The tourism arm of the UN has called the Middle East the “most important” market for the sector's performance, amid a call to increase investments in the industry globally.
The industry's growth in the region is being driven by robust investments in people and sustainability, Natalia Bayona, executive director of UN Tourism, said at the Annual Investment Meeting Congress in Abu Dhabi on Tuesday.
Tourism is also helping create frameworks that can help boost economic growth, Ms Bayona said. While the Middle East offers “cultural heritage and breathtaking landscapes, [it] also presents vibrant opportunities for tourism investments”, Ms Bayona said in a video message at the event.
“Tourism is resilient and it's a dynamic force of the global economy … the Middle East is the most important region in the world when it comes to tourism performance.”
UN Tourism released its new report at Aim Congress, which lays out four key dimensions – governance, economic, sociocultural and environmental – to serve as a comprehensive framework to achieve the goal of sustainable investment in the sector.
The report calls for a range of measures such as co-operation between stakeholders and laws to respect cultural heritage and aims to “support policymakers in steering the sector towards a more resilient, inclusive and sustainable path”.
In the Middle East, investments by regional governments into tourism have become a major asset, Ms Bayona said, noting that leaders “have assured that tourism is a state policy”.
“And thanks to the investments … we are seeing the strongest results in this region.”
The Middle East welcomed about 95 million guests last year, 32 per cent more compared to the pre-pandemic year of 2019 and 1 per cent higher than 2023, UN Tourism said in a January report – the best performer in markets tracked by the agency.
Globally, there were more than 1.4 billion international travellers last year, which is 99 per cent of pre-pandemic levels and an 11 per cent surge from 2024, resulting in receipts hitting $1.6 trillion, which is 4 per cent higher compared to 2019, it added.
“Our ambition goes beyond recovery; we aim for transformation, [which] requires robust investments … but at the end of the day, [we aim] to create economic frameworks that can help to boost economic growth and to bring together this sector,” Ms Bayona said.
Tourism is considered one of the strategic pillars in transitioning towards a new economic model, and nations in the Middle East have continued to enhance their offerings to attract more guests.
On Monday, the UAE's Economy Minister Abdulla bin Touq said that hotels in the Emirates recorded a 3 per cent annual rise in revenue to Dh45 billion ($12.3 billion) last year, reflecting a robust uplift in the country's tourism sector.
Saudi Arabia, meanwhile, has also increased its focus on tourism by opening more entertainment venues, hosting sporting events and streamlining visa processes.
These reflect the crucial role governments play in shaping the tourism investment landscape, which includes “setting [a] field of priorities, providing transparent and predictable frameworks, and creating environments that stimulate investor confidence”, said Samer Al Kharashi, director general of UN Tourism's Middle East unit.
“Moreover, policies must continuously adapt to involve market dynamics, emerging trends and shifting travel preferences. Equally important is recognising the vital role of the private sector as the main source of tourism investments,” he added.
Technology is also playing a crucial role in developing the tourism sector, reshaping everything from investments to guest experiences, on the back of artificial intelligence, smart data systems and cloud-based platforms, said Matthew Stephenson, head of investments and services at the World Economic Forum.
“Destinations that invest in digital infrastructure, data capabilities and skills development will attract not only more investors, but also higher value investments,” he said.
“The choices we make now about where to invest in, who we invest with and how we measure success will define the future of the sector … governments play a central role in creating the enabling environment that investors need [with] transparent regulations, efficient procedures, strong governance and incentives.”
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UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
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The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Completed an electrical diploma at the Adnoc Technical Institute
Works as a public relations officer with Adnoc
Apart from the piano, he plays the accordion, oud and guitar
His favourite composer is Johann Sebastian Bach
Also enjoys listening to Mozart
Likes all genres of music including Arabic music and jazz
Enjoys rock groups Scorpions and Metallica
Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil
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2016 Lewis Hamilton (Mercedes-GP)
2015 Nico Rosberg (Mercedes-GP)
2014 Lewis Hamilton (Mercedes-GP)
2013 Sebastian Vettel (Red Bull Racing)
2012 Kimi Raikkonen (Lotus)
2011 Lewis Hamilton (McLaren)
2010 Sebastian Vettel (Red Bull Racing)
2009 Sebastian Vettel (Red Bull Racing)
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Name: Dukkantek
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Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based: UAE
Number of employees: 140
Sector: B2B Vertical SaaS(software as a service)
Investment: $5.2 million
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Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office