Good Morning Smashi Business Readers!

In a historic achievement, the UAE has surpassed AED 2.8 trillion in foreign trade for 2024, reflecting its growing global economic presence. Meanwhile, Dubai Aerospace Enterprise reports a strong 2024 performance, with key aircraft acquisitions and lease deals driving its market leadership. On the labor front, Saudi Arabia saw a decline in national unemployment to 7.8% in Q3 2024, with notable growth in women’s workforce participation, signaling progress in gender inclusion.

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UAE Achieves Record AED 2.8 Trillion in Foreign Trade in 2024

📰 What is it about?

• Historic Trade Milestone: The UAE's foreign trade exceeded AED 2.8 trillion in 2024, the highest in its history.

• Cabinet Reflection: In the first 2025 meeting, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the UAE Cabinet highlighted 2024 as a record-breaking year for economic and developmental achievements.

• Key Indicators:

  • AED 130 billion in Foreign Direct Investment (FDI).

  • AED 190 billion in industrial exports.

  • Over 200,000 new companies registered.

💡 Why it matters?

• Global Economic Influence: The record trade and investment figures underscore the UAE’s position as a global economic hub.

• Support for Entrepreneurs: Emirati citizens launched 25,000 SMEs, reflecting the government's success in fostering entrepreneurship.

• Job Creation: Private-sector employment among Emiratis surged by 350%, with 131,000 nationals employed, thanks to initiatives like the National Nafis Program.

• Sectoral Growth: Aviation and tourism recorded significant numbers, with 150 million airport passengers and over 30 million tourists in 2024.

• Modernized Governance: 80% of the country’s legal framework was updated to support economic and social development.

🔜 What’s next?

• Continued Growth: Sheikh Mohammed pledged 2025 would bring even greater achievements for the UAE.

• Global Partnerships: The UAE will build on the 140 international agreements signed in 2024 across fields like AI, security, and humanitarian efforts.

• Support for Innovation: New projects and initiatives will continue to attract global talent and investment.

• Enhanced Legal Framework: Legislative reforms are expected to further ease business operations and support sustainable development.

Markets

Dubai Aerospace Enterprise Reports Robust 2024 Performance with Major Acquisitions and Deals

📰 What is it about?

• Aircraft Transactions:

  • Acquired 83 aircraft (30 owned, 53 managed).

  • Sold 68 aircraft (19 owned, 49 managed).

• Leasing Activity: Signed 233 lease transactions, including agreements for 190 owned and 43 managed aircraft.

• New Leases: Placed 17 Boeing 737 MAX aircraft with Turkish Airlines, Eastar Jet, and Hainan Airlines.

• Major Purchases: Finalized agreements to acquire 36 aircraft worth $1.6 billion.

💡 Why it matters?

• Strengthened Market Position: DAE Capital is now among the top ten global aircraft lessors, solidifying Dubai's role as a global aviation hub.

• Engineering Advancements:

  • Recorded 1.5 million man-hours and over 300 aircraft checks.

  • Expanded hangar capacity by 30%, adding a total of 22 bays, including one A380-capable bay.

• Innovative Financing: Issued a $497.2 million aircraft asset-backed securities bond and secured a five-year AED2.75 billion term loan, boosting financial stability.

• Credit Upgrades: Received credit rating upgrades to BBB (Fitch) and Baa2 (Moody’s), reflecting financial strength and operational reliability.

• Industry Partnerships: Enhanced collaboration with Joramco and Spirit AeroSystems, introducing new engineering services.

🔜 What’s next?

• Restructuring: Volocopter plans to finalise its restructuring by February 2025 while seeking new investors.

• Neom’s Contingency: Neom may need to explore alternative air taxi providers if Volocopter’s financial issues persist.

• Industry Watch: Competitors like Joby Aviation and Archer Aviation are also advancing, with Gulf nations remaining key markets for eVTOL adoption.

• Technology Progress: Despite challenges, Volocopter's progress in certification and test flights could help it maintain relevance in the industry.

What is an eVTOL?

• Continued Growth: The acquisitions, long-term leases, and partnerships position DAE for sustained expansion in 2025.

• Engineering Excellence: With increased hangar capacity, DAE Engineering is poised to handle more complex projects and larger fleets.

• Global Expansion: Strategic investments and strengthened credit ratings will enable DAE to expand its global leasing and MRO (Maintenance, Repair, and Overhaul) services.

• Innovative Financing Models: The company may leverage its successful ABS issuance to attract new clients and enhance managed assets.

Saudi Unemployment Drops to 7.8% in Q3 2024, Women's Workforce Participation Grows

📰 What is it about?

• Saudi Unemployment Rate: Unemployment among Saudi nationals decreased to 7.8% in Q3 2024, down from 8.8% in Q3 2023, but up from 7.1% in Q2 2024.

• Overall Unemployment: The overall unemployment rate (including expatriates) rose to 3.7% in Q3 2024 from 3.3% in the previous quarter, but remained lower than 4.2% in Q3 2023.

• Women in the Workforce: Female labor force participation reached 36.2%, an increase from 35.4% in Q3 2023. However, unemployment among Saudi women rose slightly to 13.6% from 12.8% in Q2 2024, although it was down from 16.6% a year ago.

• Male Labor Force: The labor force participation of Saudi men increased to 66.9%, up from 65.7% in Q3 2023.

💡 Why it matters?

• Labor Market Trends: The decline in Saudi national unemployment highlights ongoing progress in reducing joblessness, despite a quarter-to-quarter increase.

• Women's Economic Empowerment: A continued increase in women’s workforce participation shows steady progress in gender inclusivity in the labor market.

• Economic Health: While unemployment remains relatively low, the slight rise in overall unemployment and a reduction in foreign direct investment may signal challenges in job creation and economic growth.

• Wider Economic Impact: Unemployment data, particularly among women, aligns with broader national development goals under Saudi Vision 2030 to diversify the economy and promote private-sector employment.

🔜 What’s next?

• Sustained Investments: Adnoc aims to continue investing in UAE-based facilities, suppliers, and private-sector job creation over the next five years.

• Emiratisation Focus: The initiative will prioritize creating more private-sector opportunities for UAE nationals.

• Supply Chain Expansion: Developing critical supply-chain functions within the UAE to achieve self-reliance in the oil and gas industry.

• Increased Collaborations: Partnerships with local businesses and suppliers will remain a cornerstone of the programme.

In-Country Value Programme Highlights

• Job Creation Initiatives: Continued focus on reducing unemployment through Vision 2030 programs, including the expansion of the private sector and enhanced Emiratisation efforts.

• Gender Equality in the Workforce: Programs to address the rising unemployment rate among Saudi women may be emphasized to ensure continued progress.

• Economic Diversification: Efforts to attract more foreign direct investment and diversify the economy will be crucial in driving job creation and reducing unemployment rates.

• Economic Growth Focus: Despite a lower GDP growth forecast from the IMF, the Kingdom will likely continue pushing for structural reforms to boost economic resilience and job opportunities.

🔍In other news…

1. Dubai’s RTA managed 2.5 million passengers on new year’s eve.

2. Space42, a UAE-based leader in satellite technology, will launch the Thuraya 4 telecommunications satellite into orbit, whic is built by Airbus and launched by Musk’s SpaceX Falcon 9 rocket.

3. Former Saudi footballer Majed Al-Jamaan is officially the new CEO of Al-Nassr Club!

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