Are you thinking about investing in the Middle East? Here you will find some reasons to invest in different countries of the region which show a differentiated growth compared to other Arab countries. Let’s get started!
Invest in Oman
Oman’s economy is set to grow by 3.3% in 2022, according to a report by the International Institute of Finance.
The increase in demand for oil, alongside the ending of the current Opec+ agreement to allow an increase in oil production, will benefit the country in 2022. A new five-year plan for 2021–25, as part of Vision Oman 2040, has also provided a more tangible outlook for the short term. Reforms are key, Oman having set a 3.2% annual average growth rate in non-oil activities in its GDP. The country plans to diversify its focus to tech, agriculture, fisheries, food processing, transporting, storing and logistics.
Invest in Qatar
Qatar will host the FIFA World Cup 2022 in November and December, bringing with it an abundance of opportunities. The country has predicted that hosting the FIFA World Cup will create more than 1.5 million new jobs in key sectors such as construction, real estate and hospitality.
Organisers hope to attract 1.2 million tourists during the tournament, generating substantial income for the economy. Furthermore, the legacy of the tournament and its increasing profile as a tourist destination should provide longer economic benefits to Qatar.
The country also hopes to attract foreign investors in increasing numbers. In 2019, the government eased restrictions on foreign investment, permitting full foreign ownership of businesses in most sectors. Coupled with a low tax rate of 10% and reinstated diplomatic ties with Saudi Arabia, the country’s attractiveness to investors is increasing.
Invest in Saudi Arabia
Keen to move away from a reliance on fossil fuels, Saudi Arabia is increasing its focus on the private sector. The country expects to witness economic growth of 7.4% in 2022, according to its budget document.
Saudi Arabia is pushing to become a tech hub and in August 2021 launched a series of technology initiatives worth more than $1.2bn. It launched the biggest tech programme in the Middle East and North Africa region, which aims to enhance digital capabilities and is designed to create one programmer out of every 100 Saudi nationals by 2030, in addition to encouraging innovation and creativity. A skilled workforce is likely to attract investors and those wanting to enter the country ahead of the curve to benefit from these types of initiatives.
Invest in United Arab Emirates
Following the beginning of celebrations in 2021 for ‘The Year 50’, as the United Arab Emirates (UAE) celebrated its milestone Golden Jubilee, enthusiasm for growth in the next 50 years is building, promptly starting in 2022.
The country has launched its Projects of the 50, a series of developmental and economic projects that aim to accelerate the UAE’s development, transform it into a comprehensive hub in all sectors and establish its status as an ideal destination for talent and investors.
The central bank of the UAE has forecast the economy to grow by 4.2% in 2022. This growth is aided by the increase in oil and gas prices, a rebound in demand for goods and services but also the country’s response to Covid-19.
The country has been hailed for its efforts in fighting the pandemic. It was one of the first countries in the world to launch support packages and initiatives. As a result, the country increased its share of the Middle East’s GDP to 16.1% in 2020, from 15.9% in 2019.
As part of plans for meet its economic growth targets, the UAE aims to attract $150bn in foreign direct investment by 2030. To remain attractive to investors, the country announced all government entities would adopt a new working week schedule from January 2022. This consists of four-and-a-half days from Monday to Friday morning, bringing it more in line with Western schedules. The UAE’s hands-on approach to attracting global investment and talent, alongside incentives and reforms, make it one to watch.