectiveness in fostering sustainable growth,” Saidi told Arab News.
Youssef Saidi, research fellow at the Economic Research Forum. (Supplied)
He added that the IsDB focuses on Islamic finance principles, socio-economic development, and innovative approaches to financing and project implementation.
“These characteristics emphasize the importance of adaptability and responsiveness to the specific needs of member countries, which is essential for effective development financing,” he said.
He noted that this adaptability allows the IsDB to forge partnerships that boost funding and enhance project delivery, similar to other multilateral development banks.
Future priorities
As the global development landscape becomes increasingly complex, both Saidi and Al-Alshiekh agree that the IsDB must recalibrate its strategic focus to address emerging challenges.
“The challenges facing the IsDB include addressing governance issues, ensuring effective resource allocation, and adapting to the evolving needs of its member countries to enhance development outcomes,” Saidi said.
To maintain its relevance, the IsDB must navigate challenges such as regional disparities in development, ensuring equitable resource allocation, and fostering innovation in Islamic finance practices, he also said.
Looking ahead, Al-Alshiekh said the IsDB is expected to broaden its role in key areas such as climate action through green sukuk, private sector partnerships focused on small and medium enterprises, fintech, digital infrastructure and e-governance, and support for fragile regions via stabilization funds and humanitarian-development-peace frameworks.
Enduring values
While the IsDB shares several features with conventional development banks, including alignment with the UN Sustainable Development Goals, it remains rooted in a distinct ethos.
“Unlike conventional MDBs, IsDB operates entirely on Islamic finance principles. This means it avoids interest-bearing loans and instead uses instruments like Murabaha, or cost-plus sale, ijara, or leasing, and istisna’a, or construction financing, as well as sukuk,” Al-Alshiekh explained.
He added that the IsDB’s approach is value-based, emphasizing ethical finance, social justice, and equitable growth that aligns with Islamic principles. “This contrasts with the often secular and market-oriented frameworks of conventional MDBs.”
Governance is another differentiator. “IsDB’s governance model is rooted in the OIC (Organization of Islamic Cooperation), with its members being exclusively Islamic countries,” he said.
This allows for a greater cultural and strategic alignment among its stakeholders, while conventional MDBs tend to have a broader, more diverse global membership, he noted.
Al-Alshiekh also underlined the principle of solidarity that guides the bank’s resource allocation.
“The IsDB emphasizes ‘Islamic solidarity’, often prioritizing needs-based resource allocation and South-South cooperation, in contrast to performance-based lending criteria or conditionalities common in conventional MDBs,” he said.
