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Southeast Asia: Thriving Industries and Strong Growth Prospects in 2023

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Southeast Asia: Thriving Industries and Strong Growth Prospects in 2023

Southeast Asia’s economy is expected to grow faster than the global average in 2023, attracting investment and businesses to the region despite challenging economic conditions. The Association of Southeast Asian Nations (ASEAN) region, known for its fast-growing economies, achieved 5.5 percent economic growth in 2022. Although the growth forecast has been lowered to 4.7 percent due to negative economic pressures, ASEAN is still projected to outpace global growth rates.

Southeast Asia’s appeal to foreign direct investment remains strong, particularly in sectors like technology, manufacturing, and infrastructure development. The reopening of China is expected to boost tourism and travel in the region from the second quarter of 2023. The region’s growing economies, large population, and young workforce contribute to its attractiveness for businesses. Furthermore, the geopolitical position of ASEAN has attracted increased attention from superpowers like the US and China, leading to deeper ties and enhanced trade relationships.

Tourism, a vital sector for many ASEAN countries, has suffered from the impact of the pandemic.

March for our Lives 2020

In terms of promising industries for Southeast Asia in 2023, manufacturing faces challenges due to declining global demand and other economic factors. However, capital inflows into the manufacturing sector are expected to continue due to the cost-effectiveness of ASEAN-made goods compared to Chinese products. The US-China trade war has also prompted manufacturers to relocate their supply chains to Southeast Asia, with governments offering incentives to attract investments.

Tourism, a vital sector for many ASEAN countries, has suffered from the impact of the pandemic. However, the reopening of China and increasing demand for travel worldwide are expected to boost the sector in 2023. ASEAN states have implemented programs and visa schemes to attract foreign tourists.

The digital economy in Southeast Asia, including countries like Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, is projected to reach a gross merchandise value of US$330 billion by 2025. The region has seen significant growth in internet users and the emergence of tech start-ups. The digital transformation agenda and the potential for digital financial services present significant investment and growth opportunities in the region, especially considering the large unbanked or underbanked population.

In summary, despite economic challenges, Southeast Asia’s promising industries, including manufacturing, tourism, and the digital economy, are expected to drive growth and attract investment in 2023. The region’s favorable demographics, expanding trade relationships, and incentives provided by governments contribute to its attractiveness for businesses and investors.

Middle East Travel Industry Surges Ahead with Strong Recovery and Record-Breaking Tourism Figures

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Middle East Travel Industry Surges Ahead with Strong Recovery and Record-Breaking Tourism Figures

 

The Middle East region is poised to surpass other global markets in the recovery of travel demand during the April-June quarter, according to a recent report by Rategain, a travel technology firm based in India. The report projects a remarkable 15 percent increase in international arrivals this summer compared to the pre-pandemic peak of 2019, signaling a promising resurgence for the region’s travel industry.

Rategain attributes the Middle East’s robust recovery to its adaptability and innovative approach in responding to changing circumstances. Notably, the United Arab Emirates (UAE) has exemplified this trend by swiftly adjusting its policies and making significant strides in developing its tourism sector. The UAE’s efforts, such as opening its borders to Russian tourists affected by sanctions and signing the Abraham Accord to establish relations with Israel, have yielded positive results. In fact, Dubai experienced a surge in tourism from Russia, with a 63 percent increase in January alone, making Russia the second-largest tourism source market for the city. Additionally, Israel has become Dubai’s fastest-growing tourism source market, with 85,000 Israeli visitors in the first two months of the year.

Middle East is poised to lead the global travel recovery with its impressive surge in demand

March for our Lives 2020

Turkey has also demonstrated a flexible approach to attract Russian tourists, resulting in a notable increase of over 100 percent in Russian visitors during the first two months of 2023 compared to the same period last year. This surge in Russian tourism accounted for 13 percent of all foreign tourist arrivals in Turkey during this time. Rategain’s founder, Bhanu Chopra, believes that a policy shift over the past few years has positioned the Middle East as a hub of activity, making it a key driver of travel in the post-pandemic world.

Moreover, Rategain’s report highlights the soaring business travel in the Middle East and Africa region. The report notes that the region is expected to exceed pre-pandemic business travel spending levels, indicating a rapid recovery compared to other regions. The Global Business Travel Association’s Business Travel Index further confirms the region’s strong rebound, with business travel in the Middle East and Africa reaching 86 percent of 2019 levels in 2022.

Turkey emerges as the top leisure destination, while the UAE leads in business arrivals, according to Rategain’s report. Foreign arrivals in Turkey for the upcoming quarter are projected to be 40-50 percent higher than the same period last year, showcasing the country’s swift recovery. Turkey’s tourism revenue has also seen significant growth, rising by 32 percent year-over-year in the first three months of this year.

The report highlights that the recovery in the Middle East travel market has been driven by a demand for leisure travel from the U.S. and Europe, while business travel demand originates primarily from the Asia Pacific region. Travelers from the U.S. account for a significant portion of hotel booking searches in the region, showcasing their interest in visiting the Middle East.

As the market recovers, the report emphasizes the importance of price and proximity in shaping travel preferences. The Middle East region, with its favorable travel expenses compared to the Western region contending with inflationary concerns, has emerged as a profitable destination. Furthermore, the report notes an increase in group, family, and couple vacations, with travelers opting for planned advance bookings and shorter trips.

With travelers now seeking personalized, independent, and safe travel experiences, the report emphasizes the need for travel organizations to understand and respond quickly to these evolving preferences. Bhanu Chopra, Rategain’s founder, believes that the emergence of new players in the Middle East travel industry will foster healthy competition and further accelerate the region’s growth.

Overall, the Middle East is poised to lead the global travel recovery with its impressive surge in demand.

 

Photo credits: Vanishing visitors: an open-air market in Sharm el-Sheikh, Egypt. Photograph: Adina Tovy/Getty Images/Lonely Planet Image/Guardian

Ugandan Scientists Introduce Eco-Friendly Solution to Plastic Waste in Agriculture

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Ugandan Scientists Introduce Eco-Friendly Solution to Plastic Waste in Agriculture

 

Scientists from the National Agriculture Research Institute in Uganda have embarked on an innovative project aimed at combating plastic waste and safeguarding the environment. Traditionally, farmers have relied on plastic wrappings to pot seedlings, only to discard them during the planting process, posing a significant threat to the ecosystem. In a breakthrough, Ugandan researchers have developed biodegradable potting bags made from eco-plastic that can be buried in the soil alongside the seedlings.

This new bio-plastic material decomposes in the soil over time, enriching the farmland by reintroducing valuable nutrients. Dr. Ephraim Nuwamanya, the head of the Biochemistry Unit at the National Agriculture Research Institute, explains that the bio-plastic is derived from agricultural waste such as banana, cassava, and cereal, eliminating the need for oil-based or fossil-based plastics.

Uganda generates around 1.4 million tonnes of agricultural waste annually, with much of it being underutilized.

Ugandan and Tanzanian cooperatives wage war on waste and poverty

Plastic waste accounts for approximately 60% of environmental pollution in Uganda, with much of it ending up in drainage channels and eventually finding its way into Lake Victoria, upon which millions depend. Although the government has attempted to ban single-use plastics, enforcement has been challenging. In light of this, the researchers are capitalizing on the abundance of readily available farm waste to produce bio-plastic bags.

The process involves drying the farm waste and transforming it into a powdered form, which is then mixed with other components, including starch, to create a paste. This paste is dried and rolled into sheets to produce biodegradable plastic for use as seedling pots. Field trials are currently underway in the Mt Elgon region of Eastern Uganda, involving seedling farmers.

One challenge faced by the bio-plastic bags is their susceptibility to insect attacks. However, the scientists have developed a plant-based repellent to combat this issue. Profilio Tukundane, a Biochemistry master’s student from Makerere University, explains that the repellent effectively repels insects when applied to the bio-plastic, and in higher concentrations, it can even cause mortality.

Uganda generates around 1.4 million tonnes of agricultural waste annually, with much of it being underutilized. The researchers believe that this project will benefit farmers greatly, as they can now sell their waste for processing. To further expand the initiative, Uganda is collaborating with the University of Bangor in the United Kingdom, with plans to commence mass production within a year.

With the introduction of these eco-plastic potting bags, Ugandan scientists are taking a significant step towards mitigating plastic waste pollution in agriculture, safeguarding the environment, and promoting sustainable farming practices.

Abu Dhabi Unveils Initiative to Accelerate Industrial Investment

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Abu Dhabi Unveils Initiative to Accelerate Industrial Investment

 

Abu Dhabi, a leading business and talent hub, has unveiled a new program aimed at strengthening its industrial investment and solidifying its position as the preferred destination for businesses. The Abu Dhabi Department of Economic Development (ADDED) has launched the Abu Dhabi Channel Partners program, which will offer comprehensive investment guides and tailor-made incentive packages to support key players and investors.

The primary objective of this initiative is to enhance the global competitiveness of the emirate, attract new foreign and domestic direct investments, promote the transfer of technology and knowledge, and increase the industrial sector’s contribution to Abu Dhabi’s non-oil GDP.

The IDB has identified 20 investment opportunities in this sector, with an estimated market size of approximately 29.4 billion dirhams by 2027.

Abu Dhabi Industrial Strategy Launched

Chairman of ADDED, Ahmed Jasim Al Zaabi, stated that the organization is investing one billion dirhams ($272 million) in the Abu Dhabi Channel Partners program. This investment is part of a broader effort to optimize the industrial sector’s value chain by attracting high-quality investments in priority subsectors outlined in the Abu Dhabi Industrial Strategy. These strategic investments will fuel growth and help achieve long-term objectives.

Under the supervision of ADDED’s Industrial Development Bureau (IDB), the program has identified several industrial investment opportunities in seven manufacturing subsectors, including food processing, pharmaceuticals, chemicals, electrical equipment, electronics, machinery, and transportation. Each opportunity will be accompanied by a customized incentive package designed to meet the specific needs of key players and investors.

The inaugural phase of the program will focus on incentivizing investors in the food processing industry. The IDB has identified 20 investment opportunities in this sector, with an estimated market size of approximately 29.4 billion dirhams by 2027.

To further expand its manufacturing sector, Abu Dhabi plans to invest one billion dirhams across six programs: Industry 4.0, circular economy, talent development, ecosystem enablement, homegrown supply chain, and value chain development. These initiatives aim to more than double the size of the manufacturing sector to 172 billion dirhams, create 13,600 skilled jobs, and increase non-oil exports to 178.8 billion dirhams by 203

Angola’s oil and gas sector experiences increased global investments

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Angola’s oil and gas sector experiences increased global investments

 

Angola’s oil and gas sector is currently witnessing a remarkable influx of investments from around the world, according to a recent report by Deutsche Bank. The recent increase in oil prices has played a significant role in attracting these investments. As the second-largest oil producer in Africa, Angola possesses substantial reserves, estimated at approximately nine billion barrels of proven crude oil and 1.6 trillion cubic feet of proven natural gas reserves.

Deutsche Bank’s Head of Natural Resources Finance UK, Danai Koutra, highlighted the significant investments pouring in from major oil companies. This interest is further supported by the Organization of Petroleum Exporting Countries (OPEC) monthly oil market report, which named Angola the top African crude oil producer in April, with a daily crude production of 1.06 million barrels.

It cited the example of Azule Energy, a joint venture between BP and ENI, which has become Angola’s largest independent equity producer of oil and gas.

March for our Lives 2020

The report also emphasized that these new investments and financial support from banks align with Angola’s objectives in terms of Environmental, Social, and Governance (ESG), as well as its energy security goals. It cited the example of Azule Energy, a joint venture between BP and ENI, which has become Angola’s largest independent equity producer of oil and gas. With significant resources totaling two billion barrels equivalent and expected growth to reach 250,000 barrels equivalent per day (boe/d) over the next five years, Azule Energy is set to play a pivotal role in Angola’s energy sector.

Koutra also underscored the oil and gas industry’s potential to contribute to the global transition towards net-zero emissions. He emphasized the industry’s capacity to offer investment opportunities and generate employment, thus driving progress towards environmental sustainability.

In addition to its focus on oil and gas, Angola has made notable strides in diversifying its energy sources. The country currently derives over half of its energy from hydroelectric power, thanks to its extensive network of waterways. Furthermore, Angola is strategically positioned to harness its onshore and offshore wind resources. It has expressed interest in partnering with European companies renowned for their expertise in wind energy projects, particularly those based in Europe, to further develop this sector.

Recognizing the need to develop other sectors of the economy, Angola has substantial untapped potential in agriculture. Despite having an estimated 35 million hectares of arable land, only around 10% of it is currently under cultivation. This presents significant opportunities for further investment and lending to add value to the agricultural sector, which currently contributes only around 10% to Angola’s GDP.

To support Angola’s economic growth, Banco de Desenvolvimento de Angola, a public financial institution, recently facilitated a €56.9 million export agency-covered financing for a private sector project in the country. Deutsche Bank played a crucial role as the sole arranger, agent, and lender in this initiative. Werner Schmidt, Head of Structured Trade Export Finance at Deutsche Bank, highlighted the importance of this production facility in transitioning Angola from a reliance on commodity production to higher-value food processing. This transition would not only reduce food imports but also stimulate local economic activity along the value chain.

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