Bahraini banks could face a funding shortfall of $1.9 billion as of year-end 2025, in the event of a full-blown US-Iran conflict, threatening GCC stability and capital flows, according to recent analysis.  

The kingdom’s absolute funding shortfall, which will total 8% of its external assets after assumed haircuts, will be a steep decline from a $1.7 billion surplus in 2024, S&P Global said in it stress analysis report published on Tuesday. A haircut refers to a reduction applied to the value of an asset in percentage terms. 

Under a severe stress scenario where GCC lenders face external funding outflows, Bahraini lenders may require domestic or regional support.

The shortfall reflects Bahraini banks' “rising external debt and an increase in assumed haircuts on investment portfolios that results from high exposure to sovereign creditworthiness”, the report added. 

Qatari lenders have pared their funding shortfall compared with previous estimates, with the potential shortfall declining from $7.4 billion as of year-end 2024 to $4.4 billion as of year-end 2025. The financial gap is anticipated to be covered by its government, thus limiting its overall risk.

Banks in the UAE, Kuwait, and Oman, on contrast, maintain strong net external asset positions and are well placed to cope with outflows. This scenario extrapolates to Saudi lenders, too, despite rapidly rising external debt levels. Saudi banks witnessed a sharp rise in their net external debt, increasing fivefold to $54.6 billion at year-end 2025, from $9.1 billion at year-end 2024.

On balance, GCC lenders has been highly exposed to external debt outflows amid rising geopolitical risks and regional tensions since 2023. 

“We continue to view external debt outflows as a plausible risk under a severe stress scenario - particularly in the event of a prolonged conflict involving nonregional and regional actors and sustained, broad-based attacks,” the report added. 

In case of an escalation, GCC lenders may face external funding outflows that may equate to half of interbank liabilities, and 30% for non-resident deposits.

Lenders may liquidate their external positions to fund the outflows that could result in reduced assets valuations. Such liquidations could cause haircuts of 10% on interbank deposits and 20% on deposits held at head offices and branches. Furthermore, a reduction of 20% is possible on investment portfolios abroad, typically held for liquidity management; and 100% on loans to non-residents and other assets, the agency said. 

Qatari banks' net external debt stood at approximately $121 billion as of end November 2025, equalling about 32% of total domestic lending.

Non-resident deposits and interbank funding totaled $109 billion as of November end, constituting around 52% of banks’ external debt, according to S&P. 

“We consider this debt to be subject to the potential for outflows in the event of a significant spike in geopolitical risk. We note, however, that such outflows were limited when targets in Qatar were attacked by Iran and Israel in 2025, with about $3 billion of total outflows in each of August and October,” the rating agency said last month.  

Western Europe dominated tourism traffic in Dubai last year, with overall year-on-year visitor numbers up 5%. 

Arrivals from Western Europe stood at 4.1 million in 2025, making up a fifth of total visitor numbers, and up from 3.74 million in 2024. 

Visitors from CIS and Eastern Europe totalled 2.89 million, making 15% of the total visitor pool, followed by tourists from South Asia (2.89 million), Northeast and Southeast Asia (1.85 million; 9%), the Americas (1.40 million; 7%), Africa (897,000; 5%) and Australasia (401,000; 2%). 

Nearly three million tourists from the six-member Gulf Cooperation Council (GCC) and 2.17 million from the Middle East and North Africa (MENA) region visited Dubai last year, constituting 15% and 11% of total arrivals, respectively.  

Dubai hosted 19.59 million international tourists in 2025, up 5% year-on-year from 18.72 million arrivals the previous year, as it solidifies its position as a regional and global tourism hotspot. 

Strategic partnerships, global marketing campaigns and major events contributed to the emirate hosting such a colossal visitor pool, Dubai’s media office said in a statement on Monday. 

The city welcomed a record 2.04 million international overnight visitors last December, rising 6% year-on-year and edging past last January’s record of 1.94 million tourists. 

“By further enhancing the city’s exceptional infrastructure and forging strong global partnerships, we continue to consolidate Dubai’s emergence as one of the world’s most sought-after destinations,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince, and the UAE’s deputy prime minister.

“Dubai’s success also reflects the city’s diversity, cultural vibrancy, and its ability to continuously evolve its tourism and hospitality offerings. Through close collaboration between all stakeholders, we are focused on driving greater innovation and raising service excellence across the tourism ecosystem.”

In 2025, Dubai International (DXB) airport retained its position as the world’s busiest for international passengers for the 11th consecutive year, with total traffic from January through to September totalling 70.1 million.

By the end of December, the city’s hotel inventory reached 154,264 rooms across 827 establishments, which puts it well ahead of global peer cities such as Bangkok, New York, Paris and Singapore, and almost on par with London in terms of total room inventory. 

Three Dubai properties found space on the list of the world’s 50 best hotels in 2025, including Atlantis The Royal, Jumeirah Marsa Al Arab, and The Lana Dubai.

The London Muslim shopping festival 2026 concluded at ExCeL London on February 7–8, bringing together more than 350 exhibitors and tens of thousands of visitors for a two-day pre-Ramadan lifestyle event focused on retail, food, travel and community engagement.

Organised as a platform for Ramadan and Eid preparation, the festival featured a large retail bazaar showcasing modest fashion, halal food products, fragrances, home décor and Islamic gifts, alongside dedicated zones for travel, sports activities and live cooking demonstrations.

The event also hosted celebrity chef and author Nadiya Hussain, who held a book signing and meet-and-greet session for her latest cookbook "Rooza." Live cooking demonstrations formed a central part of the programme, with chefs presenting Ramadan-inspired recipes and interactive sessions for visitors.

More than 30,000 attendees were expected across the weekend, according to organisers, positioning the festival as one of Europe’s largest Muslim-focused retail and lifestyle gatherings timed ahead of the holy month. Alongside shopping, the event included the 'Muslim Travel Show', which promoted halal-friendly destinations, Umrah packages and travel deals, supported by tourism partners such as Visit Sarajevo.

A large halal food court offered international cuisines from street-food vendors and artisan producers, reflecting growing demand for diverse halal dining experiences. Other interactive features included the 'Active Sunnah Sports Zone', where visitors participated in activities such as archery, football and golf, and the 'Kids Zone', which hosted educational workshops, arts and crafts sessions and family-focused entertainment.

The festival also incorporated practical facilities including dedicated prayer spaces, family areas and health-focused initiatives, including free health checks, highlighting the organisers’ aim of combining retail with community wellbeing.

Exhibitors represented a broad range of sectors, including modest fashion brands, halal finance services, educational resources and lifestyle products aimed at Ramadan preparation. Industry participants used the event as a platform to engage directly with consumers ahead of a peak seasonal shopping period.

Now in its ninth year, the London Muslim Shopping Festival has expanded its focus beyond retail to include travel, wellness and experiential programming, reflecting broader trends within the Muslim lifestyle economy.

Nigeria has launched a strategy to promote and grow its halal economy to diversify and tap into the lucrative global halal market. 

Nigerian President Bola Tinubu inaugurated the strategy, calling for disciplined, inclusive, and measurable action for the strategy to deliver jobs and prosperity across the country, according to the News Agency of Nigeria. 

The strategy hints at Nigeria’s readiness to capture a sizeable chunk of the global halal economy and to define the nation’s direction within the market, which is expected to add an estimated $1.5 billion to the nation’s GDP 2027, according to the premier. 

“This document is a declaration of our promise to meet global standards with Nigerian capacity and to convert opportunity into lasting economic value.”  

The halal food exports, developing pharmaceutical and cosmetic value chains would position Nigeria as a halal-friendly tourism destination, and mobilise ethical finance at scale by 2030, he added. 

“The cumulative efforts are projected to unlock over twelve billion dollars in economic value, while strengthening food security, deepening industrial capacity, and creating opportunities for small-and-medium-sized enterprises across our states,” President Tinubu added.

The premier quashed concerns that link halal solely with religious affiliations, adding that halal is no longer defined by faith alone but by trust through systems that emphasize quality, traceability, safety, and ethical production. 

Tinubu said many advanced Western economies had since “recognised the commercial and ethical appeal of the halal economy and have integrated it into their export and quality-assurance systems.”

Developed countries, including the UK, France, Germany, the Netherlands, the US, Canada, Australia, and New Zealand are currently among leading producers, certifiers, and exporters of halal food, pharmaceuticals, cosmetics, and financial products, he added. 

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the inauguration of the strategy was a public-private collaboration that has involved extensive interaction with stakeholders.

“We are going to leverage the African Continental Free Trade Area to ensure we export our halal-friendly goods to the rest of Africa and beyond to any willing markets; participation is voluntary, “ the minister said. 

London-based mobility and financial services platform GoCab has secured $45 million in new financing — including $15 million in equity and $30 million in debt — to support its expansion across African markets and develop its Shariah-compliant vehicle financing model.

The equity round was led by E3 Capital and JANNGO Capital, with participation from KawiSafi Ventures and Cur8 Capital, while Cur8 Capital and other lenders provided the debt financing. As part of the transaction, Vladimir Dugin of E3 Capital and Fatoumata Bâ of Janngo Capital will join GoCab’s board, reflecting investor support for the company’s growth strategy.

GoCab operates a fintech-enabled mobility platform that allows ride-hailing and delivery drivers to acquire vehicles through Shariah-compliant financing structures. Drivers make daily payments and typically gain full ownership within about three years, with digital tools enabling them to track ownership progress and manage repayments.

The company currently operates in Côte d’Ivoire, Senegal, Morocco, Chile and Nigeria, employing approximately 120 people. According to the company, it generates more than $17 million in annual recurring revenue and has financed over 1,000 vehicles since launch.

Investment firm Shorooq on Monday launched a Qatar-backed $200 million fund aimed at supporting late-stage companies preparing for initial public offerings (IPOs), as the region sees growing demand for capital to take mature businesses to public markets.

The late-stage growth vehicle, part of Shorooq’s Qatalyst Series, will provide equity financing to established companies across the Gulf Cooperation Council (GCC) and Asia, with a focus on helping businesses strengthen governance, scale operations and achieve public-market readiness.

The Qatar Investment Authority (QIA) is an anchor investor in the fund, which was unveiled at Web Summit Qatar 2026, underscoring Qatar’s continued role in backing regional growth and capital markets development.

According to Shorooq, the fund will target companies with proven scale, strong fundamentals and sustainable unit economics that are positioned to pursue listings locally or internationally.

Investment priorities include fintech infrastructure, software and artificial intelligence, sectors where Shorooq sees a pipeline of mature companies seeking capital to bridge the gap between private growth and public listings.

Qatar Investment Authority (QIA) is seeking to expand its venture capital (VC) initiative by $2 billion, raising the programme's total capital commitment to $3 billion. 

Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, who announced the expansion in his address at the Web Summit Qatar held in Doha, said the year 2026 would mark a shift from momentum to scale. 

QIA’s Fund of Funds program, which currently supports 12 regional and international fund managers in Qatar, will welcome five new VC funds into its fold. 

The new funds represent specialities across AI, fintech, blockchain, infrastructure and special situations, the sovereign wealth fund said in a statement on Sunday.

“With an aggregate AUM of nearly $10 billion the new funds joining the program will support our efforts to develop Qatar as a regional hub for VC expertise,” said Mohammed Saif Al-Sowaidi, CEO of QIA. 

“While Doha represents the first international office for many of our funds, these managers are also encouraging their portfolio companies to establish their regional HQ here – further positioning Doha as a hub for entrepreneurs.”

The five VC funds joining the initiative include the $4-billion multi-stage, multi-strategy VC firm Greycroft; Ion Pacific, a VC structured secondaries and special-situations manager with approximately $700 million under management; and Liberty City Ventures, a VC fund and incubator with $2.4 billion of assets under management. 

Others include tech-focused investment firm Shorooq and European VC firm Speedinvest, with more than €1.2 billion in assets under management and six offices across EMEA. 

The Fund of Funds program, launched during the Web Summit event in 2024, has since commitment north of $1 billion to regional and global VC firms. 
 

Egyptian fintech NowPay has entered the Saudi market through a new joint venture with Tas’heel, launching a platform aimed at providing Shariah-compliant payroll and employee financial wellness services across the Kingdom.

The venture, called NowAccess, has been established with a $20 million investment from Tas’heel, which will hold a 75% stake, while NowPay owns the remaining 25%. The partnership combines NowPay’s payroll-linked financial technology with Tas’heel’s nationwide network of more than 310 service locations to distribute services to employers and employees.

The move follows a memorandum of understanding agreed earlier this year and comes as Saudi Arabia continues to see rising demand for locally compliant payroll and employee benefits solutions. According to United International Holding, Tas’heel’s parent company, NowAccess is intended to operationalise that agreement and scale services quickly within the Saudi enterprise sector.

NowAccess will offer payroll administration, HR integrations and salary-linked financial tools, including earned wage access, designed to meet Saudi regulatory requirements and Shariah standards. The companies said the focus is on reducing payroll friction for employers while giving employees access to structured financial services linked to their salaries.

The $20 million investment will be used to build a Saudi-based engineering and operations team and to localise products for compliance, payments infrastructure and customer support. Initial market entry will involve pilot programmes with employers, followed by a phased rollout across sectors that already prioritise payroll benefits.