Good morning Smashi Business Readers!

This is the last newsletter of 2024 and thank you for being a part of growth from merely five thousand subscribers to 30,000+ now. Meanwhile, as a new year dawns on us, the MENA and Gulf regions have also just started their journeys towards becoming “The New Europe”. Here’s a great read/summary of all things business in the region that took place in 2024.

For our stories, here are our picks:

1. Dubai's Property Market Hits Record AED 517 Billion in Sales for 2024

2. Pakistan Launches New, Faster Trade Route Linking China and UAE

3. Chinese Hypermarket WEMART Enters Saudi Market

Keep reading for more details.

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Dubai's Property Market Hits Record AED 517 Billion in Sales for 2024, Set for Further Growth

📰 What is it about?

• Dubai's real estate market has achieved a record AED 517 billion in property sales year-to-date as of December 27, 2024, reflecting a 28.9% increase compared to 2023. The market recorded 178,900 sales, a 38% year-on-year rise, marking its most active year. Total transaction volume, including mortgages and grants, reached AED 753.6 billion, up 35.8% year-on-year.

  • Key Highlights:

    • Mortgages: AED 185.8 billion across 35,700 transactions.

    • Grants: AED 50.9 billion from 9,300 transactions.

    • Quarterly High: 4Q 2024 saw record-breaking sales of AED 142.7 billion.

    • October Peak: Monthly sales peaked at AED 61.5 billion.

💡 Why it matters?

• Strengthening Dubai’s Economic Pillar: The property market is a major driver of Dubai's economy, reflecting investor confidence and sustained demand for real estate.

• Global Investment Magnet: The significant growth in sales and transaction volumes highlights Dubai's continued appeal to global investors, supported by economic stability and world-class infrastructure.

• Positive Market Sentiment: Robust sales and record-breaking quarterly performance indicate a thriving sector, driven by rising population, foreign investment, and increasing demand for luxury and affordable properties.

• Financial Sector Synergy: Real estate mortgages, valued at AED 185.8 billion, underline the strong integration of Dubai's property and financial markets.

🔜 What’s next?

• Projected Growth in 2025: Dubai's real estate sales are forecast to grow 10-15%, potentially reaching AED 600 billion, with total transactions exceeding AED 850 billion, according to W Capital.

• Continued Demand: Investor-friendly policies, Expo City developments, and population growth will sustain demand for residential and commercial properties.

• Innovation and Tech Adoption: Increased adoption of PropTech, sustainable construction, and digital solutions will drive efficiency and attract environmentally conscious buyers.

• Opportunities for Developers: Developers are likely to introduce innovative projects catering to both luxury buyers and middle-income investors to capitalize on market momentum.

Markets

Pakistan Launches Historic Trade Corridor Linking China and UAE via Khunjerab Pass

📰 What is it about?

• Pakistan’s National Logistics Corporation (NLC) has initiated its first-ever multimodal Transports Internationaux Routiers (TIR) operation, creating a direct trade route between China and the UAE through the Khunjerab Pass.

  • Journey Highlights:

    • Starting Point: Kashgar, China.

    • Transit Through Pakistan: Sost Dry Port and Karachi.

    • Destination: Jebel Ali Port, Dubai.

    • Time Efficiency: The route shortens transit time from 30 days by sea to just 10 days.

  The Khunjerab Pass, a key gateway in the China-Pakistan Economic Corridor (CPEC), now facilitates seamless trade for electronic goods and other commodities under the TIR system, reducing customs barriers.

💡 Why it matters?

• Strategic Regional Connectivity: This trade route strengthens Pakistan’s position as a pivotal hub in the Belt and Road Initiative (BRI), connecting China, South Asia, and the Middle East.

• Economic Growth for Pakistan: Boosts revenue for local economies, especially in Gilgit-Baltistan and Gwadar. Customs revenue at Sost Dry Port increased by 46% year-on-year during the first two quarters of FY2024-25.

• Efficiency and Accessibility: Year-round functionality of the Khunjerab Pass ensures reliable trade flow, bypassing weather disruptions.

• Expanding Trade Horizons: Opens new markets for Chinese goods in the Gulf region while promoting Pakistani exports like textiles and agricultural products.

🔜 What’s next?

• Scaling Operations: Expand the TIR system to include additional goods and destinations, enhancing trade volume.

• Local Development: Infrastructure investments in Gilgit-Baltistan and Gwadar could spur local job creation and economic activity.

• Strategic Alliances: Strengthening partnerships with China and Gulf countries to attract more investment into the CPEC framework.

• Revenue Optimization: Improve anti-smuggling measures and modernize customs facilities to maximize economic benefits.

• Diversification of Trade Routes: Utilize this success to develop additional routes linking Pakistan to Central Asia, the Middle East, and Europe.

Chinese Hypermarket WEMART Enters Saudi Market, Serving Chinese Expats and Asian Food Enthusiasts

📰 What is it about?

• Chinese hypermarket chain WEMART has opened its first branch in Saudi Arabia, marking its entry into the kingdom's retail sector. Located in Khurais Square, Riyadh, the hypermarket aims to cater to the growing community of Chinese expats and Asian food enthusiasts in Saudi Arabia by offering high-quality products and food sourced directly from its own farms.

  • Significance of the Launch:

    • Cultural Connection: Provides a sense of home for Chinese residents.

    • Product Diversity: Offers commodities from China and Asia, enhancing food choices in Saudi Arabia.

    • Market Expansion: Marks WEMART's growth into Saudi Arabia after its success in the UAE.

  Founded in 2006 in Dubai by Chinese entrepreneur Sun Jiansheng, WEMART has grown into a diversified enterprise spanning retail, e-commerce, farms, and logistics.

💡 Why it matters?

• Strengthening Sino-Saudi Economic Ties: The launch reflects increasing trade and cultural exchanges between China and Saudi Arabia, bolstered by their strategic partnership.

• Rising Demand for Asian Products: The presence of a large expatriate community in Saudi Arabia creates a robust market for Asian food and products, positioning WEMART as a key player.

• Competition in Saudi Retail: WEMART's entry challenges established players like Lulu Retail, signaling increased competition in the multicultural retail sector.

• Diversification of Saudi Market: Aligns with Saudi Arabia’s Vision 2030 by enhancing consumer choice and attracting international businesses to the kingdom.

🔜 What’s next?

• Expansion Plans: WEMART is expected to expand its footprint in Saudi Arabia by opening more branches in key cities to capitalize on the growing demand for Asian products.

• Enhanced Consumer Experience: The hypermarket could introduce exclusive product lines, loyalty programs, and online shopping platforms to attract a broader customer base.

• Partnerships and Local Integration: Potential collaborations with local suppliers and Saudi businesses may strengthen WEMART’s position and enhance its offerings.

• Competitive Landscape: Rivalries with established chains like Lulu Retail will likely drive innovation, better pricing, and improved customer services across the sector.

🔍In other news…

1. Saudi Arabia is reportedly considering the acquisition of approximately 100 Turkish-built KAAN fifth-generation fighter jets.

2. Spanish legend Rafael Nadal has expressed interest in establishing a branch of his renowned tennis academy in the kingdom.

3. Record AED 81 million revenues for RTA in number plate auction.

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