IMF: Gloomy Brexit Forecasts for UK are Coming True

Christine Lagarde, the IMF Managing Director. Stefan Rousseau/AP
Christine Lagarde, the IMF Managing Director. Stefan Rousseau/AP
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IMF: Gloomy Brexit Forecasts for UK are Coming True

Christine Lagarde, the IMF Managing Director. Stefan Rousseau/AP
Christine Lagarde, the IMF Managing Director. Stefan Rousseau/AP

The International Monetary Fund has strongly defended its gloomy forecasts for the UK after Brexit, saying pre-referendum warnings of slower growth were coming true.

IMF declared that the exit of UK from the EU is the greatest danger on its economy. In its report on Wednesday, the Fund assured that in case a progress was made in negotiations then this would reinforce trust in the British economy, and in case they failed then this might lead to an unorganized exit from EU, and therefore a collapse in European capital markets.

Since the turn of the year, Lagarde said activity had slowed notably and the UK’s recent performance was a disappointment in the light of the best showing by the global economy since the financial crash.

The IMF’s latest forecast suggests that the UK’s medium-term potential productivity growth is only 1.5, similar to 2017.

Lagarde pointed out that the British economy is affected with the electorates decision, last year, to exit the EU and the government decision to move on with the separation decision.

The Fund stressed that UK is facing uncertainty because it is beginning an ambitious mission to negotiate on the exit from the EU, warning that despite the progress achieved by the UK in talks, but there is still a risk of not reaching a final deal.

Talks include agreeing on a trade deal with the EU and negotiating on new arrangements with around 60 countries to discuss agreements in which UK was a member of during its membership in the EU.

British Prime Minister Theresa May said that UK will exert best efforts to protect the position of London as the globally biggest financial center, during talks of separation from the EU.



Foreign Start-ups Double in Saudi Market

Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
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Foreign Start-ups Double in Saudi Market

Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups

The number of foreign start‑ups holding Saudi Arabia’s “Riyadi” entrepreneurship license has more than doubled to 550 by mid‑2025, up 118 % from the same period a year earlier, the Investment Ministry said.

The Riyadi permit lets overseas founders launch and scale technology and innovation‑focused companies in the kingdom. Officials say the surge reflects a government push to position Saudi Arabia as the Gulf’s start‑up hub by easing market entry and offering flexible regulation.

The General Authority for Small and Medium Enterprises (Monsha’at) has meanwhile issued 364 licenses for business incubators and accelerators, helping international entrepreneurs develop prototypes, find mentors and connect with investors.

Flagship tech gatherings such as Biban and LEAP in Riyadh – along with Saudi delegations to global events including Web Summit, VivaTech and Slush – have burnished the kingdom’s credentials as a magnet for venture capital and talent, the ministry said.

The momentum comes as Riyadh chases the economic‑diversification goals of its Vision 2030 plan. The government is targeting $100 billion a year in foreign direct investment (FDI) by 2030.

Overall investment licensing jumped 67.7 % last year. In the fourth quarter of 2024 alone, Saudi Arabia issued 4,615 licenses, up 59.9 % year on year.

Net FDI inflows moderated to 16.0 billion riyals ($4.27 billion) in the third quarter of 2024, 24 % lower than a year earlier but 37 % higher than the previous quarter’s 11.7 billion riyals ($3.12 billion), according to General Authority for Statistics data.

Saudi officials say the Riyadi license is integral to diversifying the economy, fostering innovation and embedding an entrepreneurial culture.