👋 Good morning, Smashi Business Readers!

Today, we spotlight the UAE’s rising status as a global haven for the ultra-wealthy, with billionaire wealth soaring by nearly 40% in the region, according to UBS. In Saudi Arabia, Nice One, a leader in beauty e-commerce, gears up for a transformative IPO, reflecting the Kingdom's dynamic digital economy. Meanwhile, OPEC+ takes a cautious stance, maintaining production cuts as it grapples with fragile global oil demand.

Dive into these stories shaping the MENA region’s economic landscape!

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🌍💰 The World’s Wealthiest Flock to the UAE for Growth: UBS Report

📰 What is it about?

• UAE's billionaire boom: Wealth held by UAE billionaires surged 39.5% to $138.7 billion in 2024, with the number of billionaires rising to 18, according to UBS.

• A global trend of billionaire emigration has brought more than $400 billion to new destinations over four years, with the UAE emerging as a leading choice.

• Globally, the billionaire population grew to 2,682, with combined wealth rising to $14 trillion in 2024, up from $12 trillion the previous year.

💡 Why it matters?

• The country’s favorable legal structures, high-quality healthcare, and world-class education systems make it a prime choice for billionaires seeking to grow and transfer wealth across generations.

• The influx of billionaires underscores the UAE's appeal as a financial, innovation, and lifestyle destination.

• Prominent billionaires like Nassef Sawiris and Aliko Dangote are relocating their family offices to the UAE, highlighting a trend where private wealth management entities are choosing the region for growth opportunities and stability.

• The growth of billionaire wealth and family offices is spurring investment in real estate, technology, and innovation ecosystems, contributing to the UAE's diversified economy.

• The UAE has outpaced other Middle Eastern countries in attracting billionaire wealth, positioning itself as a dominant regional hub for global financial powerhouses.

🔜 What’s next?

• UBS highlights that the trend of global billionaires relocating is accelerating, with the UAE expected to attract even more ultra-high-net-worth individuals in the coming years.

• The UAE will likely see a rise in sophisticated family offices from Asia, Europe, and Africa, bringing increased capital and innovation.

• With its focus on technology and business-friendly policies, the UAE is cementing itself as a hub for startups and investment opportunities that appeal to the global elite.

• The wealth influx will benefit luxury real estate, financial services, and healthcare, driving growth across multiple sectors.

📈🚀 Abu Dhabi Business Week 2024 Concludes with Big Announcements and Strategic Partnerships

📰 What is it about?

• Abu Dhabi Business Week 2024 (ADBW) has concluded its inaugural edition with several major announcements and initiatives, showcasing the emirate’s growing role as a global hub for investment and innovation. The event emphasized Abu Dhabi's efforts to strengthen its economy by attracting local and international investors and fostering private sector involvement in major projects.

💡 Why it matters?

• Fostering Economic Growth: The initiatives and partnerships unveiled during ADBW are set to streamline business operations, attract international investment, and drive sustainable economic development across various sectors.

• Boosting Innovation and Tech: The launch of platforms like TIP and MZN Hub reflects Abu Dhabi's commitment to becoming a leading hub for AI, tech innovation, and digital transformation, empowering both startups and established businesses.

• Strengthening Public-Private Partnerships: The announcements reinforce the growing role of public-private partnerships, which are key to advancing Abu Dhabi’s infrastructure, sustainability goals, and the diversification of its economy.

• Enhanced Investor Experience: Through initiatives such as facilitating the investment process, improving licensing, and setting up the Golden Vendor List, Abu Dhabi is cementing itself as an attractive destination for investors worldwide.

🔜 What’s next?

• Increased Investment in Key Sectors: Abu Dhabi's push to attract investors in sectors like advanced industries, AI, and agriculture will likely continue to fuel long-term growth and innovation in the emirate.

• Private Sector Growth: The Khalifa Fund's initiatives and Hub71’s success will likely lead to more entrepreneurial ventures and startups, contributing to a diversified economy driven by innovation.

• Global Leadership in Industrial Safety: The Global Manufacturing and Industrialisation Summit's Manifestocould set new global standards for safety, positioning the UAE as a leader in industrial innovation and sustainability.

📈 Markets

🌟 Saudi Arabia's Nice One IPO: A Transformative Leap for E-commerce and Beauty

📰 What is it about?

• Nice One Beauty Digital Marketing Company, Saudi Arabia's premier beauty and personal care e-commerce platform, is set to launch an Initial Public Offering (IPO) on the Saudi Exchange, Tadawul.

• The company plans to float 30% of its share capital, marking a significant moment in its evolution from a startup to an industry leader.

• Founded in 2017 by Omar Al Olayan, Nice One has rapidly grown, achieving over 8 million app downloads, a 90% customer satisfaction rate, and FY2023 revenues of SAR 782.4 million.

• This milestone aligns with its strategic focus on innovation, private-label expansion, and contributions to Saudi Vision 2030, emphasizing technological advancement and economic diversification.

💡 Why it matters?

• Nice One's IPO highlights the growth potential of Saudi Arabia's e-commerce sector, which benefits from a young, tech-savvy population and growing consumer demand for beauty and personal care products.

• This milestone reflects Saudi Vision 2030's goals of fostering innovation, entrepreneurship, and non-oil revenue generation, positioning Nice One as a model for other startups in the region.

• With its IPO, Nice One aims to expand internationally, potentially placing Saudi Arabia on the global map as a hub for beauty innovation and e-commerce excellence.

• The IPO allows institutional and retail investors to participate in Nice One's growth journey, leveraging its established market leadership and strategic ambitions for regional and global expansion.

🔜 What’s next?

• The IPO proceeds will likely support Nice One's plans for geographic expansion and product innovation, strengthening its footprint across the region and potentially entering new markets.

• With its focus on cutting-edge technologies in e-commerce and digital marketing, Nice One will likely invest in AI-driven solutions, personalization tools, and logistics enhancements to maintain its competitive edge.

• As a leading startup aligned with Saudi Vision 2030, Nice One is poised to create jobs, foster local innovation, and contribute to a thriving entrepreneurial ecosystem.

• Nice One's IPO could set a precedent for other Saudi startups, inspiring similar businesses to consider public listings and fueling the evolution of the Kingdom's tech-driven economy.

💭Quote of the day
“A goal without a plan is just a wish.” - Antoine De Saint-Exupery, Writer, poet, aristocrat and journalist.

OPEC+ Production Policy: Navigating Challenges Amid Weak Demand

📰 What is it about?

• OPEC+ has decided to delay increasing oil production quotas until at least April 2025, reflecting concerns over tepid global demand, particularly in China and other key markets.

• This marks the third postponement of a planned production hike since June, as the group works to maintain stable prices while grappling with internal divisions and competition from non-OPEC producers like the U.S., Brazil, and Guyana.

• While the move signals cautious optimism about next year's demand, it also underscores mounting pressure within OPEC+, with smaller members struggling to adhere to quotas and the broader group subsidizing rivals by keeping prices stable.

💡 Why it matters?

• OPEC+ production cuts help sustain oil prices but at a cost. The group's hesitancy to boost output highlights a delicate balancing act: prevent price crashes while avoiding internal fragmentation.

• President-elect Donald Trump faces a high-stakes energy showdown with OPEC. While OPEC's cuts elevate prices enough to keep U.S. producers afloat, they constrain Trump's "drill, baby, drill" ambitions. U.S. producers need oil prices to climb toward $90 per barrel to justify significant new drilling.

• Escalating U.S. sanctions on Iran and Venezuela could push prices higher by removing barrels from the global market, but such actions risk retaliatory measures like shipping disruptions and may strain improved Gulf state relations with Iran.

• OPEC+ faces rising competition from new producers such as Guyana and Brazil, and internal strain as members like Iraq, Kuwait, and the UAE exceed quotas. Angola’s departure and threats from other African nations to follow suit signal waning cohesion within the cartel.

🔜 What’s next?

• Tariffs on China vs. Oil Exports: Trump’s potential tariffs on China could hinder U.S. oil export growth, conflicting with domestic drilling goals.

• Sanctions Escalation: Renewed sanctions on Iran and Venezuela may tighten global supply, lifting prices, but risk geopolitical blowback.

• Internal cohesion is critical as smaller members struggle under current cuts. More defections could weaken OPEC+’s ability to influence global prices.

• Decisions in April will hinge on demand recovery, particularly in China, and the behavior of U.S. producers, who are consolidating and lowering costs.

• With oil prices near $70 per barrel, U.S. producers remain vulnerable, and OPEC+ may face increased pressure to prioritize market share over price stability.

• Geopolitical risks tied to sanctions and tensions in the Gulf region could disrupt supply, adding volatility to the market.

🔍In other news…

1. Mubadala to have an AI member on its investment committee in 2025.

2. UAE’s non-oil economy maintained robust growth in November.

3. Make it in the Emirates: UAE ministry, LuLu launch initiative to promote local products.

4. UAE Attorney-General refers 15 defendants in tax fraud cases to criminal court.

5. Uber launches driverless operations in Abu Dhabi.

6. What will Dubai's reinstatement of 30 per cent alcohol tax mean for consumers?

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