Hello Smashi Business Readers!☀️

Here’s your quick dose of today’s top business headlines from the MENA region and beyond:

• Dubai property buyers will face a 6% increase in upfront costs starting February, potentially reshaping real estate trends in the emirate.

• Mohamed Alabbar’s Eagle Hills has announced a $6 billion investment in Georgia, aimed at driving economic growth.

• The UAE solidifies its leadership in MENA startup investments, emerging as the top destination for venture capital in 2024.

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Dubai Property Buyers Face 6% Extra Upfront Costs Starting February

📰 What is it about?

• Effective February 1, property buyers in Dubai opting for mortgages will need to cover an additional 6% upfront to finance the 4% Dubai Land Department (DLD) registration fee and 2% brokerage fee, as banks are no longer allowed to fund these costs.

  Key Details:

  • Mandatory DLD Fee: Buyers must pay 4% of the property price for registration.

  • Impact on Down Payments: Expats purchasing properties under AED 5M require a 20% down payment, while properties above AED 5M need 30% upfront.

  • Example Scenario: For a AED 1M property, buyers now need an extra AED 60,000 to cover fees.

💡 Why it matters?

1. Increased Financial Burden

• Buyers now need significantly more cash upfront, which may deter some from entering the property market.

• Expats, who already face higher down payment requirements, will feel the impact the most.

2. Shift in Buyer Preferences

• Off-Plan Properties Gain Appeal: Developers often offer flexible payment plans and may waive some DLD fees, making off-plan options more attractive.

• Secondary Market Impact: Existing properties may become less appealing as buyers look for cost-saving alternatives.

3. Developer Incentives Become Critical

• Many developers may respond by absorbing part or all of the DLD fees to maintain demand, especially in a competitive market.

🔜 What’s next?

For Buyers:

• Prepare for higher upfront costs by factoring in an additional 6% when calculating budgets.

• Explore off-plan properties for lower down payments and potential DLD waivers.

For Developers:

• Likely to introduce more incentives, such as fee waivers or extended payment plans, to attract buyers.

• May focus on promoting off-plan projects to capitalize on shifting buyer interest.

For the Market:

• Secondary Market Slowdown: Short-term impacts are expected as buyers adjust to the new rules.

• Long-Term Stabilization: Market activity may normalize as developers innovate and buyers adapt.

Sharjah Entrepreneurship Festival 2025 Set for February 1st and 2nd at SRTI Park

The Sharjah Entrepreneurship Festival (SEF) 2025 is scheduled for February 1-2 at SRTI Park, Sharjah. Organized by the Sharjah Entrepreneurship Center (Sheraa), the event aims to unite visionaries, investors, and innovators for two days of collaboration and inspiration.

SEF 2025 will feature over 150 startup pods in its Startup Town Zone, powered by du, providing a dynamic environment for emerging enterprises. Attendees can anticipate keynote speeches, workshops, and various activities designed to foster entrepreneurship.

The festival also emphasizes sustainability and wellness, offering zones dedicated to holistic well-being and responsible business practices.

With an expected attendance of around 12,000 participants, SEF 2025 continues to be a significant platform for entrepreneurial growth and networking in the UAE.

Smashi Business will be at the event to keep you updated on everything through our on-site coverage. Follow us here…

Markets

Mohamed Alabbar’s Eagle Hills to Invest $6 Billion in Georgia, Boosting Economic Growth

📰 What is it about?

• Abu Dhabi-based developer Eagle Hills, founded by Mohamed Alabbar, has announced a $6 billion investment in various projects across Georgia, following a Memorandum of Understanding (MoU) signed between Georgian Prime Minister Irakli Kobakhidze and UAE President Sheikh Mohamed bin Zayed Al Nahyan.

  Key Project Highlights:

  • Construction of homes, retail spaces, parks, schools, and commercial areas in Tbilisi, Batumi, and Gonio.

  • Aimed at stimulating economic development, creating jobs, and attracting foreign investment.

💡 Why it matters?

1. Strategic Economic Development

This partnership will:

• Accelerate infrastructure development in Georgia.

• Enhance tourism and urban growth in key cities.

• Attract further foreign direct investment to the region.

2. Expanding UAE-Georgia Relations

• AD Ports is also in talks for further logistics and transportation investments, building on their recent 60% acquisition of Tbilisi Dry Port, a critical hub in the Middle Corridor trade route.

• The UAE-Georgia economic agreement signed last June has laid the foundation for these transformative collaborations.

🔜 What’s next?

• Project Timelines: Eagle Hills will likely unveil detailed plans and timelines for developments in Tbilisi, Batumi, and Gonio.

• Logistics Expansion: Expect further announcements from AD Ports regarding its expanding role in Georgian logistics.

• Foreign Investment Boom: The UAE's involvement may inspire other nations to increase investments in Georgia, accelerating its economic transformation.

UAE Leads MENA in Startup Investments for 2024

What is happening?

• The UAE emerged as the top destination for startup investments in the MENA region in 2024, securing $1.1 billion across 207 transactions, a 15.4% year-on-year increase from 2023, according to Wamda’s annual report.

  • UAE’s Share: Represented 47.8% of the region’s total startup investments of $2.3 billion.

  • Investor Base: Included 89 foreign and 92 regional investors.

Why it matters:

1. Sector Dominance in the UAE

• Fintech: Top-performing sector with $265 million in investments.

• Web3: Second with $258 million, reflecting growing interest in blockchain and decentralized technologies.

• Proptech: Secured $197 million, highlighting strong demand for innovation in real estate.

2. Regional Trends

• Decline in Total Investments: MENA startup investments dropped 42% year-on-year, reaching $2.3 billionacross 610 transactions.

• Sector Leaders:

  • Fintech remained dominant with $700 million in investments.

  • Web3 and e-commerce followed at $260 million and $253 million, respectively.

• Early-Stage Focus: Early-stage investments accounted for $1.2 billion, outpacing late-stage funding, which saw $332 million across just 10 transactions.

What’s next?

• Future of Early-Stage Investments: Early-stage funding is increasingly attractive, offering high-growth potential.

• UAE’s Competitive Edge: With strong investor interest, the UAE will likely continue leading the MENA startup ecosystem, especially in fintech and emerging sectors like Web3.

• Data Discrepancies: Wamda and Magnitt reports differ significantly, with Wamda estimating UAE funding at $1.1 billion versus Magnitt’s $613 million, leaving room for further scrutiny.

• Regional Players: Saudi Arabia is also a rising player, having secured $750 million in startup investments according to Magnitt, setting up healthy competition in the region.

🔍In other news…

1. Saudi Arabia unveils the first five-star luxury train in the Middle East.

2. Curious if DeepSeek is actually better than ChatGPT? We asked both the same question.

3. Stefano Fallaha, CEO of Podeo, shares his thoughts on DeepSeek’s rise.

The Latest from the Smashi Business Studio

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Here’s to a productive week ahead! 💪

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