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Dubai’s Office Market Sees Unprecedented Uptake and Rental Surge Across Top Business Areas in Q3 2024

By
شمس سيف
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Dubai’s Office Market Sees Unprecedented Uptake and Rental Surge Across Top Business Areas in Q3 2024

Dubai’s commercial office market is reaching new heights, with unprecedented demand driving occupancy rates and rental growth across prime business districts, as detailed in Savills Q3 2024 Dubai Office Market report. Driven by a substantial rise in new business registrations and expansion activities by existing firms, including those in finance and technology sectors, the city’s real estate landscape is more competitive than ever, positioning Dubai as a top global business destination.

According to the report, over 24,000 new businesses were registered in the first half of 2024, marking a 5% year-on-year growth. This surge underscores the strong economic momentum fuelled by the Dubai Economic Agenda (D33) and highlights the emirate’s reputation as a hub for international trade and innovation. Key business areas such as DIFC, Downtown, and Business Bay now boast occupancy rates between 95% and 97% reflecting robust demand for high quality office spaces. 

Average Grade A rental values surged by 25% year-on-year, with specific locations like Business Bay and Downtown experiencing jumps of 44% and 36%, respectively. DIFC’s premier properties lead the market, reporting rent increases as high as 25% while new developments such as DIFC Square and Immersive Tower are set to add over 10 million square feet of premium office space by 2028. 

“Dubai’s office market growth underscores its appeal as a global business hub, bolstered by ease of setup, favourable tax conditions, and a strategic location,” said Toby Hall, Head of Commercial Agency at Savills Middle East. “Businesses are establishing or expanding their presence here, recognising the value of high-quality office spaces that support talent attraction and growth. This demand signals further market evolution in the years ahead.”

Paula Walshe, Director of Transactional Services at Savills Middle East, added, “The unprecedented rental increases and high occupancy rates demonstrate Dubai’s standing as a premier destination for global business expansion. We’re seeing strong interest from international firms, especially in finance and technology, prioritising flexible office spaces to meet their ambitious growth targets and align with Dubai’s strategic vision.”

In addition, the rise of hybrid working models has led to a growing demand for flexible workspaces, with companies opting for open-plan layouts and co-working solutions like those offered by Executive Centre and Cloud Spaces. These spaces are particularly attractive for startups and new entrants seeking flexible lease terms and a rapid operational setup. 

Demand for office space is concentrated in areas with prime offerings, yet more affordable options are also experiencing significant rental increases, as seen in Dubai Science Park and Dubai Investments Park, which recorded a 37% year-on-year rise. Expo City is emerging as a competitive option, offering high-quality facilities with strong transport links at a lower price point than the central business districts. 

The report projects that this demand will continue through the year as more businesses set up in Dubai to take advantage of its strategic location, supportive business environment, and high-quality infrastructure. 

For further insights and detailed analysis, download the full Q3 2024 Dubai Office Market report here.

How Trump could seek to influence The Fed

By
شمس سيف
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How Trump could seek to influence The Fed

The Fed is expected to cut interest rates again Thursday – this time by 25 basis points – amid a moderating inflation rate and a softening labor market.

But it’s the return of Donald Trump to the White House and concerns that he might seek significant influence over the central banks’ policy decisions that will be the main focus, warns the CEO of one of the world’s largest independent financial advisory and asset management organizations.

Nigel Green of deVere Group is speaking ahead of Fed Chair Jerome Powell’s end of meeting speech Thursday, at which markets have fully priced-in another rate cut.

He says: “There are fears that Trump is likely to reignite his campaign to influence the Federal Reserve’s decisions moving forward.

“He frequently criticized the Fed, particularly under Jerome Powell’s chairmanship, for not lowering interest rates more aggressively. In 2018 and 2019, he repeatedly voiced dissatisfaction, claiming that higher rates were a drag on the US economy and put the country at a competitive disadvantage in international markets.

“He even went as far as suggesting negative interest rates—a stance almost unheard of in the US.

“With inflation cooling but still elevated, Trump may argue that lower rates are necessary to fuel economic growth, particularly in the lead-up to the 2026 midterms.”

The now President-Elect Trump appointed four of the seven current Fed Board governors during his previous term, including the controversial re-nomination of Jerome Powell.

However, he also openly suggested firing Powell—a move he legally couldn’t enforce but used as leverage to influence Fed decisions. His strong preference for low-interest-rate advocates likely influenced his appointments, prioritizing growth and employment over strict inflation control.

“Should Powell remain at the Fed, Trump may again publicly challenge his decisions, possibly nominating governors who share his economic philosophy, with an eye on reducing Fed autonomy. He could also push for replacements more sympathetic to his economic policies if any positions open up,” notes the deVere Group CEO.

During his first term, Trump was concerned with the strength of the dollar, often calling for a weaker dollar to boost US exports. Though he didn’t manage to directly influence dollar policy, he openly pressured the Fed to cut rates, which would generally have a devaluing effect on the currency.

With trade at the forefront of his agenda, “Trump might pursue a weaker dollar to maintain a competitive edge, potentially through tactics that pressure the Fed into actions benefiting US trade,’ comments Nigel Green. “A lower dollar could boost American manufacturing and exports, while also helping to offset tariff impacts.”

His previous administration frequently engaged in discussions about limiting the Fed’s autonomy. Though he faced legal and political barriers, Trump’s vocal challenges to the Fed set a precedent for public criticism of an institution that traditionally operated independently from the executive branch.

“His return to the White House could lead to further efforts to limit Fed independence or increase scrutiny, particularly if inflation resurges or if monetary policy tightens. He may call for reforms that align Fed decisions more closely with the White House’s economic agenda, positioning this as an alignment of the Fed with national interests,” affirms the deVere CEO.

He concludes: “Trump’s approach to the Fed will likely mix familiar pressures for lower rates and personnel shifts, with an added emphasis on trade and dollar competitiveness.

“Although the Fed’s legal independence remains a limiting factor, Trump’s history of public statements and actions suggests he could be relentless in trying to sway monetary policy.”

AHRC Congratulates President-Elect Trump, Time to Reconcile, Work Together and Move Forward.

By
شمس سيف
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AHRC Congratulates President-Elect Trump, Time to Reconcile, Work Together and Move Forward.

The American Human Rights Council (AHRC-USA) and the community it proudly serves in Michigan and across the nation extend their congratulations to President-Elect Donald Trump and his VP JD Vance for their remarkable victory in this year’s presidential elections. This year’s elections were undoubtedly historic and exceptional. It is one presidential race that has been watched closely at home and abroad. AHRC congratulates all winning candidates for all electoral posts.

AHRC looks forward to the new administration fulfilling its promises. We urge inclusion and diversity in words and deeds. In addition, AHRC urges all elected officials to seize the opportunity to help unite the country. We cannot afford to have open-ended divisions.

Voters have chosen and voters have decided, and this is democracy. AHRC calls upon both the Democratic Party and the Republican Party to collaborate on solutions in the nation’s interests. AHRC urges all citizens, regardless of their political views and political party affiliations, to reconcile and unite to serve the public good.

Regarding foreign policy, we hope the new administration sets policy grounded in America’s democratic values and respect and commitment to international law and UN resolutions. AHRC hopes that Mr. Trump will help bring genuine peace and help put an end to the senseless wars in the Middle East and in the rest of the world. AHRC urges President Elect Trump to honor his promises to the Arab and Muslim American communities.

AHRC hopes that the new administration will put an end to the genocide in Gaza and the war on Lebanon. The US has the power and influence, political will was lacking with the current marginalized and ineffective administration.

“Even though there is a history of disappointments, we can’t be but optimistic and hopeful,” said Imad Hamad, AHRC Executive Director. “Mr. Trump reached out to the Muslim and Arab communities with promises to end the horrible violence and carnage in the Middle East, we hope he delivers on these promises,” added Hamad. “The fact that the election is over does not mean it is time to rest, it is time to remain engaged and to make sure President Trump delivers on his promises,” concluded Hamad.

“Candidate Biden in the 2020 election promised the Arab and Muslim American communities a foreign policy grounded in human rights and international law,” said Dr. Ihsan Alkhatib, associate professor of Political Science at Murray State University. “Instead, he delivered a US-sponsored genocide in Gaza and a horrible war on Lebanon,” added Alkhatib. “The policy of subserviently giving Netanyahu everything while not expecting or getting anything in return is going to change,” added Alkhatib.

Diriyah Company Signs Strategic Trade Travel Agreements for Diriyah, with Global Travel Partners Abercrombie & Kent​and Almosafer

By
شمس سيف
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Diriyah Company Signs Strategic Trade Travel Agreements for Diriyah, with Global Travel Partners Abercrombie & Kent​and Almosafer

Diriyah, The City of Earth, and the birthplace of the Kingdom of Saudi Arabia, projected to attract 50 million annual visits by the turn of the century, is enhancing its tourism profile through strategic collaborations with luxury travel company Abercrombie & Kent and Saudi travel platform Almosafer. These partnerships aim to elevate Diriyah as a premier global cultural and tourism destination.​

Under the agreements, signed at WTM 2024 in London, Diriyah Company and its travel partners will collaborate to promote Diriyah, The City of Earth, as a leading destination for global travelers looking to immerse themselves in history, heritage, culture and luxury. The collaborations will play a vital role in helping to attract and engage with growing numbers of domestic and international visitors as the mixed-use urban development comes to life over the coming years.

Diriyah Company’s travel trade agreements are designed to help position Diriyah as a must-visit destination on the global tourism map and a major part of Saudi Arabia’s rapidly growing tourism market.

Partnering with specialist agencies will help to further elevate Diriyah’s status as a premier travel destination through strategic partnerships, joint marketing initiatives, and a deep understanding of tourist preferences and trends.  It will lay the foundation for future lucrative commercial contracts, including the development of tourism products and commitments to mass travel from key source markets.​

Jerry Inzerillo, Group CEO of Diriyah Company, said: “We have ambitious plans for Diriyah, “The City of Earth,” to become a premier destination for visitors, seeking 50 million annual visits by 2030. However, we cannot achieve this alone. The travel trade agreements we have signed today with our partners Abercrombie & Kent and Almosafer will help inspire travelers from around the world to enjoy and celebrate what Diriyah has to offer through world-class experiences in hospitality, dining, retail, heritage, and entertainment.”​

Diriyah Company is participating in WTM 2024 to provide the travel industry with an in-depth look at its transformation journey. With plans to develop 40 luxury hotels, the Royal Diriyah Opera House, and the 20,000 seat multi-purpose Diriyah Arena, among many other attractions, Diriyah is set to become one of the greatest gathering places in the world, situated on the outskirts of the capital city of Riyadh.

Since opening the UNESCO World heritage site of At-Turaif and the premium dining destination of Bujairi Terrace at the end of 2022, Diriyah has welcomed over two million visits and will open its first hotel – the 134-room Luxury Collection Bab Samhan later this year.

Arab Health to celebrate 50th edition in 2025

By
شمس سيف
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Arab Health to celebrate 50th edition in 2025

 Arab Health, the Middle East’s largest and most important healthcare event and congress, will celebrate its 50th edition when it returns to the Dubai World Trade Centre (DWTC) from 27 – 30 January 2025. The show will attract an international audience under the theme of ‘Where the world of healthcare meets’.

Last year, record-breaking business deals exceeding AED9 billion were completed, along with record participation from 3,627 exhibitors and more than 58,000 visitors, which has increased year on year. 

Since its inception in 1975 with just over 40 exhibitors, Arab Health has grown into a globally recognised event. Initially focused on showcasing medical products, the exhibition has grown steadily, increasing regional and international participants throughout the 80s and ’90s before securing global recognition in the 2000s.

Today, Arab Health attracts an audience of leading healthcare figures and international exhibitors from around the world, with the 2025 edition expected to draw more than 3,800 exhibitors, many unveiling world-exclusive innovations in the healthcare sector, with visitor numbers expected to surpass 60,000.

The 2025 edition is expected to draw more than 3,800 exhibitors as a result of increased floor space, including utilising Al Mustaqbal Hall, with many unveiling world-exclusive innovations in the healthcare sector.

Solenne Singer, Vice President at Informa Markets, said: “As we celebrate the 50th anniversary of Arab Health, it is a fitting moment to reflect on the evolution of the UAE’s healthcare sector, which has developed alongside the nation’s growth over the past five decades. 

“Through strategic investments, the adoption of cutting-edge technologies, and international collaborations, the UAE has transformed its healthcare landscape, ensuring high-quality care for its citizens and positioning itself at the centre of medical excellence and innovation. 

“Arab Health has been at the heart of this journey, facilitating billions of dollars in deals in the last 50 years, fostering growth, knowledge exchange, and advancements that continue to shape the future of healthcare in the UAE.”

Underscoring the event’s commitment to innovation, the 50th-anniversary edition will see the debut of the World of Wellness and the Healthcare ESG conferences, which focus on the future of healthcare. Visitors will have the opportunity to explore cutting-edge wellness and sustainability initiatives, with presentations ranging from groundbreaking pharmaceutical developments to innovative health tourism initiatives aimed at fostering a healthier and more sustainable future. 

The Smart Hospital and Interoperability Zone, powered by Cityscape, will offer visitors an immersive experience of the future of healthcare. This pioneering showcase will feature demonstrations of innovative and sustainable healthcare technologies, highlighting how technologies can seamlessly integrate with state-of-the-art medical equipment to enhance the overall patient care environment.

The Transformation Zone will feature talks, product showcases, and the popular Innov8 Start-up competition. Last year, VitruvianMD won the competition and a cash prize of US$10,000 for their technology, which combines biomedical engineering with state-of-the-art artificial intelligence (AI). 

The Future Health Summit will return this year, bringing together global experts to address the topic of AI in action: Transforming Healthcare Delivery. The invite-only summit creates an opportunity for senior government officials and healthcare CEOs to network and gain insights into the forthcoming groundbreaking advancements in the industry. 

Ross Williams, Senior Exhibition Director, Informa Markets, said: “AI in healthcare, though still in its early stages, is showing immense promise. Research is focused on developing advanced algorithms that leverage deep learning and machine vision, enabling the automatic correlation of patient data with clinical insights.”

“Ultimately, AI has the potential to facilitate more timely and accurate diagnoses, improving patient outcomes, which is exactly what we want to address during the Future Health Summit,” he added.

Medical professionals attending Arab Health 2025 will have access to nine Continuing Medical Education (CME) accredited conferences, taking place at Conrad Dubai, including radiology, obstetrics and gynaecology, quality management, surgery, emergency medicine, infection control, public health, decontamination and sterilisation, and healthcare leadership. Orthopaedics will be a non-CME invite-only conference.

In addition, four new thought leadership non-CME accredited conferences will take place: EmpowHer: Women in Healthcare, Digital Health and AI, Healthcare Leadership, and  Investment.

An extended version of the Arab Health Village will return, designed to provide visitors to the show with a space to network in a more relaxed environment where food and beverages are available. The area will be open throughout show days and into the evening. 

Arab Health 2025 will be supported by various government entities, including the UAE Ministry of Health and Prevention, the Government of Dubai, the Dubai Health Authority, the Department of Health, and the Dubai Healthcare City Authority. 

For more information or to register for the event, please visit www.arabhealthonline.com.

xEnergy Elite: Eaton’s New Low Voltage Switchgear and Motor Control Solution for Enhanced Safety and Efficiency in the Industrial Sector

By
Sahfy Sahfy
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xEnergy Elite: Eaton’s New Low Voltage Switchgear and Motor Control Solution for Enhanced Safety and Efficiency in the Industrial Sector
xEnergy Elite: Eaton’s New Low Voltage Switchgear and Motor Control Solution for Enhanced Safety and Efficiency in the Industrial Sector

Intelligent power management company Eaton today announced the launch of its new xEnergy Elite low voltage motor control and power distribution centre for loads up to 7500 A and 690 VAC. It provides greater uptime and flexibility, with maintenance cost savings, for business-critical applications in oil and gas, mining, and other industrial environments.

The xEnergy Elite motor control centre (MCC) complies with the relevant International Electrotechnical Commission (IEC) standards and is designed for maximum power availability and protection of operating as well as maintenance staff. It incorporates advanced motor control and protection technologies that optimise performance while protecting personnel and equipment, for instance by minimising the dangers associated with an arc flash event beyond the requirements of IEC TR 61641. The MCC’s fully segregated dropper busbars, optional fully isolated main busbars and Elite patented contact system for withdrawable motor starters and energy feeders are specially designed to prevent an arc flash from occurring. 

The Elite contact system allows for operation while the compartment door is closed, increasing personnel safety. With the use of a key, the units can be placed in the disconnect, test or connected position. The incoming air circuit breaker (ACB) is equipped with Eaton’s unique Arc Flash Reduction Maintenance System™, which significantly reduces incident energy during maintenance. It is only active when required, thereby preserving the protection against overcurrent under normal operating conditions.   

The reliable and sturdy design of the xEnergy Elite MCC improves uptime and reduces the need for maintenance. Thanks to the unique rotating contact technology of the Elite drawer units, contact wear on the vertical busbar is reduced to an absolute minimum. This ensures that the electrical connections are ideally positioned even in the event of a short-circuit or a heavy starting load to avoid sparking. 

Since July 1, 2023, the use of Super Premium Efficiency motors (IE4) has become mandatory for motors with a rated output between 75 kW and 200 kW. The xEnergy Elite withdrawable motor starter units support the new utilisation categories for Premium Efficiency (IE3) and Super Premium Efficiency (IE4) motor switching and can be exchanged from the front without shutting down the system, enabling it to be serviced and expanded without interrupting production. This plug-and-play solution is tested for more than 1,000 mechanical operations, significantly higher than the IEC standard of 200.

The MCC’s small footprint offers increased flexibility based on high-density micro-drawer configurations. The busbars are virtually maintenance-free, and all functions can be accessed from the front of the switchgear, so that the need for rear access is greatly reduced (both with the main busbar located at the back and on top). As a result, xEnergy Elite can be 

placed against the wall (requiring only 5 cm of clearance for ventilation purposes), which can save up to 2 m2 per section, freeing up valuable floor space. Additionally, the system offers a shared main busbars solution, which further minimizes the footprint and reduces the amount of copper used.

Furthermore, the specific requirements of customers needing rear cable compartments can be met with the latest development introduced to the system, featuring busbars located on top.

“Given that motor failure may cause production downtime, costly repairs and serious safety issues for personnel, the powerful control and protection provided by xEnergy Elite is a core element of a dependable and safe system”, says Qasem Noureddin, Managing Director-Eaton Middle East.

EBRD and Quds Bank support small Palestinian businesses

By
Sahfy Sahfy
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EBRD and Quds Bank support small Palestinian businesses
EBRD and Quds Bank support small Palestinian businesses

The European Bank for Reconstruction and Development (EBRD) is supporting Palestinian micro, small and medium-sized enterprises (MSMEs) by providing a US$ 8 million loan to Quds Bank, one of the largest local banks in the West Bank and Gaza and an EBRD partner since 2019.

The Palestinian economy has been severely impacted by the war in Gaza, suffering an estimated 35 per cent contraction as of June 2024 and an unprecedented unemployment rate of more than 50 per cent. MSMEs account for more than 98 per cent of businesses in the West Bank and Gaza, generating over 60 per cent of gross domestic product (GDP), and have been among the firms most affected by the war.

The EBRD funds will be lent on to eligible private MSMEs in the West Bank to provide vital liquidity to maintain operations and contribute to building the resilience of the local private sector.

The facility builds on the EBRD’s past experience with Quds Bank, which includes a US$ 5 million credit line under the EBRD’s Covid-19 response in 2021 and more than US$ 36 million of trade finance transactions supported under the Bank’s Trade Facilitation Programme to date.

Mark Davis, EBRD Managing Director for the southern and eastern Mediterranean region, said: “We are very pleased to partner with Quds Bank once again to support the Palestinian economy in these challenging times. We hope that our loan to Quds Bank can support more MSMEs in the West Bank, helping them to weather current difficulties and emerge stronger.”

Dureid Jerab, Deputy Chairman of Quds Bank, said: “We are pleased to see our partnership with the EBRD deepen over the years and happy to be receiving an SME loan today. This loan will enable us to further support our MSME clients and help them navigate the current challenges they are going through.”

Since the start of its activities in the West Bank and Gaza in 2017, the EBRD has obtained approval for 29 transactions worth a total €155 million.

ATRC Entity Unveils SteerAI, New Tech Venture Set to Transform Industrial Vehicles into Autonomous Powerhouses

By
Sahfy Sahfy
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ATRC Entity Unveils SteerAI, New Tech Venture Set to Transform Industrial Vehicles into Autonomous Powerhouses
ATRC Entity Unveils SteerAI, New Tech Venture Set to Transform Industrial Vehicles into Autonomous Powerhouses

The Advanced Technology Research Council’s (ATRC) commercialization arm, VentureOne, has launched SteerAI, which offers an advanced mobility system powered by AI that can transform standard industrial vehicles into autonomous powerhouses.

Catering to both the logistics and defense sectors to begin, SteerAI uses a hardware kit, software stack, and fleet management system to allow autonomous ground vehicles to tackle complex missions with high precision and efficiency, saving time and resources while protecting human workforces. SteerAI’s technology was developed by experts from the Technology Innovation Institute (TII), the ATRC’s applied research arm.

H.E. Faisal Al Bannai, Adviser to the UAE President and Secretary General of ATRC, said, “The launch of SteerAI is a significant milestone in solidifying the UAE’s leadership in autonomous technology. At ATRC, our vision is to continuously push the boundaries of innovation, and SteerAI exemplifies how we are turning groundbreaking research into real-world solutions that drive tangible impact.” 

“We have not simply created an autonomous vehicle—we have created an autonomous vehicle’s ‘brain,’” said Dr. Najwa Aaraj, the CEO of TII. “The advanced navigation algorithms work with cutting-edge sensors as part of an efficient, modular system that can work on any vehicle, and that has the potential to transform the way we move.”

Autonomous vehicles powered by SteerAI’s system will be able to run consistently and precisely between navigation points with minimal downtime. The software stack works together with corresponding sensors to allow vehicles to respond swiftly to potential hazards, maneuver around obstacles, and operate seamlessly even in challenging environmental conditions and unmapped areas.

In addition to enabling fully autonomous mobility, SteerAI’s software also facilitates remote fleet management, providing mission planning and monitoring as well as data-driven analytics to ensure optimal vehicle deployment and performance. 

“SteerAI launch represents a major milestone in our journey of driving positive impact through the use of advanced technologies,” said Reda Nidhakou, the Acting CEO of VentureOne. “The mobility needs in logistics and defense are intense, complex, and costly. Our vehicle-agnostic autonomous system redefines operational efficiency and precision while protecting companies’ most valuable assets—their people. Our mission is to leverage technology to help our partners transform the way they operate.”

SteerAI is the second venture launched by VentureOne. AI71, which launched in November 2023, creates business solutions using TII’s Falcon generative AI models.

FedEx Drives Economic Impact Across the Middle East Through Large-Scale Investments

By
شمس سيف
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FedEx Drives Economic Impact Across the Middle East Through Large-Scale Investments

FedEx Corp. (NYSE: FDX) released its annual economic impact report, analyzing the company’s worldwide network and role in building prosperity in local communities during its 2024 fiscal year (FY 2024). Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study underscores the ‘FedEx Effect’—the impact FedEx has on accelerating the flow of goods and ideas that generate economic growth globally, including significant investments in the Middle East. 

“At FedEx, we have a vision to make supply chains smarter for everyone by leveraging advanced data and technology to better serve our customers and their customers, thereby extending our reach and impact,” said Raj Subramaniam, president and CEO, FedEx Corporation. “The ‘FedEx Effect’ represents our relentless commitment to excellence, economic growth, and the communities where we live and work.”

The report reveals that FedEx contributed more than US$85 billion in direct impact to the global economy in FY 2024, accounting for approximately 0.1% of the world’s total net economic output.  In the Middle East, Indian Subcontinent and Africa (MEISA), FedEx directly contributed 0.1% to the net economic output of the region’s Transportation, Storage, and Communications sector in 2024. In addition, FedEx indirectly contributed an estimated US$280 million to the region’s overall economy in FY 2024.

“At FedEx, we are committed to supporting the impressive growth and transformation happening across the Middle East,” said Kami Viswanathan, regional president, FedEx MEISA. “Our infrastructure and services in this region are designed to empower local businesses and connect them to global opportunities. By investing in seamless, multimodal logistics solutions and state-of-the-art facilities, we aim to enhance cross-border trade while contributing to overall economic and environmental progress across the region.”

A key highlight is the launch of the state-of-the-art FedEx hub at Dubai World Central (DWC) Airport in Dubai South, which marks the company’s long-term investment of more than US$350 million into the UAE economy through infrastructure and technological advancements in the facility. The 57,000-square-meter hub features automated sort systems that process packages more efficiently and accurately, sustainable technologies such as energy-efficient systems and electric charging stations for FedEx and employee vehicles, and a 170-square-meter cold storage area to accommodate temperature-sensitive shipments. These features position the hub to boost the aviation and logistics sectors while solidifying Dubai’s role as a critical center for regional and international trade. 

The company has also continued to expand its regional network with the signing of a Memorandum of Understanding to establish a regional logistics facility in Qatar’s free zones, and the enhancement of intercontinental services between Vietnam and the Middle East through a new flight service that offers faster transit time for importers in the UAE and Saudi Arabia. 

In addition, FedEx introduced new solutions to help SMEs and businesses in the Middle East elevate their shipping strategies and expand global trade opportunities. This includes the FedEx Less-than-Container Load Priority multimodal service, which utilizes an integrated ocean and road network to provide faster and cost-effective shipping from Asia Pacific to key Middle East markets. Meanwhile, through FedEx® Regional Economy and FedEx® Regional Economy Freight services, the company also offers deferred, cost-effective, day-definite road services for less urgent shipments within the UAE, Saudi Arabia, Bahrain, Kuwait, Oman, and Jordan.

FedEx also contributed to the region’s sustainability initiatives by adding electric vehicles to its UAE fleet in FY 2024 and introducing FedEx® Sustainability Insights, a tool which allows customers to estimate the carbon footprint of their shipments within the FedEx network, supporting their own emissions reporting. FedEx team members also drove positive social impact by giving back to their communities through projects in 13 cities across MEISA. For example, in Ramadan, 100 FedEx team members in the UAE and Egypt packed more than 2,300 food hampers for those in need. 

Find out more about the FedEx Effect on communities and economies across the Middle East in the FY 2024 FedEx Global Economic Impact Report at fedex.com/economicimpact.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

HC: We expect JUFO to preserve its market share and margins.

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شمس سيف
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HC: We expect JUFO to preserve its market share and margins.
  • We expect relative inflation easing to improve consumer demand and estimate JUFO’s volume to grow at a 2025–29e CAGR of c5%
  • Capitalizing on its leading dairy local market share, we expect JUFO to preserve its market share, margins, and increase exports. We estimate its 2025-29e EBITDA and EPS to grow at c19% and c24%, respectivel

In a recent report, HC Brokerage resumed their coverage of Juhayna Food Industries forecasting JUFO to preserve its market share and margins.

Pakinam El-Etriby, Consumers Analyst at HC commented that: “ JUFO navigating a challenging 2021–24 operating environment: In 2021, JUFO experienced a c3 pp y-o-y decline in gross profit margin (GPM) to c29% from a previous three-year average of c31%, impacted by the 2020 COVID-19 lockdowns, disrupting supply chains and energy and commodity prices. As economies began to reopen in 2021, the supply bottlenecks led to further inflationary pressures. In February 2022, the Russian-Ukrainian war worsened the situation, causing additional global supply chain disruptions, leading to higher commodities prices, with crude oil prices surging c40% y-o-y in 2022 after a c64% y-o-y increase in 2021, corn prices rising c19% in 2022 and c60% y-o-y in 2021, soybean prices increasing c13% y-o-y in 2022 and c44% y-o-y in 2021, sugar prices increasing by c5% y-o-y in 2022 and c39% y-o-y in 2021, and skimmed milk powdered (SMP) increasing c15% in 2022 and c23% y-o-y in 2021.  In 2023, while commodity prices began to normalize – with oil prices dropping by c17% y-o-y, corn c19%, soybean c9%, and SMP c31% – JUFO’s 2023 GPM remained below c30% due to the several EGP devaluation rounds in October 2022 of c19% and January 2023 of c18%, as JUFO imports more than c30% of its COGS, mainly packaging and SMP, and to a lesser extent concentrates. Nevertheless, in 1H24, JUFO’s GPM improved by c10 pp y-o-y to c35%, helped by the March 2024 economic reforms and the Ras El Hekma investment deal, allowing it to source its USD needs from banks at the official rate, c4% y-o-y lower SMP price, and higher exports margin from concentrates. JUFO’s concentrates revenue (c15% of 1H24 total revenue, up from c9% in 1H23) benefited from the global supply shortage of oranges (expected to last for three years) due to climate change and the March 2024 EGP devaluation, increasing its competitiveness and export margins.

“We forecast JUFO’s revenues to grow at a 2025–29e CAGR of c19% on higher volumes and prices: We expect a relative moderation in inflation in 2025 to a yearly average of c23% from c30% in 2024 to help consumer demand recover. We project JUFO’s volumes to grow at a CAGR of c5% and average selling prices at c13% over 2025–29e. In 2024e, we expect revenues to grow by c48% y-o-y to EGP23.9bn, largely due to a threefold y-o-y increase in concentrate exports to EGP3.24bn (c14% of total sales from c6% in 2023), partially hedging JUFO’s FX needs. In 2025e, we expect revenues to rise by c26% y-o-y to EGP30.0bn, mainly driven by a c25% y-o-y increase in blended selling prices to EGP61.7/liter and a c31% y-o-y increase in concentrates revenue to EGP4.70bn. Starting 2026e, we expect interest rate cuts, declining inflation, and salary adjustments to accelerate consumer demand recovery and drive revenue growth, leading us to estimate a 2025-29e revenue CAGR of c19%.” Pakinan added.

“We estimate JUFO’s EBITDA and EPS to grow at a 2025–29e CAGR of c19% and c24%, respectively, on healthy revenue growth and higher export rebates despite higher net interest expense: In the absence of any external shocks, we generally expect the company to pass additional costs onto consumers to preserve its margins. We expect JUFO’s GPM to expand to 32.5% in 2024e from 26.2% in 2023, despite higher transportation costs in 4Q24 due to the c17% increase in diesel price on 18 October. However, in 2025e, we project a slight c1 pp y-o-y decline to 31.4% and to increase slightly to c32% in 2026e. In 2024e, we forecast EBIT margin to expand by c7 pp y-o-y to 19.8% on the GPM expansion and c4x y-o-y higher export rebates to EGP392m, and project EBIT margin to average c19% over our 2025–29e forecast period, with export rebates growing at a 2025–29e CAGR of c17%. Accordingly, we estimate JUFO’s EBITDA to grow at a 2025–29e CAGR of c19%. Despite expected higher net interest expenses in 2024e and 2025e due to JUFO’s higher EGP-denominated debt – reporting a net debt of EGP2.14bn as of June 2024, up from EGP1.21bn as of 30 March 2024 and EGP150m as of December 2023 – we expect net profit margin (NPM) to expand by c5 pp y-o-y to 11.3% in 2024e, and 12.2% in 2025e. However, starting 2026e, we forecast a gradual increase in NPM to 14.0% by 2029e, driven by easing interest rates. We estimate JUFO’s EPS to grow at a 2025–29e CAGR of c24%.” Consumers Analyst concluded.

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