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UAE to Double National Economy to $816 Billion by 2030

The UAE aims through economic agreements to remove or reduce customs duties with a carefully selected group of markets. (WAM)
The UAE aims through economic agreements to remove or reduce customs duties with a carefully selected group of markets. (WAM)
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UAE to Double National Economy to $816 Billion by 2030

The UAE aims through economic agreements to remove or reduce customs duties with a carefully selected group of markets. (WAM)
The UAE aims through economic agreements to remove or reduce customs duties with a carefully selected group of markets. (WAM)

The Ministry of Economy has announced that the UAE will soon sign comprehensive economic partnership agreements (CEPA) with several countries.

It will also sign trade preference agreements with the member countries of the Organization of Islamic Cooperation in early 2023.

The ministry said that the new partnership agreements aim to enhance the role of international trade to double the size of the national economy by 2030.

The UAE development plans for the next 50 years are largely focused on trade.

By 2030, the country aims to double the size of its economy from 1.4 trillion dirhams ($381 billion) to 3 trillion dirhams ($816 billion) through greater trade openness.

Jumaa Muhammad Al Kait, Assistant Undersecretary for International Trade Affairs, said that the countries currently negotiating to conclude CEPA are: Indonesia, Colombia, and Turkey, in addition to several countries with which the initial terms of agreement are being agreed upon.

The UAE is signing CEPA agreements with the aim of removing or reducing customs duties bilaterally with carefully selected markets of strategic importance regionally and globally.

Abdullah Al Saleh, Under-Secretary of the Ministry of Economy, pointed out that the trade preference system is the selection of a group of targeted goods, according to which the state obtains the advantage of reducing customs tariffs while exporting its national products to the markets of those countries.

He explained that the most important feature of this new system is to grant the UAE customs discounts on a wide and selected range of goods.

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Business

BP Announces 86% Drop in Annual Net Profit, Shocks Shareholders by Suspending Buybacks Program

FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
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BP Announces 86% Drop in Annual Net Profit, Shocks Shareholders by Suspending Buybacks Program

FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo

British oil giant BP announced Tuesday a sharp 86% drop in annual net profit and a surprise decision to suspend the entire share buyback program to save cash and trim debts.

The financial setback comes at a sensitive time, as the company prepares to welcome its new CEO, Meg O'Neill, in April and while it hopes to strengthen the balance sheet which is hit by lower crude prices and a huge write-down linked to its green energy transition.

Profit after tax dropped to $55 million last year from $381 million a year earlier, BP said in a statement.

The company said the annual results included an impairment totaling around $4 billion linked to its “transition businesses in the gas and low carbon energy segment.”

It added that its annual performance was “delivered against a weaker oil price environment.”

Underlying earnings, which strip out some energy price movements and one-off charges, fell 16% to $7.5 billion last year, slightly below the market expectations of $7.58 billion.

Meanwhile, BP surprised shareholders by a decision to suspend its share buyback program, as the company intensifies its efforts to shore up its balance sheet.

BP said it would “fully allocate excess cash” to cutting its $22 billion debt pile, acknowledging that “urgency” was needed to revive the fortunes of one of the UK’s best-known companies.

The move sent the company’s shares down more than 5% in London, to become one of the worst performers in the pan-European STOXX 600 index.

Carol Howle, BP interim CEO, said in a statement, “We have made progress against our four primary targets - growing cash flow and returns, reducing costs, and strengthening the balance sheet - but know there is more work to be done, and we are clear on the urgency to deliver.”

Internal factors were not alone responsible for the company’s decline in net profit, as BP said its performance was driven by a weaker oil price environment that clouded 2025.

Energy prices have been under pressure on concerns that US President Donald Trump's tariffs will crimp economic growth.

The international oil price benchmark, Brent North Sea crude, was steady Tuesday at $69 per barrel.

Contrary to BP, British rival Shell last week said its net profit rose 11% last year as higher volumes and lower costs helped to offset falling oil and gas prices.

Profit after tax climbed to $17.84 billion in 2025 from $16.1 billion a year earlier.

Analysts had raised the prospect of European oil majors' buyback programs shrinking due to lower oil and gas prices. Indeed, Norway's Equinor slashed its buyback program by 70% last week.

Meg O'Neill is taking over as BP's chief executive in April, becoming the first woman to lead an oil major. Her appointment comes following Murray Auchincloss’ decision to step down late last year.

O'Neill, an American who spent 23 years working for ExxonMobil, is also the first external candidate to be appointed CEO of BP in the group's 116-year history.

She has led the Australian group Woodside Energy since April 2021.

Carole Howle, who has served as interim CEO since Auchincloss unexpectedly stepped down in December, said on Tuesday, “We look forward to Meg O'Neill joining as CEO in April as we accelerate our progress to build a simpler, stronger and more valuable BP for the future.”

“We can and will do better for our shareholders,” she added as the group suspended share buybacks.

That news hit BP's share price, which shed 5% in Tuesday’s morning trading in London.

Business

‘AlUla Manifesto’ Ends Era of ‘Economic Dependency’

Group photo of participants at the Conference for Emerging Market Economies held in AlUla. X
Group photo of participants at the Conference for Emerging Market Economies held in AlUla. X
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‘AlUla Manifesto’ Ends Era of ‘Economic Dependency’

Group photo of participants at the Conference for Emerging Market Economies held in AlUla. X
Group photo of participants at the Conference for Emerging Market Economies held in AlUla. X

A joint statement issued by Mohammed Aljadaan, the Saudi Minister of Finance, and International Monetary Fund (IMF) Managing Director Dr. Kristalina Georgieva following the second annual Conference for Emerging Market Economies held in AlUla could be described as the “AlUla Manifesto.”

A manifesto is a public, written declaration of intentions, and acts as a guide for action. At the heart of AlUla, this statement was not merely words; it was a “charter” laying out a roadmap to end the era of “economic dependency” and to establish a new phase in which emerging economies are the leaders, not the followers.

For an in-depth analysis of the outputs of this “manifesto,” a fundamental shift is revealed:

Emerging economies are no longer the “weak link” groaning under the weight of crises in advanced countries; rather, they have transformed into a “safety valve” now driving 70 percent of global growth.

The conference highlighted the exceptional resilience of emerging economies in the face of geopolitical storms, while issuing a firm warning that “this is no time for complacency.”

The closing statement issued by Aljadaan and Georgieva stressed that the conference, in its second edition, has “reaffirmed the value of a dedicated global forum focused on the shared challenges, opportunities, and aspirations of emerging market economies.”

They said “discussions focused on how emerging markets can navigate a global environment marked by persistent uncertainty, geopolitical shifts, evolving trade patterns, and rapid technological change.”

“These transformative trends highlight the urgency of strengthening policy frameworks and institutions to support resilience and leverage opportunities ahead,” they added.

According to Aljadaan and Georgieva, “the experience across many emerging markets shows that credible policy frameworks and institutional upgrades have helped achieve better inflation outcomes, maintain financial stability, and preserve market access, even amid heightened uncertainty.”

Aljadaan and Georgieva in the closing session of the conference. X

The joint statement also stressed that the real challenge is moving to the next phase of reforms that deliver higher, more sustained, and more job-rich growth.

“Unleashing the private sector will be central to this effort, including through deepening financial markets, reducing barriers to entrepreneurship and investment, and harnessing artificial intelligence by investing in digital infrastructure and equipping young people with skills necessary to thrive in the evolving global job market,” it said.

The conference also sent a message that in a world of shifting trade and investment patterns, deeper intra-regional and inter-regional integration offers big opportunities.

“Boosting trade and strengthening regional cooperation remain critical for emerging markets as they adapt to the changing global economic landscape,” said Aljadaan and Georgieva.

The Saudi minister and the IMF managing director also wrote an analysis published by “Project Syndicate” that said: “It used to be that when advanced economies sneezed, emerging markets caught a cold.”

“That is no longer true,” they added.

According to the analysis, “following recent global shocks, such as the post-pandemic inflation surge and a new wave of tariffs, emerging markets have held up well. Inflation has continued to slow, currencies have generally retained their value, and debt issuance costs have remained at manageable levels.”

But Aljadaan and Georgieva warned that “while emerging markets have made great strides in improving their policy frameworks and enhancing credibility, this is no time for complacency.”

They called for reforms in a turbulent world and urged policymakers to position their economies to take advantage of the potential productivity gains from AI. “Saudi Arabia, India, and other members of the Gulf Cooperation Council, for example, have unveiled impressive infrastructure investments that will lay the foundation for AI adoption for decades to come.”

They concluded their statement by saying that emerging market economies are coming together to discuss how they can leverage their growing scale and build on their hard-won resilience.

Business

PIF Forum Yields $16 Bn in MoUs

Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
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PIF Forum Yields $16 Bn in MoUs

Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)

Saudi Arabia’s Public Investment Fund (PIF) closed the fourth edition of its Private Sector Forum with a slate of deals that underscored its growing pull with investors, announcing the signing of more than 135 memorandums of understanding worth over 60 billion riyals (about $16 billion).

The agreements reflect rising confidence in the Saudi business climate and the fund’s ability to generate high-quality investment opportunities that attract both local and foreign capital.

The forum’s final day opened with a discussion on flexibility, risk reduction, and innovative financing, focusing on how to turn strategies into bankable projects and investment opportunities that can draw in the private sector and deepen its role in the economy.

Speakers highlighted the fund’s central role in enabling and developing strategic sectors, investing in large-scale projects that help create a more attractive business environment.

These efforts aim to strengthen participation by the domestic private sector, including small and medium-sized enterprises, while also drawing foreign investment.

In a session on the Saudi sovereign approach to value creation, Raid Ismail, head of direct investments for the Middle East and North Africa at PIF, outlined the “Fund Way” methodology launched in 2019 to boost economic value across portfolio companies.

The approach is built on independent governance and a clear operating framework.

Ismail said the fund remains focused on delivering economic and social impact and sustainable growth across all its investments.

He traced PIF’s investment journey, from selecting priority sectors and forming partnerships with the private sector, to establishing companies, strengthening their governance and operational efficiency, and ultimately exiting investments.

Artificial intelligence featured prominently in the discussions. Tareq Amin, chief executive of Humain, said the company’s approach to AI applications is rooted in rethinking how problems are solved and how organizations prepare for the future.

He noted that Saudi Arabia has strong AI infrastructure, suitable human capital, and ample energy resources, and highlighted the generative AI operating systems and applications the company is developing.

Another panel focused on local content and its impact on the private sector, stressing the importance of building high-quality local content to support a strong national economy, accelerate diversification, and sustain growth.

The discussion also highlighted Saudi Arabia’s efforts to develop policies and regulations that encourage higher local content.

Panelists said increasing local content helps raise the private sector’s contribution to gross domestic product, reduce reliance on foreign supply chains, develop national industries and products, improve competitiveness, expand into new markets, and create jobs.

The session also highlighted PIF’s role in boosting local content through a range of programs and initiatives, including the Musahama local content development program, contractor financing, the industrial accelerator, supplier development, the private sector platform, and the Musahama design competition.

Spending by the fund and its portfolio companies on local content exceeded 590 billion riyals between 2020 and 2024.

Financing solutions were another key theme, with discussions on how to develop funding tools aligned with Saudi Arabia’s economic growth and ensure access to finance for large projects, small and medium-sized enterprises, and entrepreneurs.

Over the past five years, PIF has helped unlock priority strategic sectors across the kingdom.

It invested about 750 billion riyals domestically in new projects between 2021 and 2025. It contributed a cumulative 910 billion riyals ($242.6 billion) to Saudi Arabia’s real non-oil GDP between 2021 and 2024, accounting for around 10% of non-oil GDP in 2024.

The fourth edition of the forum builds on the momentum of previous years. Attendance has tripled since 2023, rising from 4,000 participants to 12,000 in 2025, while the number of exhibition booths by PIF portfolio companies more than doubled to over 100.