Saudi mining investment law to deliver $64bn GDP boost

Saudi mining investment law to deliver $64bn GDP boost
Saudi mining investment law to deliver $64bn GDP boost

Thank you for reading the news about Saudi mining investment law to deliver $64bn GDP boost and now with the details

Jeddah - Yasmine El Tohamy - : One of the UAE’s best-known master developers, Meraas, is to be folded into the government-owned conglomerate Dubai Holding, the emirate’s media office said Tuesday.

The merger is “an effort to sustain and advance growth through a unified and integrated vision,” according to an official statement. It is in line with a directive from Sheikh Mohammed Bin Rashid Al-Maktoum, the ruler of Dubai and vice president of the UAE who owns both companies.

The merger comes as Dubai grapples with the economic downturn resulting from the coronavirus pandemic, which has hit business in the emirate and globally. The collapse in travel and tourism — and the slowdown in trade — have had a big effect on Dubai, which is the leisure and commercial capital of the Gulf.

The combined entity will continue to be run by Sheikh Ahmed Bin Saeed Al-Maktoum, the ruler’s uncle, who is also head of the Emirates aviation group.

A closer relationship between Meraas and Dubai Holding had been expected for some time since Sheikh Ahmed was put in charge of both companies in an executive reshuffle last year, but could signal a new wave of consolidation in the region under pressure from the pandemic fallout.

The statement said the merger would “build on gains and support Dubai’s global competitiveness.”

Meraas is the developer of some of Dubai’s most extravagant real estate and projects, like the Bluewaters hotel and leisure complex as well as other waterside developments. Dubai Holding is one of the emirate’s biggest conglomerates, owning the Tecom free zones and the Jumeirah hotels and leisure chain, in addition to a big property portfolio.

Some experts believe the pandemic will accelerate a trend toward consolidation across the Gulf. 

“The Dubai government is setting the tone for what needs to happen across the region,” Tarek Fadlallah, CEO of Nomura Asset Management in the Middle East, told Arab News.

“Leading from the top like this sends a positive message.”

Ali Maabereh, head of mergers and acquisitions at KPMG in Saudi Arabia, expected a wave of corporate activity in the Kingdom and across the region.

“The current pandemic is creating a lot of uncertainties and contradictions in what to expect after the dust settles,” he said. “The expected key impacts on companies are shortages of liquidity and working capital requirements. Though companies might be running a healthy profit and loss account, there will be significant pressure on working capital requirements.”

Some analysts believe Dubai is preparing for a round of debt renegotiation ahead of some big repayments due in the next three years. “Efforts to contain the coronavirus will cause Dubai’s economy to contract sharply, exacerbating overcapacity in key sectors and making it more difficult for the emirate’s government-related entities (GREs) to service their large debts,” Capital Economics, the London-based consultancy, said recently.

Dubai Holding’s debt levels are estimated to be a relatively small proportion of the $21 billion repayment falling due in the next three years, ahead of a significant total $30 billion of maturities due in 2023. There are no available estimates for Meraas’ liabilities.

These were the details of the news Saudi mining investment law to deliver $64bn GDP boost for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Saudi Arabia to allow Boeing 737 MAX to return to service