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UAE Approves Strategy to Double Contribution of Digital Economy to GDP Within 10 Years

Sheikh Mohammed bin Rashid chairing a cabinet session on Monday, April 11, 2022. (WAM)
Sheikh Mohammed bin Rashid chairing a cabinet session on Monday, April 11, 2022. (WAM)
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UAE Approves Strategy to Double Contribution of Digital Economy to GDP Within 10 Years

Sheikh Mohammed bin Rashid chairing a cabinet session on Monday, April 11, 2022. (WAM)
Sheikh Mohammed bin Rashid chairing a cabinet session on Monday, April 11, 2022. (WAM)

The UAE cabinet on Monday approved a digital economy strategy to double the contribution of the digital economy to the GDP from 9.7% to 19.4% within the next 10 years. It also aims to transfer the UAE into a hub for digital economy regionally and globally.

The strategy includes more than 30 initiatives and programs targeting six sectors and five new areas of growth.

It will define the digital economy in the country, with a unified mechanism for measuring its growth while measuring its indicators periodically.

The strategy will define the priorities of digital economy in the country, ensuring the contribution of all other economic sectors to promote and support the digital economy.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, said: “Our goal is to increase the contribution of the digital economy sector to the non-oil GDP by 20 percent over the next 10 years.”

“We formed a Council for Digital Economy chaired by Omar bin Sultan al-Olama, the UAE Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications,” he added.

The cabinet also approved a federal law about the public finance. It compels federal authorities to coordinate with the Ministry of Finance to achieve the financial strategy’s objectives.

It approved executive regulation of the federal decree-law on private education aimed at regulating the work of private schools in the country, in accordance with the objectives of the private education law, the provisions of which apply to all private schools in the UAE.

The executive regulation aims to enhance a high-level educational system that regulates the licensing mechanism for private schools, to ensure the quality of education and to place students among the best in the world in knowledge assessment tests.

The cabinet further adopted a unified framework to coordinate and organize the humanitarian and development work of the charitable institutions.

It includes a guide that organizes the seasonal work of all UAE donors concerned with foreign aids, in accordance with international standards, and in line with the UAE foreign aid policy and strategy.

This framework includes the establishment of coordinating offices in the country's missions abroad for foreign aid.

It will contribute to regulating financial transfers to donors, and the UAE charitable institutions in the beneficiary countries.

In addition to reviewing and discussing several reports, the cabinet approved an agreement to linking payment systems among GCC countries, an agreement with Brazil, two agreements with Denmark and an agreement with the United States.

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Business

IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)
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IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)

The International Monetary Fund on Thursday said it was engaging with Iraqi authorities as it prepares a new bailout program for the country, whose economy has been battered by the war on Iran.

The US-Israel war on Iran, launched in late February, plunged the region into conflict and saw Tehran's retaliatory action virtually block the Strait of Hormuz, a key energy supply route.

Iraq's economy is heavily dependent on its energy exports, which almost entirely rely on transport through the strait.

Before the war, the country was already facing acute fiscal constraints, and the IMF this month forecast its economy would contract by 16 percent this year.

"Our plan now is to engage with the authorities to understand better their priorities, how they want to address their vulnerabilities, and then to move ahead on how we can best support them with a program," said IMF spokesperson Julie Kozack at a regular press briefing in Washington.

Kozack cited the country's severe financing constraints from before the outbreak of the war, and said its very narrow non-oil revenue base was also putting pressure on the fiscal balance.

The last of Iraq's three most recent programs with the IMF ended in 2019.

It has a total of around $428 million in interest payments due to the Fund by 2030, according to IMF data.

IMF Chief Kristalina Georgieva first disclosed that Iraq had approached the Fund for a new program at the Fund's annual meetings in Bangkok earlier this month.

At those meetings, Georgieva lauded the resilience of global economic growth in the face of wars in Iran and Ukraine, but warned that outcomes were highly uneven with more vulnerable economies battered hard by the conflicts.

Business

Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
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Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)

Iraq's Central Bank Governor Nizar Nasser Hussein announced Thursday that the gap between the dinar's official exchange rate and its parallel-market rate had narrowed to 9%, down from approximately 24%, while denying reports that new banknotes were being printed.

Hussein made the remarks during a visit by the Iraqi Parliament's Investment and Development Committee to the central bank to discuss the repercussions of changes to the dollar exchange rate, their impact on economic and investment activity, and the challenges facing investors and local companies, according to a parliamentary statement carried by the Iraqi News Agency (INA).

The governor confirmed that no currency printing was underway, describing reports to the contrary as inaccurate. He also noted that the gap between the official and parallel-market exchange rates had fallen to 9%, as Iraq faces mounting financial and economic pressures stemming from the war involving Iran and disruptions to oil exports.

In early October, the Central Bank of Iraq raised the dollar's selling rate to the public to 1,520 dinars, from approximately 1,320 dinars previously, a move that devalued the dinar by around 15% against the dollar amid pressure on oil revenues and foreign currency inflows.

Iraq's public finances depend heavily on oil revenues, making export disruptions and declining foreign currency inflows major sources of pressure on the state budget and foreign exchange market.

During the meeting, the central bank outlined measures taken to support the economy, including assistance to state-owned and private banks in providing citizens with concessional loans ranging from 5 million to 15 million Iraqi dinars.

For its part, the Investment and Development Committee stressed the need to limit the impact of exchange rate changes on investment project costs, raw material prices and contractual obligations, as well as their repercussions for market stability and citizens' purchasing power.

The committee called for stronger coordination between the central bank, government agencies and the banking sector, streamlined bank financing procedures, and the removal of obstacles facing investors to ensure projects can continue without imposing additional burdens on businesses and citizens.

The developments come as Iraqi authorities seek to contain the economic fallout from the war amid mounting pressure on oil exports and public finances.

Iraq had requested financial support from the International Monetary Fund, which projected that the country's economy would contract by 16% this year, according to estimates cited in the report.

Business

Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
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Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)

Riyadh's public transport network is increasingly becoming a factor in real estate investors' calculations, with Saudi Arabia's rail services recording more than 40.9 million passengers during the third quarter of 2026. Of these, the Riyadh Metro accounted for 30.4 million riders.

This draws renewed attention to the attractiveness of commercial properties located near metro stations and the opportunities for cafés, restaurants, and retail outlets to benefit from passenger traffic. However, industry specialists note that assessing the metro's actual impact on rents and occupancy rates requires comparing property performance before and after operations began, while taking other market factors into account.

In this context, Khaled Al-Mobid, CEO of Menassat Realty Co., told Asharq Al-Awsat that the Riyadh Metro has begun to reshape the concept of a prime commercial location.

A desirable site is no longer limited to properties situated on major roads; ease of access through public transportation has become an additional factor enhancing investment appeal.

Al-Mobid added that average rents in Riyadh's major shopping centers reached approximately SAR 2,650 per square meter annually, reflecting growth of 1.2 percent, while occupancy rates remained stable at 91 percent during the first half of 2026. He stressed, however, that these indicators cannot be attributed solely to the metro.

He pointed to practical signs of the growing importance of transport-linked commercial activity, including the offering of 733 commercial units within the public transport network, in addition to opportunities available for cafés and financial services.

Metro Enhances the Appeal of Commercial Locations

Al-Mobid expects businesses that depend on daily customer traffic, particularly cafés, restaurants, and quick-service providers, to benefit from locations near the busiest stations. He believes proximity to metro stations will become a more important consideration for investors and developers when selecting sites and planning mixed-use projects.

He emphasized that the value of a commercial location in the future will not be measured solely by the number of cars passing by, but also by the number of people who can easily reach it without needing a vehicle.

A view of the Riyadh Metro's Blue Line emerging from the Financial District Station (SPA)

Measuring the Real Estate Impact Requires Market Comparison

For his part, Khalid Aljasir, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the launch of the Riyadh Metro represents a significant development in the city's infrastructure and is expected to gradually influence the real estate demand landscape, particularly in commercial areas that benefit from improved accessibility and higher user traffic.

Aljasir explained that proximity to public transport stations can enhance a property's investment appeal, although the extent of the impact varies depending on the location, the nature of the commercial activity, and the level of demand in the area.

He stressed that increases in rents or occupancy rates cannot be attributed solely to metro operations without analyzing other market variables.

He noted that measuring the metro's actual impact requires comparing similar commercial properties located near stations with those farther away, both before and after operations began. Metrics such as average rents, occupancy rates, and demand levels can help determine how improved accessibility affects real estate performance.

A view of the Riyadh Metro's Yello Line (SPA)

Accessibility Becomes a Key Consideration for Investors

Aljasir added that accessibility and integration with public transport networks are increasingly important factors when evaluating investment opportunities. Investors assess a property's ability to attract tenants and users, as well as how easily customers and employees can reach it, alongside traditional considerations such as location and size.

He noted that cafés, restaurants, retail stores, and daily-service businesses may benefit from sites experiencing steady pedestrian traffic near metro stations. Commercial offices may also gain from improved accessibility for employees and clients.

Furthermore, locations connected to public transport could become more attractive for mixed-use developments that combine commercial, office, and service functions.

Aljasir stressed that proximity to a station is not the sole determinant of investment success. Economic viability, rent levels, actual demand, the nature of the business, and overall site quality remain fundamental factors in decision-making.

He underscored the importance of studying the integration of public transportation and real estate development and evaluating its impact on expected cash flows and investment returns, rather than assuming that all properties near stations will experience the same increase in value or rental rates.