Dubai Expo in Focus as UAE Racks Up $700m of Trade With Israel Since Normalization

FILE PHOTO: The sign of Dubai Expo 2020 is seen at the entrance of the site in Dubai, United Arab Emirates January 16, 2021. REUTERS/Rula Rouhana/File Photo
FILE PHOTO: The sign of Dubai Expo 2020 is seen at the entrance of the site in Dubai, United Arab Emirates January 16, 2021. REUTERS/Rula Rouhana/File Photo
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Dubai Expo in Focus as UAE Racks Up $700m of Trade With Israel Since Normalization

FILE PHOTO: The sign of Dubai Expo 2020 is seen at the entrance of the site in Dubai, United Arab Emirates January 16, 2021. REUTERS/Rula Rouhana/File Photo
FILE PHOTO: The sign of Dubai Expo 2020 is seen at the entrance of the site in Dubai, United Arab Emirates January 16, 2021. REUTERS/Rula Rouhana/File Photo

Israel and the United Arab Emirates, which normalized relations a year ago, are looking to Dubai's Expo world fair in October to boost bilateral trade, which now stands at around $712 million, Reuters reported.

Israel is aiming for $3 billion in three years, it said this week on its Arabic-language Twitter account.

In September, the UAE and Bahrain both inked US-brokered deals to establish ties with Israel, followed by Sudan and Morocco.

The bulk of trade between the UAE and Israel, which have similar GDPs of around $400 billion, has involved imports from the Gulf's dominant logistics and re-export hub, including plastics, electronics, auto parts and gems.

Israel recorded $457 million of imports from the UAE between January 2020 and June this year, and $255 million in exports to the UAE, its Central Bureau of Statistics said.

Dubai, which contains the region's largest transhipment port at Jebel Ali, said in January that bilateral trade since September 2020 stood at $272 million.

Zeev Lavie of the Israeli Chambers of Commerce (FICC) said normalization had expanded Israeli trade within the wider Middle East via the UAE. "We're becoming much more regional," he said.

Abdulla Baqer of the UAE-Israel Business Council expects major deals on logistics, medicine and start-up incubation this year.

Israel has said it plans to open an economic attache office in Abu Dhabi this summer, and the UAE and Israel have been discussing a Free Trade Agreement.



Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.