Latest from Economy ME
Economy ME
2 days ago
- Business
- Economy ME
Nvidia's stock soars over 4 percent as it reclaims top spot by surpassing Microsoft as most valuable company
Nvidia has once again surged to the top of the global corporate hierarchy, reclaiming its position as the world's most valuable company after its shares soared to a fresh record high. The chipmaker's stock jumped more than 4 percent, closing at $154.31 and pushing its market capitalization to an unprecedented $3.77 trillion, overtaking Microsoft and leaving Apple in third place. A remarkable turnaround in 2025 The rally marks a stunning turnaround for Nvidia, which began the year with a closing price of $149.43 on January 6. After some volatility and a dip in April, the company's shares have rebounded by 63 percent from their lows, adding nearly $1.5 trillion in market value in just a few months. The latest surge was catalyzed by a robust first-quarter earnings report in late May, which exceeded analysts' expectations and underscored the company's dominant position in the artificial intelligence (AI) hardware market. AI demand powers growth Nvidia's meteoric rise is being driven by insatiable demand for its AI chips, which are the backbone of the current global boom in generative AI, machine learning, and data center expansion. The company's data center business saw a 73 percent year-over-year surge, fueling a 69 percent overall revenue increase in the most recent quarter. Analysts now project Nvidia's annual revenue could approach $200 billion, with a 53 percent growth rate for the full fiscal year. Major tech giants—including Microsoft, Meta, Alphabet, and Amazon—together account for more than 40 percent of Nvidia's revenue, as they aggressively invest in building out their AI infrastructure. Bank of America analysts described Nvidia as the 'undisputed leader in performance' among semiconductor firms, forecasting the AI market to reach $1 trillion by 2030, with Nvidia as a key beneficiary. Read more: What caused Nvidia's 17 percent plunge, over $1 trillion stock market loss following DeepSeek's surge? Defying headwinds: China export ban Remarkably, Nvidia's ascent comes despite significant headwinds, most notably the effective loss of the Chinese market due to expanded U.S. export controls. In April, the Trump administration banned the sale of Nvidia's H20 processor—designed to comply with earlier restrictions—effectively shutting the company out of one of its largest historical markets. Nvidia has acknowledged an $8 billion hit to sales and a $4.5 billion inventory write-off as a result. Yet, the company's dominance in other markets, especially as governments, startups, and cloud providers worldwide ramp up investment in 'AI factories,' has more than offset these losses. Nvidia is expected to ship 6.5 million GPUs in 2025 and 7.5 million in 2026, with average selling prices exceeding $40,000 per unit. The company's annual shareholder meeting on Wednesday saw CEO Jensen Huang reiterate that the computer industry is only at the beginning of a massive AI infrastructure upgrade, with robotics and sovereign AI partnerships representing major new growth frontiers.
Economy ME
3 days ago
- Business
- Economy ME
U.S. current account deficit hits record high as foreign direct investment plummets to $52.8 billion in Q1 2025
Foreign direct investment into the U.S. saw a remarkable downturn in the first quarter, falling to $52.8 billion from a downwardly adjusted $79.9 billion in the fourth quarter of 2024, as reported by the Commerce Department . This decline occurred amid heightened business uncertainty related to President Donald Trump's tariff proposals. This decrease may be temporary, as substantial foreign companies' manufacturing projects in the U.S. are set to commence, and Nippon Steel's nearly $15 billion acquisition of U.S. Steel will influence current and future quarters' statistics. The reduced first-quarter FDI inflows contributed to an expansion of the U.S. current account deficit, reaching a record high of $450.2 billion, as businesses accelerated imports in anticipation of Trump's significant tariffs. The Bureau of Economic Analysis within the Commerce Department also indicated that current account data for the fourth quarter was adjusted to reflect a gap of $312.0 billion, revised from the previously reported $303.9 billion. Current account overview The current account data tracks the net flow of goods, services, and investments into and out of the country. A substantial and persistent U.S. trade deficit has historically been mitigated by investment inflows into U.S. financial assets and foreign direct investment, which encompasses plant and equipment as well as corporate mergers and acquisitions. The first-quarter FDI inflows marked the lowest dollar amount since the $42.4 billion recorded in the fourth quarter of 2022, a time characterized by elevated post-pandemic inflation. Aside from this decline, quarterly FDI figures had remained above $61 billion since the easing of the COVID-19 pandemic, peaking at $135 billion in the third quarter of 2021, according to data from the Commerce Department. Read more: UAE emerges as global FDI hotspot, second only to the U.S. U.S. FDI leadership Historically, the U.S. remains the largest recipient of FDI globally, attracting investments across diverse sectors such as manufacturing, consumer products, technology, and finance. In 2023, new foreign direct investment expenditures in the U.S. totaled approximately $148.8 billion, though this was down 28 percent from 2022 levels. The decline partly reflects a global slowdown in FDI flows, with UNCTAD reporting a second consecutive year of global FDI decline in 2024, posing challenges especially for developing economies.
Economy ME
3 days ago
- Business
- Economy ME
UAE remains world's top wealth magnet, to attract record 9,800 millionaires in 2025
The UAE is expected to attract 9,800 new millionaires this year, retaining its crown as the world's leading wealth magnet. According to the Henley Private Wealth Migration Report 2025 , the estimated wealth of millionaires moving to the UAE this year is $63 billion, with the nation recording a 98 percent surge in millionaire growth over the last 10 years. The second-largest wealth magnet in 2025 is the United States, which is expected to attract 7,500 new wealthy migrants. In third place comes Italy, with 3,600 new millionaires expected to move to it in 2025. U.K. to lose 16,500 millionaires in 2025 A record-breaking 142,000 millionaires are projected to relocate internationally this year, with the U.K. expected to see the largest net outflow of high-net-worth individuals (HNWIs) by any country since Henley & Partners and New World Wealth began tracking millionaire migration 10 years ago. The U.K. is forecast to lose a staggering 16,500 millionaires in 2025, more than double the anticipated 7,800 net outflow from China, ranked second this year after topping the millionaire-loser leaderboard every year over the past decade. '2025 marks a pivotal moment. For the first time in a decade of tracking, a European country leads the world in millionaire outflows. This isn't just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere. The long-term implications for Europe and the U.K.'s economic competitiveness and investment appeal are significant,' said Dr. Juerg Steffen, CEO at Henley & Partners. The U.K. is not alone in its struggles. For the first time, EU heavyweights France, Spain and Germany are expected to see net HNWI losses in 2025, with projected net outflows of –800, –500, and –400 millionaires, respectively. Ireland, Norway and Sweden are also beginning to see significant wealth losses, with many affluent Europeans relocating to more investor-friendly hubs on the continent. Southern Europe stands out Key beneficiaries of this trend are Switzerland, set to attract a net gain of 3,000 migrating millionaires this year, while Italy, Portugal and Greece are also forecast to see record inflows of 3,600, 1,400 and 1,200, respectively. These moves across the EU are driven by favorable tax regimes, lifestyle appeal and active investment migration programs. Southern Europe is fast emerging as a new center of gravity for wealth migration in the region, with Monaco remaining popular, especially among ultra-HNWIs from the U.K., Africa and the Middle East. 'If one reviews the fastest growing wealth markets in the world over the past decade, it is noticeable that most of these countries are either popular destinations for migrating millionaires — such as Montenegro, the UAE, Malta, the USA and Costa Rica — or emerging market tech hubs like China, India and Taiwan. This demonstrates the importance of millionaire migration in driving new wealth formation in a country,' said Andrew Amoils, head of research at New World Wealth. Golden visa propels UAE to the top Outside of Europe, strong demand from the U.K., India, Russia, Southeast Asia and Africa, facilitated by attractive golden visa options, has reinforced the UAE's position as the world's most sought-after wealth haven. Saudi Arabia is the biggest riser on this year's inbound list, projected to see a net inflow of 2,400 new millionaires in 2025, with the Kingdom benefiting from a surge in returning nationals and international investors settling in Riyadh and Jeddah. On the other hand, traditional destinations such as Singapore, Australia, Canada and New Zealand appear to be losing their appeal for wealthy entrepreneurs, with their lowest net inflows on record provisionally expected in 2025. Meanwhile, Thailand is rapidly emerging as Southeast Asia's new safe haven, with Bangkok positioning itself as a key rival to Singapore. Thailand's vibrant capital is increasingly favored by HNWIs from China, Vietnam and South Korea, drawn by its international schools, growing financial services sector and high-end real estate offerings. Read| Dubai ranks among top 20 cities for millionaires globally in 2025: Report Tax-friendly policies drive HNWIs to Dubai The U.K.'s sweeping tax reforms have pushed millionaires to relocate to tax-friendly jurisdictions such as the UAE, Monaco and Malta, as well as to lifestyle havens including Italy, Greece, Portugal and Switzerland. Many high-earning execs are settling in the expanding wealth hubs of Dubai, Florida, Milan, St. Julian's, Lisbon, the Athenian Riviera, Zug and Lugano. 'Since 2014, the number of resident millionaires in the U.K. dropped by 9 percent compared with the W10's global average growth of 40 percent. Over the same period, the U.S. saw a 78 percent increase in millionaires — the fastest wealth growth among the W10,' said Prof. Trevor Williams, chair and co-founder at FXGuard and former chief economist at Lloyds Bank Commercial Banking. In Asia, South Korea is expected to see significant net outflows of HNWIs in 2025, more than double last year's figure, following a period of economic and political turbulence. Vietnam is also beginning to see a worrying uptick in millionaire departures, and Pakistan continues to lose millionaires to the UAE. Amid ongoing instability in the Middle East, Lebanon faces concerning losses, with many wealthy individuals relocating to Cyprus, Greece and the UAE. Iran is also losing HNWIs to the UAE.
Economy ME
4 days ago
- Business
- Economy ME
Non-oil activities in Saudi Arabia surge by 5.3 percent in 2024, reports GASTAT
The General Authority for Statistics ( GASTAT ) in Saudi Arabia has released the annual Industrial Production Index (IPI) for 2024, showing a year-over-year decrease of 2.3 percent. This decline is primarily attributed to a 5.2 percent drop in oil activity, while non-oil activities experienced a 5.3 percent increase, indicating improved performance across all non-oil economic sectors compared to 2023. According to the data, the annual index for mining and quarrying activities fell by 6.8 percent compared to 2023, whereas the annual index for manufacturing activities rose by 4.7 percent. Additionally, the annual index for electricity, gas, steam, and air conditioning supply activities increased by 3.5 percent, while the index for water supply, sewerage, waste management, and remediation activities grew by 1.6 percent compared to the previous year. The IPI serves as an economic indicator that measures changes in the volume of industrial output based on data collected from the industrial production survey. Read more | Saudi non-oil revenues covered 40 percent of expenditures: Al-Jadaan Robust growth forecast for non-oil GDP Saudi Arabia's non-oil GDP is projected to grow robustly, with the IMF forecasting non-oil GDP growth of 2.0 percent in 2025 and 5.0 percent in 2026. The non-oil sector grew by 4.2 percent in Q1 2025, underpinned by strong domestic demand and government sector expansion. Vision 2030 targets a non-oil GDP share of 50 percent by 2030, with key sectors including finance, insurance, transport, communication, non-oil manufacturing, and agriculture. Non-oil revenues rose by 9 percent in 2023, and the government has implemented fiscal reforms to further support diversification. The Saudi manufacturing sector is projected to reach $134.53 billion in output by 2025, with value-added contributions expected to hit $87.19 billion. The sector is driven by investments in refining, petrochemicals, high-tech production, and policy incentives under Vision 2030. Saudi Arabia has outlined a comprehensive energy sector roadmap for 2025, including major investments in renewable energy projects such as a 1,862 solar power project and a 260 wind farm. The Jafurah gas plant, expected to start production in 2025, is a key milestone for the Kingdom's sustainable energy goals. The non-oil sector is expected to attract investments worth $69 billion by 2030, supporting the growth of non-oil exports and positioning Saudi Arabia as a global hub for industry and innovation. Strategic agreements with international partners are part of the Kingdom's efforts to boost non-oil sector development.
Economy ME
20-06-2025
- Business
- Economy ME
Dubai real estate market poised for record-breaking summer with $40 billion in transactions: Report
Dubai's real estate market is set for its most active summer on record, with total transaction volumes anticipated to exceed $40 billion between June and August 2025. According to analytics reviewed by real estate agency Elite Merit Real Estate LLC , the market surged to AED142.7 billion ($38.9 billion) in Q1 2025 alone—marking a 22 percent year-on-year increase and laying the groundwork for summer spending in the AED150–160 billion ($41–44 billion) range. In comparison, Summer 2024 concluded with just over $33 billion in total transactions, positioning this year's forecast for a potential 25–30 percent seasonal increase. A key driver of this trend is the maturing development pipeline. Projects launched in 2023–24 are now entering their final construction stages, providing investors in Summer 2025 with a last-chance opportunity to secure units before completion-linked price increases take effect. Off-plan activity now comprises over 63 percent of all transactions—up from 54 percent last year—underscoring the growing confidence in the city's development trajectory. This surge in activity is unfolding against a favorable backdrop: sustained price appreciation, strong off-plan momentum, and improving macroeconomic conditions are combining to create what many perceive as a limited-time opportunity for global investors. Apartments are projected to appreciate by 6–9 percent year-on-year, while villa prices could increase by 7–10 percent, supported by tight inventory and ongoing international demand. Off-plan units in emerging areas such as Arjan and JVC are expected to yield capital gains of 15–25 percent by handover. Off-plan activity has grown to over 63 percent of transactions, reflecting rising confidence in Dubai's real estate market. Read more: Summer real estate boom in Dubai to drive record sales, rentals: Report New opportunities for buyers Historically a quieter quarter due to seasonal travel, Q3 now presents buyers with enhanced negotiation leverage. Developers are responding to this dynamic with attractive post-handover payment plans and limited-time summer incentives, particularly in the mid-luxury segment. 'Summer 2025 offers a compelling value window that we expect will close quickly by Q4,' said Elkhan Salikhov, CEO at Elite Merit Real Estate. 'We're seeing a convergence of factors—pricing still below peak, soft summer inventory pressure, and upcoming project handovers—creating an ideal moment for experienced buyers.'
