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Hungary strikes deal with Dubai to develop $5.5bn neighborhood in Budapest

Hungary strikes deal with Dubai to develop $5.5bn neighborhood in Budapest
Budapest, capital of Hungary. Shutterstock
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Updated 14 March 2024
Arab News
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Hungary strikes deal with Dubai to develop $5.5bn neighborhood in Budapest

Hungary strikes deal with Dubai to develop $5.5bn neighborhood in Budapest
Updated 14 March 2024
Arab News
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RIYADH: A neglected neighborhood in Budapest is set to be rejuvenated courtesy of a €5 billion ($5.5 billion) deal with Dubai, according to Bloomberg.

Hungary and the UAE have officially sealed the agreement to recondition a district in Budapest in a Dubai-style, but Bloomberg reported that the project had “drawn criticism even before being formalized.”

Under the deal, Eagle Hills Properties LLC will collaborate with the government to transform a partly abandoned railway station, announced Hungarian Foreign Minister Peter Szijjarto following the signing ceremony with UAE Minister of State for Foreign Trade Thani Al-Zeyoudi.

In 2023, Hungarian Minister Janos Lazar revealed plans for the body to invest approximately €1 billion in enhancing the infrastructure surrounding the area. According to Lazar, Prime Minister Viktor Orban emphasized the need for a significant project evoking the styling of Dubai.

However, the proposed development has met with resistance from the municipal government, which views the introduction of a modern hub as discordant with Budapest’s historical skyline, characterized by its absence of towering skyscrapers synonymous with the UAE city’s urban landscape.

Eagle Hills, headquartered in Abu Dhabi, is a prominent Gulf developer with extensive projects in Europe, Africa, and the Middle East. 

The company has been expanding its presence in regions requiring modern residential and commercial spaces, boasting significant mixed-use developments in Albania, Serbia, and Ethiopia.

Notably, Eagle Hills is led by Mohamed Alabbar, responsible for Emaar Properties PJSC, which constructed Dubai’s Burj Khalifa, the world’s tallest tower.

The UAE has also invested in Arab countries such as Egypt, with a recent $35 billion funding agreement in Ras El-Hekma, a region on the Mediterranean coast 350 km northwest of Cairo.

The country’s economy is projected to grow by 5 percent in 2024, according to the Minister of the Economy, Abdulla bin Touq Al-Marri.

In an interview with Emirates News Agency, he said that more than 73 percent of the national economy is now non-oil, a historic first for the country. 

His projection was in line with assessments by the Ministry of Finance and S&P Global, which forecast growth of 5.7 percent and 5 percent, respectively.

Topics: Dubai Budapest Eagle Hills Properties LLC

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World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
Updated 26 sec ago
Reem Walid
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World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
Updated 26 sec ago
Reem Walid

RIYADH: The third edition of the World Defense Show, scheduled to take place in Riyadh from Feb. 8-12, 2026, has secured a record number of participants, with more than 100 companies from China confirmed to take part.

Notably, the China Pavilion has already filled 88 percent of its exhibition space, making it the second-largest national presence at the event, surpassing even the host nation, Saudi Arabia.

This strong participation underscores the growing global appeal of the show. Since its debut, WDS has seen impressive growth, with exhibition space expanding by 54 percent between 2022 and 2026, more than doubling its size. As of now, over 50 percent of the total floor space for WDS 2026 has already been sold.

The announcement follows the successful conclusion of the second edition of WDS, which hosted 773 exhibitors from 76 countries, facilitated SR 26 billion ($6.9 billion) in deals, and attracted 106,000 trade visits.

“The significant interest and commitment from Chinese exhibitors is a testament to the prominence WDS holds in the global defense space,” said Andrew Pearcey, CEO of World Defense Show.

“Our goal is to bring together global and local stakeholders to advance networking opportunities, strengthen global knowledge-sharing, and shape the future of defense technology,” he said.

The high level of interest from Chinese firms was also evident at the 15th Airshow China in Zhuhai, held from Nov. 12-17. Senior WDS representatives attended the event to engage with potential exhibitors, offering them the opportunity to secure their space at WDS 2026, which is rapidly filling up.

Topics: WDS

Closing Bell: Saudi main index rises to close at 11,811

Closing Bell: Saudi main index rises to close at 11,811
Updated 58 min 26 sec ago
REEM WALID 
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Closing Bell: Saudi main index rises to close at 11,811

Closing Bell: Saudi main index rises to close at 11,811
  • Parallel market Nomu gained 9.64 points, or 0.03%, to close at 29,477.35
  • MSCI Tadawul Index also gained 4.49 points, or 0.30%, to close at 1,485.85
Updated 58 min 26 sec ago
REEM WALID 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 20.80 points, or 0.18 percent, to close at 11,811.98. 

The total trading turnover of the benchmark index was SR4.22 billion ($1.12 billion), as 115 of the stocks advanced and 116 retreated. 

The Kingdom’s parallel market Nomu gained 9.64 points, or 0.03 percent, to close at 29,477.35, with 41 listed stocks advancing and 41 declining. 

The MSCI Tadawul Index also gained 4.49 points, or 0.30 percent, to close at 1,485.85. 

The best-performing stock of the day was The Mediterranean and Gulf Insurance and Reinsurance Co., whose share price rose 9.96 percent to SR20.98. 

Other top performers included Saudi Reinsurance Co. and Thimar Development Holding Co., with their share prices increasing by 6.89 percent to SR38.80, and 6.04 percent to SR43.90, respectively. 

The share prices of Saudi Cable Co. and The Co. for Cooperative Insurance also surged by 5.39 percent and 5.08 percent to SR97.70 and SR132.40, respectively. 

The worst performer was Arriyadh Development Co., whose share price dropped by 5.27 percent to SR26.05. 

Other notable decliners included Alistithmar AREIC Diversified REIT Fund and Red Sea International Co., whose share prices fell by 3.68 percent to SR9.43, and 3.34 percent to SR66.50, respectively. 

Zamil Industrial Investment Co. and The National Co. for Glass Industries also saw declines, with their share prices falling by 3.33 percent to SR26.15, and 3.14 percent to SR49.40, respectively. 

On the announcements front, Amwaj International Co. disclosed its board of directors’ recommendation to distribute SR6 million in cash dividends to shareholders for the fiscal year ending Dec. 31. 

According to a statement on Tadawul, the dividends will cover 6 million eligible shares, with a payout of SR1 per share, representing 10 percent of the share’s par value. 

Amwaj International Co. concluded the trading session at SR42, marking an impressive 18.57 percent increase. 

Arab Sea Information Systems Co. announced updates regarding its project with the Al-Madinah Region Development Authority for managed IT services. 

The company was notified of the decision to cancel the competition due to procedural violations identified following a grievance by a competitor, according to a filing on Tadawul.

The grievance was filed before the award decision or in opposition to it and the company clarified that no costs are associated with the development. 

Arab Sea Information Systems Co. closed the session at SR7.13, down 0.84 percent. 

Topics: Tadawul Closing Bell Saudi Arabia MSCI Tadawul Index TASI Nomu Saudi Stock Exchange (Tadawul) TASI

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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
Updated 17 November 2024
NADIN HASSAN  
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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
  • UAE and Saudi Arabia were the top investment destinations, accounting for 52% of the region’s total deal volume and 81% of deal value
  • Sovereign wealth funds played a key role in driving M&A activity in the region
Updated 17 November 2024
NADIN HASSAN  

RIYADH: Saudi Arabia and the UAE led Gulf region merger and acquisition activity, which increased 7 percent in value to $71 billion in the first nine months of the year. 

According to EY’s MENA M&A Insights 9M 2024 report, the Middle East and North Africa region saw a total of 522 deals during the period, with deal volume rising 9 percent year on year. 

The value growth was largely fueled by a surge in cross-border transactions and substantial investments from sovereign wealth funds, such as the UAE’s Abu Dhabi Investment Authority and Mubadala, and Saudi Arabia’s Public Investment Fund. 

Brad Watson, EY MENA strategy and transactions leader, said: “Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalization of investment regulations and robust capital inflows from investors.” 

He added: “With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value.” 

The UAE and Saudi Arabia were the top investment destinations, accounting for 52 percent of the region’s total deal volume and 81 percent of deal value, with 239 transactions worth $24.5 billion. Both nations continue to benefit from their favorable business environments and strategic economic policies. 

“In particular, the UAE remained a favored investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework,” said Watson. 

Sovereign wealth funds played a key role in driving M&A activity in the region, supporting national economic strategies. These funds were particularly active in sectors aligned with long-term diversification plans, such as technology, energy, and infrastructure. 

Cross-border M&A deals dominated, representing 52 percent of the overall volume and 73 percent of the value, the report added. 

However, domestic M&A activity also saw a notable increase, rising 44 percent year on year to $19.3 billion, driven by government-related entities making significant acquisitions in the oil and gas, metals and mining, and chemicals sectors. 

Insurance and oil and gas emerged as the most attractive sectors, accounting for 34 percent of the total deal value. Technology and consumer products led domestic M&A by volume, with 78 deals representing 31 percent of activity. 

Saudi Arabia recorded the region’s largest domestic transaction, with energy giant Aramco’s $8.9 billion acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Sumitomo Chemical. 

The US remained a top target for MENA investors, with 32 deals valued at $18.3 billion. The US-UAE Business Council helped facilitate these partnerships, with prominent US firms collaborating with UAE public and private sectors on various initiatives. 

Outbound and inbound deals 

Outbound M&A was the largest contributor to deal value, with 147 transactions totaling $41.4 billion, led by insurance and real estate investments. The US and China represented 70 percent of outbound deal value. 

Inbound deals also witnessed growth, rising 20 percent in volume and 47 percent in value to $10.4 billion. The US and UK were the leading contributors, driving activity in technology and professional services. 

Mega deals 

Ten of the region’s largest deals were concentrated in the Gulf Cooperation Council. These included Mubadala and partners’ $12.4 billion acquisition of Truist Insurance Holdings and an $8.3 billion investment in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group. 

“Strengthening regional relationships with Asian and European economies, alongside existing ties with the US, enabled MENA countries to gain access to larger and growing markets,” said Watson. 

As Gulf nations continue diversification strategies and prioritize digital transformation, sectors like technology, energy, and infrastructure are expected to drive further M&A growth. Saudi Arabia and the UAE’s proactive policies and substantial sovereign wealth fund activity position the region as a global investment hotspot. 

Topics: Saudi Arabia UAE MENA EY Merger and acquisitions

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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 17 November 2024
Arab News
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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 17 November 2024
Arab News

RIYADH: The media’s primary role is to translate complex ideas into digestible content for the public, said Craig Smith, host of the Eye on AI podcast and a former correspondent.

In a recent conversation with the Saudi Data and Artificial Intelligence Authority’s GAIN podcast, Smith discussed the rapidly evolving field of artificial intelligence and the challenges media faces in accurately covering it amid both excitement and misinformation.

“You can put AI in a robot, but robotics is one field, and AI is another,” Smith explained, stressing the need for more precise portrayals of AI in the media.

As AI discussions have intensified in the past two years, particularly around its potential threats, Smith emphasized that these debates are meant to encourage further research into AI safety and prompt regulation. However, he noted that the popular press often misinterprets the purpose of these discussions, leading to sensational headlines that contribute to widespread fear.

“The purpose of that discussion is to generate more research around the safety of AI and to spur regulation to get the governments looking at what’s happening,” Smith said.

“But the media often misses this goal, resulting in alarmist narratives like AI will ‘kill us all,’ which detracts from the vital work of understanding and regulating this technology.”

While it’s easy to imagine a dystopian future for AI, Smith pointed out the far more nuanced reality. “We’re still working on getting large language models to be truthful and stop spouting nonsense,” he said, illustrating the long and challenging path ahead in developing reliable AI systems.

Reflecting on the rapid pace of change in the field, Smith highlighted the exciting progress in AI research, particularly since the introduction of the transformer algorithm in 2017.

“It was Ilya Sutskever at OpenAI who built a model around the transformer algorithm and scaled it up,” Smith noted, acknowledging the profound impact this algorithm has had on the development of large language models like ChatGPT and Claude.

Smith’s insights underscored the media’s crucial responsibility in accurately covering AI. By bridging the gap between complex technological advancements and public understanding, journalists have the power to foster informed discussions that will ultimately shape the future of AI in society.

Topics: AI Media reporting content GAIN 2024 Eye On AI

Oman’s non-oil sector grows 4.2% in H1

Oman’s non-oil sector grows 4.2% in H1
Updated 17 November 2024
Nour El-Shaeri
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Oman’s non-oil sector grows 4.2% in H1

Oman’s non-oil sector grows 4.2% in H1
  • Non-oil sector contributed 13.5 billion Omani rials to GDP
  • Oman’s banking sector saw positive growth in the first half of 2024
Updated 17 November 2024
Nour El-Shaeri

RIYADH: Oman’s non-oil sector experienced a 4.2 percent growth year on year in the first half of 2024, driven by the country’s strategic focus on economic diversification as outlined in its 10th Five-Year Plan (2021-2025).

In an interview with the state-run Oman News Agency, Nasser Al-Mawali, undersecretary of the Ministry of Economy, highlighted that this expansion marks significant progress in Oman’s efforts to reduce its dependency on oil revenues and build a more resilient economic base, in line with the objectives of Oman Vision 2040.

By mid-2024, the non-oil sector contributed 13.5 billion Omani rials ($35.1 billion) to the country’s gross domestic product, up from 13 billion rials during the same period in 2023. This sector now accounts for 72.2 percent of Oman’s GDP at constant prices.

Al-Mawali attributed the continued growth in non-oil activities to national programs aimed at accelerating economic diversification and expanding the productive capacity of the economy. The 10th Five-Year Plan, which forms the first phase of Oman Vision 2040, prioritizes increasing private sector participation, supporting small and medium-sized enterprises, and broadening the country’s economic base.

According to Al-Mawali, strategic initiatives under this plan have reached a 90 percent implementation rate as of 2024, with major accomplishments in sectors such as green hydrogen, logistics, pharmaceuticals, and fisheries.

Foreign direct investment in Oman reached approximately 26 billion rials by mid-2024, up from about 17.8 billion rials at the end of 2021.

The country’s overall GDP, at constant prices, grew by 1.9 percent in the first half of 2024, rising from 18.4 billion rials to 18.7 billion rials compared to the same period in 2023. At current prices, GDP increased from 20.4 billion rials to nearly 21 billion rials.

While the non-oil sector posted strong growth, Oman’s oil sector experienced a 2.5 percent decline during the same period, primarily due to a 4 percent drop in crude oil production. On a more positive note, natural gas activities saw a 6.6 percent increase, providing a boost to the energy sector.

Al-Mawali emphasized that the rise in non-oil activities has helped provide a stable foundation for economic growth, buffering the country against fluctuations in global oil prices. Key projects, such as the Duqm Refinery and the development of the integrated economic zone in Al-Dhahirah in partnership with Saudi Arabia, have significantly bolstered Oman’s industrial capabilities and enhanced export potential.

The Duqm Refinery, inaugurated earlier in 2024, is expected to play a crucial role in increasing the manufacturing sector’s contribution to GDP.

Oman Vision 2040 targets an average annual GDP growth rate of 5 percent. So far, the country has achieved a growth rate of around 4.5 percent over the first three years of the 10th Five-Year Plan, indicating strong progress toward this goal.

The 10th Five-Year Plan also aims for an annual growth rate of 3.2 percent in the non-oil sector, with a long-term objective of increasing the sector’s contribution to GDP to 90 percent by 2040.

On a separate note, Oman’s banking sector saw positive growth in the first half of 2024, with total credit rising by 5 percent, reaching 32 billion rials by the end of September. Credit extended to the private sector increased by 4.2 percent, amounting to 26.7 billion Omani rials.

The majority of this credit was allocated to non-financial corporations, which accounted for 45.2 percent, followed by individual borrowers at 45 percent. Financial corporations received 6.3 percent, and other sectors made up the remaining 3.5 percent.

Total deposits in Oman’s banking sector grew by 13.7 percent, reaching 31.6 billion rials as of September. Private sector deposits saw a significant increase of 12.7 percent, totaling 20.7 billion Omani rials.

According to the Central Bank of Oman, individuals held the largest share of private sector deposits at 50.2 percent, followed by non-financial corporations at 29.5 percent, and financial corporations at 17.8 percent. Other sectors accounted for 2.5 percent of the total private sector deposits.

Topics: Oman oman economy

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