The Dubai Financial Market (DFM) has introduced the Omnibus Accounts structure to allow eligible investors to access investment opportunities for the benefit of multiple beneficiary owners. Regulated entities can now hold and trade securities on behalf of numerous beneficial owners through a single investor number. The availability of Omnibus Accounts enhances international investors’ access to diversified investment opportunities and meets the market accessibility and market quality requirements of various international index providers. The Dubai Central Securities Depository (Dubai CSD) has issued the rules for the accounts, which took effect on March 29, and has launched a registration process for interested eligible investors. This move is a significant milestone in developing the capital markets of Dubai and provides operational and cost efficiencies for asset management companies.

 In other news, the DFM announced a 41.7% rise in net profit, with revenues up by 19% in 2022 compared to the previous year, with foreign investors contributing 48.7% of trading activity. The DFM also attracted over one million investors from 212 nationalities.

Preliminary data from Bahrain’s Information and eGovernment Authority indicates that the country’s economy grew by 4.9% in 2022, marking the fastest pace of growth in a decade, propelled by a surge in non-oil growth. According to a statement from Bahrain’s Ministry of Finance, the non-oil sector expanded by 6.2%, surpassing the 5% growth target set under the government’s economic recovery plan launched in 2021 in response to the pandemic. Hospitality saw the highest growth rate at 13.9%, followed by government services at 6.7% and real estate and business activities at 5.5%. Other sectors that grew included trade activity at 5.4%, manufacturing at 4.9%, transportation and communications at 4.5%, financial corporations at 4.1%, and construction at 1.4%. The International Monetary Fund (IMF) projected a moderate pace of recovery while acknowledging headwinds from the slowing global economy, geopolitical tensions, and tightening global financial conditions. Although Bahrain’s oil GDP increased by 33.7% in nominal terms, the country still relies on hydrocarbon revenues to balance its books due to its high debt levels. 

The IMF estimates that Bahrain requires an oil price of around $122 per barrel, the highest among its neighbours, to balance its budget this year. Despite this, Bahrain’s Ministry of Finance reported that the country’s deficit dropped by 85% in February 2022, and the country reported a mid-year budget surplus of $88m, with revenues surging by 52% compared to the same period last year. In line with its Economic Recovery Plan, Bahrain seeks to launch strategic projects worth over $30bn, attract direct investment of $2.5bn, and implement a series of reforms to bolster public finances and non-oil growth, balance its budget, and stem government debt, including increasing VAT, offering permanent residence to some foreigners, and privatising some government assets. The Bahrain Economic Development Board (EDB), the country’s investment promotion agency, attracted a record $1.1bn in direct investment in 2022, expected to generate over 6,300 jobs in the country over the next three years, with investments from 88 companies in key sectors including financial services, ICT, logistics, manufacturing, and tourism.

EZDubai’s E-commerce Report in the MENA region’s third edition has disclosed that the total e-commerce market size of the MENA region reached $37 billion in 2022, reflecting double-digit growth from 2021 and a 32% compound annual growth rate between 2018 and 2022. The report was published in collaboration with Euromonitor International, the world’s leading provider of global business intelligence, market analysis, and consumer insights. The MENA region’s e-commerce growth is fueled by robust internet usage, a well-developed infrastructure, supportive policies, and a young, tech-savvy population. 

The UAE, Saudi Arabia, and Israel accounted for 72.1% of the total market size, with Israel leading the market due to its innovative economy and the rising demand for speedy delivery services. The report projects that the MENA e-commerce market size will reach $57 billion in 2026, with a compounded annual growth rate of 11% over the 2022-2026 period. The demand for online shopping services in the MENA region is expected to continue growing, with consumers in the UAE spending over 19% more in 2022 compared to the previous year, according to Majid Al Futtaim’s latest State of the UAE Retail Economy Q4 report.

On March 28, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, led the UAE Cabinet meeting at Qasr Al Watan, Abu Dhabi, where he approved 24 national initiatives aimed at doubling the UAE’s re-exports by 100% within seven years, supported by the country’s 50 commercial offices worldwide. Sheikh Mohammed also reviewed initiatives to attract global talent, including the UAE’s impressive ranking in the “Competent Senior Managers” category. The meeting examined the results of the Higher Commission Free Trade Negotiations and signed four international agreements with four countries.

 The UAE will host the International Union for Conservation of Nature World Conversation Congress (IUCN) in 2025, and the cabinet approved the reformation of the UAE Council for Digital Wellbeing and the UAE Genomics Council. The cabinet also approved new federal laws and ratified international agreements during the meeting.