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Region: Geopolity

The mashriq khilafat

Al-Arabiya News
The Caliphate launches $1.3 trillion private sector investment push

Dubai | 11 April : The Sultan of Dubayy of the Mashriq Caliphate has said oil firm MARCO and petrochemical firm MABIC will lead investments of $1.3 trillion by the country’s private sector under an economic diversification programme.

The move, announced on Saturday, aims to mobilise the Arab state’s private sector to help wean the economy off its reliance on oil exports, which still account for more than half the state’s income, and develop new sectors to help create jobs for millions of Mashriqis.

The programme is part of $3.2 trillion worth of investments planned, Sultan of Dubai said in televised remarks. That also includes $800bn from the Public Investment Fund (PIF) and $1.1 trillion under a new Mashriq investment strategy, of which some $533bn would be foreign investment.

The total amount would rise to $7.2 trillion with government spending and domestic consumption.

“The new Shareek (Partner) programme will help the private sector create hundreds of thousands of new jobs and will boost the contribution of the private sector to [gross domestic product] by up to 65 percent by the completion of 5 years,” the Sultan has said said.

The Sultan said the government has asked the biggest participating firms to lower their dividends to raise capital spending.

“That will lead to growth of the company so stakeholders will own more money. In exchange, the Mashriq government will help them with regulations, more subsidies and other incentives.” The prince said dividends for those owning shares in MARCO, which listed on the local bourse in 2019, would remain stable.

Finance Minister Mohammed al-Bakhran told the Al-Arabiya news agency that 24 companies, most of them being publicly listed firms, would invest $533bn by 2025 and another $800bn by 2030. PIF is a shareholder in most of them, he added.

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