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- Tensions Delay Egypt's Mega Museum; Rattle Middle East Markets; UAE Posts 4% Growth on Non-Oil Boom
Tensions Delay Egypt's Mega Museum; Rattle Middle East Markets; UAE Posts 4% Growth on Non-Oil Boom
Monday, June 16, 2025
Happy Monday everyone!
Emirati billionaire Khalaf Al Habtoor called for an end to the Israel-Iran conflict, urging both nations to choose peace over war: “With all sincerity and love, I raise a call from my heart to the leaders and people of Iran and Israel, to stop the language of war, and to replace it with the language of reason, compassion and humanity.”
Our main stories for today are: Egypt has postponed the long-awaited opening of the $1 billion Grand Egyptian Museum due to escalating Israel-Iran tensions. The same conflict rattled investor confidence, sending Gulf stock markets into a sharp decline on Sunday. Yet amid the turmoil, the UAE reported a 4% economic expansion in 2024, reaching $483.6 billion in real GDP — largely driven by its non-oil sectors.
But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.
Egypt Delays Grand Egyptian Museum Opening Amid Regional Tensions
What is it about?
Egypt has postponed the long-awaited inauguration of the $1 billion Grand Egyptian Museum (GEM), originally scheduled for July 3, citing “current regional developments,” particularly after the uncalled for attack by Israel over Iran, raising a conflict which has entered day 4 today.
The Ministry of Tourism confirmed the event will now take place in the fourth quarter of 2025, though no new date has been set.
Located just a mile from the Giza Pyramids, GEM is expected to be a game-changing attraction for Egypt’s tourism sector, aiming to welcome 5 million visitors annually.
The delay also affects coordinated plans for the revamped Giza Pyramids experience, which included a new visitor entry gate, upgraded facilities, and a modernized, car-free transport network across the plateau.
Why it matters
The Grand Egyptian Museum is the largest archaeological museum in the world and a key pillar in Egypt’s plan to double annual tourist numbers to 30 million within a decade.
The museum’s inauguration was expected to draw global attention and significant international participation, including invited heads of state.
The nearby $30 million overhaul of the Giza Plateau, managed by Orascom Pyramids Entertainment, is already transforming visitor experience — offering hop-on-hop-off buses, fine dining, and regulated access to curb scams and overcharging.
Despite a 24% rise in tourism in April 2025, concerns remain about how regional instability could impact Egypt’s ability to sustain momentum.
What’s next
The soft launch of the new pyramids experience is ongoing, with improvements being made ahead of the full rollout later this year.
Authorities are working with Orascom to curb aggressive hawkers and unlicensed animal rides, aiming to make the area more tourist-friendly.
A new opening date for GEM is expected to be announced in the coming months, depending on regional security conditions and international travel sentiment.
Egypt’s broader tourism ambitions remain intact, with officials stressing that both GEM and the revamped Giza Plateau will be cornerstones of the country’s long-term growth strategy.
Markets
EGX 30 | 31,016.00 | –4.60% |
DFMGI | 5,467.1 | Closed |
ADX | 9,693.79 | Closed |
Tadawul | 10,731.59 | –1.01% |
Middle East Markets Slide as Israel-Iran Conflict Rattles Investors
What is it about?
Stock markets across the Middle East fell on Sunday, hit by escalating military confrontation between Israel and Iran.
Saudi Arabia’s TASI dropped 1.01% by mid-afternoon, while Qatar (-3.2%) and Kuwait (-3.37%) saw steeper losses after plunging over 4% earlier in the day.
Egypt’s EGX 30 fell 5.12% amid regional fears and disrupted gas supply from Israel. Oman (-0.87%) and Bahrain (-0.81%) also closed lower.
Why it matters
The volatility underscores growing investor anxiety about potential spillover effects from the Israel-Iran conflict into the broader MENA region.
The GCC is geographically close to the conflict zone and faces risks to tourism, oil output, and shipping routes, especially if hostilities escalate.
Egypt’s sharp market decline also reflects energy supply vulnerability, with Israeli gas exports disrupted amid the strikes.
Global markets mirrored the panic: the Dow, Nasdaq, and S&P 500 all closed down on Friday, as did major indices in Asia and Europe.
Analysts say that unless the war widens, the direct impact on GCC economies may remain limited in the near term.
What’s next
Investors are watching closely for any signs of de-escalation or further escalation, which could determine the pace of recovery across regional markets.
Oil prices are rising, prompting inflation fears and causing shipping disruptions, as some tankers reroute to avoid conflict zones.
Financial analysts caution that policy uncertainty and energy risks are likely to keep markets volatile in the short term.
Despite the current dip, past regional conflicts suggest markets can rebound quickly if geopolitical tensions ease.
UAE Economy Grows 4% in 2024 to $483.6B, Led by Non-Oil Sectors
What is it about?
The UAE’s real GDP grew by 4% in 2024, reaching $483.6 billion (AED 1.8 trillion), according to official data from the Federal Competitiveness and Statistics Centre (FCSC).
The non-oil economy expanded by 5% to $365.4 billion, making up over 75% of total GDP, while oil-related activities contributed $118.2 billion.
Key non-oil sectors included trade (16.8%), manufacturing (13.5%), financial services (13.2%), construction (11.7%), and real estate (7.8%).
Why it matters
The figures reflect the UAE’s strong momentum in economic diversification, a central pillar of its long-term development strategy.
Transport and storage was the fastest-growing sector (+9.6%), driven by a 10% surge in airport passenger traffic to nearly 148 million travelers.
Construction (+8.4%) and financial services (+7%) showed robust growth, underscoring the UAE’s ongoing infrastructure and financial sector expansion.
Despite the overall growth, May’s S&P Global PMI revealed a slowdown in non-oil private sector growth, amid global uncertainties and US trade policy impacts.
What’s next
The UAE aims to expand GDP to $816.9 billion (AED 3 trillion) within the next decade, anchored in sustainable development and tech-driven transformation.
With global headwinds rising, policymakers may intensify support for strategic sectors such as logistics, tourism, and green energy to maintain momentum.
Continued investment in urban development and infrastructure is likely to boost construction, transport, and hospitality in the coming years.
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