The International Monetary Fund said on Thursday it now expects Middle East and North Africa economies to grow by just 2.6 per cent in 2025 as uncertainties stemming from a global trade war and weaker oil prices weigh on the region.

The fresh projection marked a sharp downgrade from its October projection of 4 per cent growth and comes as the region grapples with geopolitical tensions, softer external demand and oil market volatility.

Read-IMF cuts Saudi 2025 growth forecast, flags slower oil rebound

“Uncertainty could impact the real economy, consumption, investment, all these elements led to a softening of our projections,” Jihad Azour, the IMF’s director for the Middle East and Central Asia department, told Reuters in an interview.

“The direct impact of the tariff measures is limited because the integration in terms of trade between the region and the US is limited.”

The IMF also pointed to a gradual recovery in oil production, protracted regional conflicts, and delayed structural reforms, particularly in Egypt, in its latest Regional Economic Outlook report released in Dubai.

“The ongoing conflicts in the MENA region have inflicted profound humanitarian costs and left deep economic scars,” it said in the report, adding that the impact has been severe for the region’s oil importing economies.

The MENA non-oil importers are now expected to see real GDP growth of 3.4 per cent in 2025, versus an earlier forecast of 3.6 per cent.

Diverging outlooks

Growth among non-Gulf Cooperation Council oil exporters is expected to slow by one percentage point in 2025 – a sharp downward revision – before staging a modest recovery in 2026.

On the other hand, GCC economies are projected to strengthen, though at a slower pace than anticipated in October, amid extended OPEC voluntary production cuts through April, a gradual phase-out by end-2026, and weaker non-oil activity.

“With all these changes and challenges, it’s important also to seek new trade partnerships,” Azour said, referring to the GCC, a bloc comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

IMF projects GCC’s GDP growth for 2025 at 3per cent, down from its October forecast of a 4.2 per cent increase.

GCC countries have stepped up efforts to diversify their economies, with major initiatives like Saudi Arabia’s Vision 2030 and the UAE’s push into tourism, logistics and manufacturing aimed at reducing reliance on hydrocarbons.

“Trade diversification, acceleration of structural reforms, and improvement of productivity are all elements that will help the non-oil sector to maintain a strong level of growth,” Azour said.

Read more: UAE’s FAB profit beats estimates on strong growth in non-funded income

Global gold demand rose 1 per cent year-on-year in the first quarter of 2025 to 1,206 tonnes, driven by a sharp increase in investment demand as prices surged past $3,000 per ounce, according to the World Gold Council’s (WGC) latest Gold Demand Trends report.

The rebound in gold-backed exchange-traded funds (ETFs) was the standout driver, with investment demand more than doubling to 552 tonnes — up 170 per cent year-on-year and the highest level since Q1 2022.

ETF inflows alone reached 226 tonnes, boosted by price momentum and rising global uncertainty linked to tariff policies and recessionary fears.

“Over the past 10 months investors have returned to gold ETFs, ramping up their allocations since Q3 last year,” said Louise Street, senior markets analyst at the WGC. “Already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high.”

Gold bar and coin demand rises

Total bar and coin demand remained strong, rising 3 per cent year-on-year to 325 tonnes. This increase was largely driven by a surge in retail investment in China, which posted its second-highest quarter on record.

The strength in Eastern markets helped offset a 22 per cent decline in demand from US investors and a modest recovery of 12 tonnes in Europe, albeit from a low base in Q1 2024.

In the Middle East, gold’s traditional appeal remained evident. “Gold investment demand in the Middle East remained resilient in Q1 2025, underpinned by continued geopolitical uncertainty and positive price expectations,” said Andrew Naylor, head of Middle East and Public Policy at the WGC. “Notably, Saudi Arabia saw a 15 per cent year-on-year increase in bar and coin demand, while jewellery demand in the kingdom rose 35 per cent – bucking regional trends.”

Central banks continued to be net buyers for the 16th consecutive year, adding 244 tonnes to global reserves in Q1 2025. Although this was 21 per cent lower than Q1 2024, it was in line with the average quarterly purchase volumes recorded over the past three years.

Jewellery demand hit

Jewellery demand, meanwhile, was impacted by the record price environment, with gold hitting 20 all-time highs during the quarter.

Global jewellery volumes fell to their lowest since 2020, when Covid-related restrictions curtailed demand. Despite this, consumer spending rose 9 per cent year-on-year to $35bn in Q1, as price appreciation drove value higher.

All markets except China recorded increases in the value of gold jewellery demand.

On the supply side, gold remained relatively flat at 1,206 tonnes. A record Q1 in mine production was largely offset by slightly lower levels of recycling. Technology demand was stable at 80 tonnes compared to the same period last year.

“It’s been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors,” Street noted. “In this context, investment demand for gold has paved the way for the highest level of first quarter demand since 2016.”

The WGC expects continued demand from institutions, individual investors, and central banks, as persistent global uncertainty enhances gold’s appeal as a safe haven asset.

With a legacy dating back to 1907, Fairmont Hotels & Resorts continues to adapt its offerings to meet shifting market expectations while preserving its brand identity.

In this interview, CEO Omar Acar outlines how Fairmont is navigating expansion across key global markets — including the Middle East — prioritising sustainability, enhancing personalised guest experiences, and leveraging its historic positioning to remain competitive in today’s evolving hospitality landscape.

Fairmont has a long legacy of luxury hospitality. How do you see the brand evolving in today’s competitive landscape, particularly in the Middle East?

At Fairmont, we have been creating special moments for our guests since 1907. We count some of the most storied addresses in the world within our portfolio of hotels, each at the vibrant heart of its community and destination. For decades, we have been the place where history-defining moments happen – the signing of the United Nations Charter in San Francisco, John Lennon and Yoko Ono’s ‘bed in for peace’ in Montreal, Truman Capote’s Black and White Ball in New York City. Our hotels are at the social epicenter of every destination, and this continues to be at the core of our brand strategy. A Fairmont lobby is one of my favorite places to be. You never know who will pass by next – a couple in black tie headed to a gala or celebrating a milestone anniversary, colleagues grabbing a drink after a day of meetings, a family with young children returning after a day of adventure. This energy and life, and sense of local connection, it’s our sweet spot. It’s why a traveller wants to stay in a Fairmont hotel, why developers keep building with us.

Fairmont has several new openings and developments in the pipeline. Tell us about the most anticipated projects and what guests can expect from these properties.

Fairmont has an exceptionally strong pipeline, with30 properties in development, which is significant considering our current portfolio numbers 92 hotels in 30 countries. 2025 is a pivotal year of growth for the brand; it’s particularly exciting when we can introduce Fairmont into new destinations.

In February, we opened our first property along the southern coast of Spain, Fairmont La Hacienda Costa Del Sol. Boasting 153 rooms with stunning Mediterranean views and 158 chic Andalucian-style suites and villas, this property has something for everyone, from two 18-hole golf courses and a full golf academy, to a glamorous beach club, to a spa that is truly unique as it’s the only one in the region with sea-view facilities, including hammams, a Turkish bath, a hydrotherapy pool, and even a snow fountain. We also recently unveiled Fairmont Golden Prague, the first Fairmont in the Czech Republic, a heritage-listed landmark in the heart of Old Town at the gate of the prestigious Parížská Boulevard and on the banks of the Vltava River. The design and artworks throughout the hotel really bring to life one of our brand pillars, capturing the essence of the local culture and community.

We are continuing to see tremendous opportunities across India. We opened Fairmont Mumbai in April and will soon debut Fairmont Udaipur Palace, both of which offer curated locally- and globally-inspired dining experiences, extensive spaces for special events and celebrations, and indulgent Fairmont Spas. Fairmont developments in India are also under way in Agra, and our most recent signing, an exciting new luxury resort on the pristine beaches of Goa.

This year marks a number of major milestones as we celebrate several openings in Asia. Fairmont Tokyo, opening on July 1 as Fairmont’s first hotel in Japan, is nestled in a prime spot along Tokyo Bay, offering breathtaking views of Rainbow Bridge to the east and Tokyo Tower to the west. It’s the perfect blend of the city’s lively energy and the peaceful calm of the waterfront, making it an ideal retreat in the heart of Tokyo.

We round out the year opening the doors at Fairmont Bangkok Sukhumvit and Fairmont Hanoi in late 2025, introducing the Fairmont brand into Thailand and Vietnam. Fairmont Bangkok Sukhumvit brings a new level of comfort and style to the capital’s central business district, attracting both leisure guests with a full suite of exclusive amenities, but also business travelers as the country’s first fully integrated luxury MICE (Meetings, Incentives, Conferences and Exhibitions) hotel. Fairmont Hanoi is located in the center of Vietnam’s dynamic capital city; only a short walk to Hoan Kiem Lake and the Old Quarter, the 241-room urban resort takes inspiration from the culture and history of Thang Long.

And looking further ahead, we have several developments in Saudi Arabia that are going to be truly special. Up first, Fairmont The Red Sea will be located on an untouched coastline surrounded by islands, ancient archaeological sites, and stunning natural beauty. With 200 rooms and dining concepts that include overwater restaurants, this development in particular is an incredible opportunity to connect luxury with sustainability in one of the most remarkable destinations in the world.

With sustainability becoming a key focus in luxury hospitality, how is Fairmont integrating eco-conscious practices?

We are very proud of our longstanding work in sustainability – more than three decades ago, we made history as one of the first luxury hotel brands to launch a comprehensive environmental program, our Green Partnership Guide, and today we are equally focused on making a positive, meaningful impact. Hosting thousands of guests every day, with a footprint that extends across our in 30 countries, we know that we have a unique opportunity and responsibility to leave the world in a better place than we found it.

Fairmont is part of Accor, which has some of the most ambitious sustainability commitments across the industry. Group-wide programs range from the elimination of single-use plastics in the guest experience, to major work in the reduction of carbon emissions, including Fairmont Royal York’s history-making status as our first Zero Carbon Building. Tackling food waste is another priority, supported by tools like Orbisk, a smart camera that tracks food waste, and Chef’s Eye, which helps us analyze waste trends and adopt more sustainable practices.

For Fairmont, we’ve been particularly focused on the measurement and validation of our efforts, including the transition to a market-leading platform for data, analytics and reporting. We are also thrilled to share that we are on track for 100 percent of our Fairmont properties worldwide to receive sustainability certification by a trusted third-party such as Green Key, Green Key Global or Green Globe. This year, we are exploring certification by Audubon for all our Fairmont managed golf courses, and special sustainability accreditation for our events teams with the Events Industry Council.

We continue with brand programmes like Bee Sustainable, through which we build habitats for critical pollinator bees and harvest our own honey from on-property honeybee hives. Many of our hotels are also leading the way with unique green initiatives. For example, Fairmont Orchid, Fairmont Kea Lani and Fairmont Mayakoba all are active in the reforestation of their local coral reefs. Fairmont Singapore grows fresh produce sustainably through its very own aquaponics farm; Fairmont Jakarta implemented a careful food segregation system to repurpose surplus food and minimise organic waste; and Fairmont Makati made a significant investment in an onsite water bottling plant, eliminating the usage of 380,000 plastic water bottles per year. These efforts reflect our shared mission to demonstrate that luxury and environmental responsibility can coexist seamlessly.

How is Fairmont adapting to the changing expectations of high-net-worth individuals, particularly in terms of personalised and immersive experiences?

I believe strongly that this starts and stops with our colleagues, our greatest strength. We’ve recently completed an in-depth brand repositioning for Fairmont. There are many layers to the work, but at its core, we are empowering our Fairmont colleagues to ‘make special happen’ for our guests. This isn’t always the over-the-top gestures, though it certainly can be. In practice, what this looks like is different for every guest.

I had the pleasure of leading our annual global leadership conference for Fairmont last year in Istanbul, and after presenting the new brand positioning, we invited some of the GMs on stage to share some of their stories with Fairmont. Their experiences were so heartfelt, from one colleague hand-drawing a map to show the best beaches to find sea turtles, distracting a child getting antsy while waiting on his family to finish breakfast; to a welcome note, chew toys, and hotel-baked treats left specifically for a furry friend of a special guest; to navigating off the beaten path to a hard to find but perfect spot to fulfill an amateur ice skater’s dream of skating on wild ice in the middle of the forest.

To equip our colleagues with the right tools and training to bring this to life in our hotels – knowing our guests, listening and observing, envisioning what will make their stay extra special, in a meaningful and memorable way – we are rolling out new service culture training for all team members. This is a significant commitment worldwide, but a critical one in ensuring that our colleagues are able to deliver on our brand promise of turning moments into special memories for every guest that visits.

We are also able to offer a more bespoke experience, tailored to each individual guest, through Fairmont’s exclusive hotel-within-a-hotel, Fairmont Gold. More than half of our hotels around the globe have this elevated offering, which is set apart by private check-in, dedicated staff and concierge team, private lounge, distinctive style and design elements, and exclusive amenities such as complimentary breakfast and afternoon canapes. Though I am often wowed by our teams, the Fairmont Gold experience really takes it to another level. Think of it as a residential stay, a “home away from home”, but with even more surprises.

As CEO, what is your long-term vision for Fairmont, and how do you see the brand continuing to innovate and set trends within the luxury hotel industry?

Fairmont is a heritage brand, which dates back more than 115 years. To take this brand forward is both a tremendous honor and responsibility. The key is learning from our past while building upon it.

Fairmont has long played a role in the most special moments in people’s lives. From the world-changing, like safely welcoming home the Apollo 11 astronauts from their history-making trek to the moon, to those smaller more intimate occasions which are most meaningful to those celebrating, such as a milestone birthday or anniversary — we have been there. Now, it’s up to us to create new moments, new ways for our guests to celebrate with us, new experiences, new chapters in the Fairmont history book. This starts with the launch of our new brand campaign this May 2025.

And it continues with a spirit of innovation and fun. Whether we are exploring groundbreaking new AI technologies or never-before-seen digital solutions for our important events clients, making new strides in eco-conscious operations or holistic wellbeing practices, or unveiling unexpected brand partnerships, there are many more milestone moments to come.

Growth obviously remains a priority, but we will do so thoughtfully and intentionally. With Fairmont, one of our greatest strengths is being a connector; this is key to our development strategy. With every new signing and development project, we make sure it is located at the heart of the destination, with the same connection to local culture and community, which upholds the tradition set by The Plaza, The Savoy, and which has been carried forward with the newest additions to our portfolio, such as Fairmont Doha, Cape Grace, and Fairmont Golden Prague.

Fairmont has made significant strides in expanding its footprint in the Middle East. What role does the region play in the brand’s overall growth strategy, and are there any upcoming partnerships or initiatives you’re particularly excited about?

The Middle East is a cornerstone of Fairmont’s global growth strategy, driven by transformative initiatives such as Saudi Vision 2030 and Dubai Tourism Strategy 2025. These programmes aim to position the region as a premier tourism hub, with a focus on leisure, cultural, and religious travel.

Fairmont aligns its developments with these ambitions, exemplified by upcoming property openings such as Fairmont The Red Sea, Fairmont Ajdan Al Khobar, and Fairmont Rua Madinah, which reflect the region’s growing demand for luxury travel experiences.

As we look ahead to summer 2025, what emerging trends do you foresee shaping the preferences of luxury travelers, and how do you expect the hotel industry to evolve to meet these demands?

Sustainability continues to be a defining factor, with eco-conscious travelers expecting hotels to integrate greener practices into their operations like energy efficiency and waste reduction.

Contactless features, personalised services, and cutting-edge technologies with enhanced artificial intelligence and virtual reality will play a pivotal role in enhancing guest experiences. Holistic health and wellness also continue to be a key focus, as travelers seek offerings, such as our partnership with Pillar Wellbeing at Fairmont Doha, that nourish the mind, body, and soul, as well as a deeper appreciation for one’s mental wellbeing. As for communication channels, social media and word of mouth will continue to shape travel decisions, making it imperative for brands to build authentic connections with their audiences across different platforms.

On the development side, Fairmont continues to lean into our expertise in branded residential segment, seeing an increasing appetite for accommodations that offer the service, amenities, design and lifestyle of a trusted brand and luxury hotel, especially in the Middle East. Fairmont is uniquely poised to meet all these demands, combining innovation, luxury, and positive impact to set the course for a successful 2025 and beyond.

Dubai International Airport (DXB) will eventually be decommissioned once Al Maktoum International Airport (DWC) is fully operational, Dubai Airports CEO Paul Griffiths said at the Arabian Travel Market (ATM) this week.

“The current thinking is when DXB gets to a point where we’ve got enough capacity at DWC to make the complete transition, we will move every single service to DWC.”

“There is little sense in operating two major hubs with such close proximity to one another,” he said, as reported by Skift.

DXB, which opened in 1960, has grown to become one of the world’s busiest airports, handling more than 92 million passengers in 2023.

Griffiths indicated that DXB may be too outdated to operate by the time DWC is fully developed.

“The other point is that DXB by then, every single asset at DXB will be close to the end of its useful operating role, so the economics of keeping DXB open will not be possible unless we invest a huge amount of money,” he added.

DWC to absorb DXB operations within a decade

The operators of both airports have confirmed that all services at DXB will transition to DWC, which is expected to fully absorb operations within the next 10 years.

Griffiths reiterated that the shift would allow the current DXB site to be redeveloped.

“We’re right up against Sharjah in the north, so it will spread the city out and actually make it perhaps a little easier than the traffic problems that we’ve got today,” he said.

In April 2024, Sheikh Mohammed bin Rashid Al Maktoum — Vice President, Prime Minister and Ruler of Dubai — approved the designs for a new Dhs128bn passenger terminal at Al Maktoum International Airport.

Al Maktoum International Airport will enjoy the world’s largest capacity, reaching up to 260 million passengers.

It will be five times the size of the current Dubai International Airport, and all operations at Dubai International Airport will be transferred to it in the coming years, said Sheikh Mohammed.

“The airport will accommodate 400 aircraft gates and feature five parallel runways. New aviation technologies will be employed for the first time in the aviation sector,” he added.

The completed airport will cover a vast 70-square-kilometre site.

Underground train to ease passenger movement

According to Khaleej Times, Griffiths also revealed plans for an extensive underground train system at DWC to streamline passenger movement and reduce walking distances.

“The underground system will be very comprehensive and pretty quick to reduce travel distance,” he said.

“It is such a large site that it would be about a 20-minute journey time and we have to make it fast, efficient and competitive in terms of circulation of transfer passengers to get to and from the airport.”

Griffiths said that the team at DXB had reviewed several designs and agreed that the train would need to be a seated service, with the journey expected to take between 15 and 20 minutes.

Read more: Sheikh Mohammed: Al Maktoum Airport will replace Dubai International in future

Ras Al Khaimah’s residential real estate stock is expected to double by 2030, underpinned by growing tourism demand and large-scale developments such as the Wynn Al Marjan Island resort, according to real estate consultancy Savills.

More than 11,000 new residential units are projected for delivery by the end of the decade, based on launches through 2024.

Off-plan sales are dominating activity in 2024, with Al Marjan Island, Mina Al Arab and Al Hamra recording notable growth in both capital values and rents.

“Branded residences now account for 32 per cent of expected supply on Al Marjan Island,” said Andrew Cummings, Head of Residential Agency at Savills Middle East. “This reflects growing appetite for lifestyle-led, premium real estate investments.”

Sales transaction values have surged past Dhs11bn in 2024, with Sunshine Bay on Al Marjan Island selling all 240 units in three months at an average of Dhs2,200 per sq ft.

British nationals made up over 40 per cent of buyers, part of a broader international pool spanning 37 nationalities.

The momentum is fuelled by rising visitor numbers, with the emirate recording 1.28 million tourists in 2024 — a 5.1 per cent year-on-year increase.

Air arrivals rose 28 per cent to 661,000, underlining Ras Al Khaimah’s emergence as a regional short-stay destination.

Tourism growth, anchored by beach resorts, desert landscapes and Jebel Jais attractions, is set to accelerate further with the 2027 opening of Wynn Al Marjan Island.

The 62-hectare project will feature 1,542 rooms and the UAE’s first commercial gaming operation.

RAK is more than just a tourist draw

“RAK’s evolution is now beyond tourism alone,” said Rachael Kennerley, Head of Research at Savills Middle East. “Infrastructure, education and lifestyle amenities are aligning to make it a long-term investment destination.”

Improved schooling and international dining options are also reinforcing the emirate’s appeal.

Seven schools received ‘good’ ratings in the 2023-24 academic year, up from three the previous year, with the British School Al Hamra rated ‘very good’ — a first for the Northern Emirates.

Savills is set to launch Anantara Mina Ras Al Khaimah Residences in April 2025, offering 84 units starting fromDhs2.2 m with handover expected in Q3 2028.

Read: Why RAK’s Al Marjan is set for a big ‘Wynn’