Gulf

1. Mubadala’s acquisitive year
2. The rich get richer
3. Saudi FDI stalls
4. Dubai property soars
5. Oman’s hydrogen dreams

The Gulf’s frugal consumer power.

Mubadala leads global SWF activity

Abu Dhabi’s Mubadala emerged as the world’s top sovereign investor in 2024. The fund deployed $29.2 billion across 52 deals — a 67% rise from the previous year, according to consultancy Global SWF. Its Gulf peers weren’t far behind: Abu Dhabi Investment Authority, ADQ, Saudi Arabia’s Public Investment Fund, and Qatar Investment Authority all ranked among the top 10 global dealmakers.

Allocations shifted significantly, with increased focus on real estate, technology, financial services, private equity, and private credit, while health care, industrials, and consumer sectors saw declines. Among the big telecom deals were PIF’s $3 billion acquisition of TAWAL, the Middle East’s largest tower operator, while spending on local AI companies and US startups ramped up. The space race is also heating up: Mubadala’s Space42 and PIF’s Neo Space Group are positioning their countries as emerging leaders in satellite industries.

Sovereign funds are expected to expand their operations in both developed and emerging markets, too. The Gulf freezones in Riyadh, Abu Dhabi, and Dubai may attract European, Asian, and Canadian funds “interested in club deals with regional” investors, according to Global SWF.

Billionaires on the rise

It’s been a good year for the Gulf’s wealthiest — markets lifted the net worth of billionaires while IPOs have created new ones. The UAE’s Abdulla Al Ghurair, whose fortune climbed 36% to $9.1 billion, saw the biggest growth in his wealth, driven by gains in Mashreq Bank and National Cement, according to Al Eqtisadiah. In Saudi Arabia, Prince Alwaleed bin Talal added $1 billion to his fortune. Meanwhile, massive demand for new stocks elevated health care executives Ammar and Mazen Fakeeh and media mogul Waleed Al Ibrahim to billionaire status. Saudi IPOs raised $4.1 billion across 16 listings in 2024, and the exchange expects a busy pipeline for 2025.

Saudi FDI inflows slow in Q3

The decline in Saudi Arabia’s foreign direct investment (FDI) in the third quarter, compared to a year earlier. FDI inflows for the first nine months of 2024 totaled $14.5 billion, just over halfway to the government’s $29 billion target for the year, according to the General Authority for Statistics. The kingdom aims to attract $100 billion annually by 2030 to drive economic diversification away from oil. The FDI drop comes as oil prices remain far below the $100-a-barrel break-even point the kingdom needs, while economic growth was projected at a tepid 1.5% in 2024. The outlook is improving, however, despite extended oil output cuts. Riyad Capital expects GDP growth of 4.8% this year.

Banner year for Dubai real estate

Dubai’s property sales surged nearly 30% in 2024 and are expected to grow another 20% this year as the city continues to attract wealthy buyers. Real estate transactions exceeded $141 billion last year, according to UAE brokerage W Capital. The city — home to around 4 million people — has benefited from the introduction of new residential visas and reforms that made it more appealing to live and work. Dubai is also a (relative) bargain: $1 million secures 980 square feet in prime districts, three to four times the space you’d get in global hotspots like London or New York, according to real estate consultancy Knight Frank’s 2024 Wealth Report.

SKorean firm invests in Omani ammonia

A South Korean company agreed to invest in an Omani ammonia project and buy $4.5 billion worth of the chemical in a long-term contract. LUPRO — which has green hydrogen and ammonia projects in Japan, Thailand, and the UAE — partnered with Bait Muscat for Development in the Duqm project in Oman’s southeast coast. The joint venture plans to produce 1 million tonnes of green hydrogen ammonia annually using electricity from a 2 gigawatt renewable-energy complex, and construction is slated to start this year.

Hydrogen has taken on a rainbow of colors in industry jargon: green (produced from renewable energy), black (from coal), and white (naturally occurring). Oman is focusing largely on green hydrogen. The country is targeting becoming the world’s sixth-largest hydrogen exporter by 2030. General Atlantic’s sustainable infrastructure arm Actis and its partner Fortescue could begin construction of their first green hydrogen project in Oman this year, Semafor has previously reported.

Join us for a world-class lineup of live journalism at the World Economic Forum 2025, where Semafor editors will engage with industry leaders to discuss key themes, including global finance, regulatory challenges, Africa’s growth, and the state of media.

Explore the schedule and request invitations to attend these sessions.

The Gulf may be synonymous with opulence, but a quiet revolution is underway: the rise of discount retailers and private-label brands. Shoppers in the UAE and Saudi Arabia are prioritizing deals, with “value” ranked as the top motivator for where they shop, according to consultancy Oliver Wyman. Nearly 80% of Saudi shoppers and two-thirds of UAE consumers regularly buy private-label products. The survey also found greater responsiveness to personalized promotions. The takeaway? A growing opportunity for retailers to cater to consumers across price points, signaling a shift from a market once dominated by brand-driven sales.

Meta is revamping its global policy team, with President Nick Clegg stepping down and being replaced by Joel Kaplan, his deputy and the company’s most prominent Republican, Semafor’s Liz Hoffman, Reed Albergotti, and Gina Chon scooped.

Meta’s political operation is now well placed for a Republican-dominated Washington.