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Dubai Issues 31,000 Business Licenses, Reports 77% Growth in H1

A general view of Dubai. (WAM)
A general view of Dubai. (WAM)
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Dubai Issues 31,000 Business Licenses, Reports 77% Growth in H1

A general view of Dubai. (WAM)
A general view of Dubai. (WAM)

A total of 31,000 commercial licenses were issued in Dubai during the first six months of 2021, a growth of 77 percent compared to 17,478 licenses issued in the same period in 2020.

The record growth can be attributed largely to measures taken to ensure business continuity and further simplify government procedures for businesses.

Rapid response measures from the government and decisive adaptive changes to confront the COVID-19 pandemic have enabled Dubai to successfully contain the outbreak and maintain its robust economic growth, stated Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Executive Council of Dubai.

Sheikh Hamdan said the government adopted a set of new strategic approaches and amended policies to accelerate economic growth and reduce the cost of doing business, apart from offering stimulus packages to enhance business and investor confidence.

The strong growth of the business sector reflects Dubai’s ability to transform challenges into achievements, in line with the vision of Sheikh Mohammed bin Rashid Al Maktoum, and his conviction that successful crisis management creates opportunities, said the Crown Prince.

Sheikh Mohammed bin Rashid’s vision has allowed Dubai to successfully overcome the repercussions of COVID-19, accelerate its recovery and reinforce its status as a global hub and the world’s best place to live and work.

He added: “The records we have achieved inspire us to continue working as one team to further enhance Dubai’s position as an incubator for entrepreneurs and a hub for global companies by identifying new opportunities for investors to accomplish their ambitions and building innovative development pathways to reinforce Dubai’s global leadership in all fields.”

Sami Al Qamzi, Director-General of Dubai Economy, said the exceptional business licensing activity witnessed by Dubai during the first half of 2021 is a testament to the resilience and sustainability of the emirate’s economy.

According to Dubai Economy, “Invest in Dubai,” the integrated digital platform for establishing a business in Dubai contributed to 25 percent of new licenses issued during the last five months.

Together, the 25 percent of licenses account for 10,591 investors from 117 different nationalities.

A total of 37 percent of the new investors that came through the platform belonged to the 26-35 age group, while another 35 percent were aged 36-45.

The half-yearly report of Dubai Economy showed a remarkable recovery in many vital activities and sectors during the first half of 2021.

The Restaurants and Cafes category saw 1,153 new licenses, a growth of 92 percent compared to the same period last year.

The Tourism sector welcomed 342 licenses that included 20 new hotels (a growth of 147 percent), in addition to various other activities, such as inbound and outbound trips.

The sector is expected to see increased activity, especially with the rise in tourist numbers expected due to Dubai’s continued popularity as a major global destination and its profile as the venue for Expo this year.

The Gold sector also witnessed a remarkable growth of 102 percent compared to the first half of 2020.

The real estate sector witnessed the highest growth of 186 percent with 487 licenses being issued, compared to 170 licenses for the same period last year. Activities in this sector included brokerage of sale and purchase and real estate rentals.

Transport, Shipping and Warehousing, a prominent sector linked to internal and external trade, saw 872 new licenses in H1 2021, a 105 percent growth from the corresponding period in 2020.

The medical and pharmaceutical sector also witnessed a steep rise in the number of licenses issued (196), growing 120 percent, compared to the first half of 2020.

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IMF Forecasts Saudi Economy to Grow 7.9% in 2027

General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
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IMF Forecasts Saudi Economy to Grow 7.9% in 2027

General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS
General view of the Kingdom Tower in downtown Riyadh, Saudi Arabia, October 12, 2026. Picture taken with a mobile phone. REUTERS

The International Monetary Fund (IMF) expects the Saudi economy to record strong growth of 7.9 percent in 2027, reflecting a projected recovery in energy production and exports, as well as the gradual restoration of regional trade flows as war-related disruptions ease and the Strait of Hormuz reopens under the report’s baseline scenario.

The forecast highlights the Saudi economy’s ability to regain momentum after the pressures caused this year by disruptions to energy production and transportation. Saudi Arabia is expected to benefit from its diversified oil export routes and infrastructure, which allow part of its exports to be shipped via the Red Sea rather than through the Strait of Hormuz.

In its October World Economic Outlook, the IMF projected that Saudi Arabia’s economy would contract by 3.3 percent in 2026 before rebounding to 7.9 percent growth in 2027.

In its April forecasts, the Fund had expected growth of 3.1 percent in 2026 and 4.5 percent in 2027, reflecting a significant shift in projections due to developments in the conflict and assumptions regarding the resumption of economic activity.

Export Infrastructure Supports Economic Resilience

Saudi Arabia benefits from alternative oil-export outlets, most notably the East-West Pipeline, which transports crude oil from the Eastern Province to the Red Sea port of Yanbu with a capacity of approximately 7 million barrels per day.

The Kingdom aims to raise pipeline capacity to 10 million barrels per day, enhancing the flexibility of its export system in the face of maritime disruptions.

These alternatives strengthen Saudi Arabia’s ability to mitigate the impact of shipping interruptions on oil flows. Under the IMF’s forecasts, the gradual recovery of production and exports is expected to support economic activity next year.

Gulf Recovery Driven by Rebound in Energy Production

The strong growth forecast is not limited to Saudi Arabia. The IMF also expects several Gulf economies to recover sharply in 2027 as production, exports, and logistics services rebound.
Projected growth rates for 2027 are Qatar 18.8%, Kuwait 17.1%, Bahrain 13.9%, the United Arab Emirates 7.7% and Oman 2.2%.

These forecasts follow severe pressure during 2026, when the IMF expects Kuwait’s economy to contract by 16.7%, Qatar’s economy by 15.6%, Bahrain’s economy by 11.3% and the UAE economy to contract by 3.9%.

Meanwhile, Oman is expected to achieve growth of 4.1 percent in 2026.

The IMF’s baseline scenario assumes that the Strait of Hormuz will begin reopening in March 2027, with a broad return to pre-war conditions by October 2027. This would allow energy flows, shipping, insurance services, and payment systems to recover gradually.

The pace of this recovery remains dependent on the course of the conflict and the stability of maritime navigation. Nevertheless, Saudi Arabia’s diversified export routes provide an important buffer, enhancing the economy’s capacity to absorb shocks and restore growth as regional conditions improve.

Business

IMF Raises its Forecast for World Growth this Year but Says Economies Will Slow in 2027

(L-R) IMF Communications Officer Jose Luis De Haro, IMF Chief Economist Silvana Tenreyro, IMF Research Department Deputy Director Petya Koeva Brooks and IMF Research Department Division Chief Deniz Igan attend the World Economic Outlook press briefing at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 13, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
(L-R) IMF Communications Officer Jose Luis De Haro, IMF Chief Economist Silvana Tenreyro, IMF Research Department Deputy Director Petya Koeva Brooks and IMF Research Department Division Chief Deniz Igan attend the World Economic Outlook press briefing at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 13, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF Raises its Forecast for World Growth this Year but Says Economies Will Slow in 2027

(L-R) IMF Communications Officer Jose Luis De Haro, IMF Chief Economist Silvana Tenreyro, IMF Research Department Deputy Director Petya Koeva Brooks and IMF Research Department Division Chief Deniz Igan attend the World Economic Outlook press briefing at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 13, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
(L-R) IMF Communications Officer Jose Luis De Haro, IMF Chief Economist Silvana Tenreyro, IMF Research Department Deputy Director Petya Koeva Brooks and IMF Research Department Division Chief Deniz Igan attend the World Economic Outlook press briefing at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 13, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

The International Monetary Fund on Tuesday slightly upgraded its outlook for the world economy for this year, but it's still forecasting growth at a sluggish 3.1%.

The IMF had forecast global growth at 3.0% in July. The world economy expanded at a 3.5% annual pace in 2025.

The IMF Economic Outlook predicts that growth in the United States will remain steady at 2.3% in 2026 and 2027.

It said it now expects oil prices to be up nearly 41% this year, at an average of $96 a barrel, boosting global inflation to 4.7% in 2026 from 4.1% last year.

The update released Tuesday, as world economic and financial leaders gather in Bangkok for the fall meetings of the IMF and World Bank, says the boom in artificial intelligence is offsetting damage from sharply higher prices for oil and gas.

AI has uneven impacts. But the benefits of the AI boom are not shared equally: the US and China account for more than three-quarters of net demand for imports of computer chips and other AI-related equipment, it said.

“The outlook is highly uneven,” Silvana Tenreyro, the IMF's director of research, told reporters in Bangkok.

Growth is increasingly concentrated, with 32 countries accounting for 95% of global growth, the report said. That compares with 54 countries as of April.

“The global economy is not simply slowing or accelerating; rather, growth is being reallocated across countries according to their exposure to the war-induced supply shock and AI-related demand strength,” it says, according to The Associated Press.

AI's effects on employment are a key focus of the meetings in Bangkok, which IMF Managing Director Kristalina Georgieva described during an event Monday as “a slow moving tsunami, but tsunami nonetheless."

"The impact over time on jobs globally we estimate to be around 40% — jobs either augmented or downgraded or eliminated. And we are already seeing some of this impact,” she said.

Debt remains a key concern. Last week, the IMF chief urged countries both rich and poor to do a better job of improving their national finances, noting that mounting levels of debt pose a growing risk to global financial stability.

That's especially true at a time of high borrowing costs, Tenreyro said.

The report said growth in the advanced economies is forecast to pick up slightly this year, to 2.1% from 2.0% in 2025, and then to slow to 1.9% next year.

It based its forecasts on the assumption that shipments of oil and gas through the Strait of Hormuz will resume by March, and that the boom in AI demand will moderate.

Growth in the US will remain flat, at 2.3%, it said.

Countries that are somewhat insulated from the energy shocks of the Iran war and that are benefiting from rapid adoption of AI are managing to keep growth on track. But developing economies and emerging markets more vulnerable to higher costs for oil and gas will see growth slow to 3.7% this year from 4.5% in 2025, the report says. It forecasts they will regain momentum next year, expanding at a 4.4% annual pace.

The situation is much worse in the Middle East and Central Asia, where those regions' economies are expected to contract this year before recovering to a 6.3% rate of growth in 2027.

Outlooks vary by region. The 21 European countries that share the euro currency are expected to grow by 1.1% this year and 1.2% in 2027.

China, the world’s No. 2 economy, is expected to expand 4.5% this year, down from 5% in 2025, in line with the government's official target.

India is once again forecast to be the world’s fastest-growing major economy, advancing at a 7% clip, down from a sizzling 7.7% last year.

The IMF is a 191-nation lending organization that works to promote economic growth and financial stability and to reduce global poverty. At the meetings in Bangkok, finance ministers and central bank governors will assess the state of the world economy and discuss strategies to support financial stability and sustained growth.

Business

2 American Economists Win Nobel for Work on Managing Economic Shocks

US macroeconomists Robert E Hall and Michael Woodford are seen on a screen as they are announced as the laureates of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel at the Royal Swedish Academy of Sciences in Stockholm on October 12, 2026. (Photo by Jonathan Nackstrand / AFP)
US macroeconomists Robert E Hall and Michael Woodford are seen on a screen as they are announced as the laureates of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel at the Royal Swedish Academy of Sciences in Stockholm on October 12, 2026. (Photo by Jonathan Nackstrand / AFP)
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2 American Economists Win Nobel for Work on Managing Economic Shocks

US macroeconomists Robert E Hall and Michael Woodford are seen on a screen as they are announced as the laureates of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel at the Royal Swedish Academy of Sciences in Stockholm on October 12, 2026. (Photo by Jonathan Nackstrand / AFP)
US macroeconomists Robert E Hall and Michael Woodford are seen on a screen as they are announced as the laureates of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel at the Royal Swedish Academy of Sciences in Stockholm on October 12, 2026. (Photo by Jonathan Nackstrand / AFP)

American economists Robert E. Hall and Michael Woodford won the Nobel Memorial Prize in economics Monday for their work on models that have helped governments and central banks manage economic shocks, such as energy crises and inflation.

The Royal Swedish Academy of Sciences announced the winners in Stockholm, noting that their work created the theoretical foundation to better understand how consumers decide whether to save or spend, insights that make it easier for policymakers worldwide to stabilize economies after fluctuations, The Associated Press said.

“The laureates’ research has made it possible to manage major macroeconomic crises far more effectively than before,” the Nobel committee wrote in a paper explaining the economists' work. “It has been hugely beneficial during the pandemic and the energy crises of recent years.”

Hall, 83, is affiliated with Stanford University in California. Woodford, who was born in 1955, is affiliated with Columbia University in New York.

Woodford spoke to the committee by phone from New York: “It’s a tremendous honor. It’s a surprise.”

Hall also said the award was a “wonderful surprise.”

“I’ve spent my career trying to understand how the economy works, following interesting questions wherever they led. When I thought I had a new idea, the next step was to find out whether it was actually new, whether it was right, and whether it mattered," he said in a statement released by Stanford.

Duo overturned earlier economic assumptions

For decades, governments responded to economic shocks by following the Depression-era prescriptions of the British economist John Maynard Keynes: Intervene in the economy by lowering interest rates and taxes and hiking government spending, thereby encouraging consumers and businesses to spend and invest and help restart growth.

“This is the Keynesian recipe and it worked well — until it didn’t,” said Timo Boppart of the Nobel economics committee.

Policymakers had thought economic management involved simple trade-offs — unemployment, for instance, would stay low at a time of high inflation and rise when inflation fell. But the “ stagflation ” of the 1970s — when the world economy experienced simultaneous high inflation and high unemployment — proved the formula was simplistic.

Some economists argued that government attempts to intervene in the economy were doomed to fail. But Hall and Woodford, in separate contributions, set about improving the Keynesian model to take into account how consumers and businesses actually make decisions about whether to invest and spend.

“Economic outcomes are the result of millions of decisions made at the microlevel by households and businesses,’’ the Nobel committee wrote. “Using models based upon this approach, rather than simply studying the economy from a macro perspective, like a bird’s eye view,” Hall and Woodford’s research “generated a paradigm shift in the theory of stabilization policy.”

Hall studied consumer choices

Hall studied the way that consumers' decisions about whether and how much to spend depend on what they expect their future income to be.

“If they are optimistic, they will consume more than if they are pessimistic,’’ the committee wrote. But consumer expectations can change unexpectedly as new information about the economy comes in. Hall found that forecasting future consumer spending is virtually impossible.

The idea that consumption is mostly unpredictable “is not good news for forecasters, or policymakers,” Olivier Blanchard, who was chief economist at the International Monetary Fund during the 2008 financial crisis, said by email. “But it is news they must take into account in thinking about the effects of policy.”

Hall also explored the idea that some households are so strapped financially that they can’t borrow or tap savings in response to economic changes. In a 1982 paper with the economist Fredric Mishkin, Hall found that around 80% of households made spending decisions based on their expectations for the future “while the rest lived hand to mouth," the committee wrote.

“The prize is for research that pushes our understanding of macroeconomics from the bottom up, from families and firms making decisions over time, while looking ahead,” Ivan Werning, an economist at the Massachusetts Institute of Technology, said in an email.

Woodford analyzed how businesses make decisions Woodford’s research established that businesses make decisions about prices based on where they think interest rates will go in the future.

“If the business believes that its competitors’ prices and its own costs will increase, it is best to set a higher price than it would with the opposite expectation,” the Nobel committee wrote. “Businesses’ decisions are thus also governed by their expectations."

Therefore, central banks such as the US Federal Reserve, which set short-term interest rates, should provide “clear and credible communication about how they reason and what they plan to do." Central banks have responded to this insight by working harder to explain what they are doing.

The new Fed chair, Kevin Warsh, has said the trend toward such “forward guidance” went too far. He's trying to scale back how much the US central bank talks about its thinking and its intentions.

Woodford's research also offered guidance on how central banks should respond to energy price shocks — like the one that followed the US and Israeli attack on Iran in February — that can both feed inflation and send unemployment higher.

“Unlike the traditional Keynesian models, Woodford’s model recommends a cooling measure, such as increased interest rates, to avoid uncontrolled inflation,” the Nobel committee wrote. “His insight has made it possible to respond to recent supply shocks more effectively than during the oil crises of the 1970s.”

During the phone call broadcast at a news conference, Woodford said his work has stressed “the understanding of the people who are in the markets and making decisions about spending.”

Economics prize is last Nobel announcement this year

The economics prize is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. The central bank established it in 1968 as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes.

Nobel purists stress that the economics prize is technically not a Nobel Prize, but it is always presented together with the others on Dec. 10, the anniversary of Nobel’s death in 1896.

Nobel honors were announced last week in medicine, physics, chemistry, literature and peace.

Monday’s award was the second Nobel win for a Stanford University professor this year. Dr. Karl Deisseroth shared the medicine prize with Peter Hegemann and Georg Nagel for their work that led to a tool that uses light to help unravel how the brain works.

The prize money this year is 12 million Swedish kronor (about $1.2 million), whether for an individual, small group of laureates or organization.