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Ramadan 2025: Snap MENA’s Georges Odeimi on the key trends unfolding on the platform

The business solutions lead at Snap MENA shares his insights into how Snapchatters are using the platform during Ramadan

Neesha Salian
Neesha Salian

04 March, 2025

Ramadan 2025: Snap MENA’s Georges Odeimi on the key trends unfolding on the platform
Image: Supplied

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With Ramadan beginning, Snapchat, the social media platform, is witnessing a surge in user activity and engagement. With over 10 billion Stories viewed daily in Saudi Arabia alone during the Holy Month last year, Snapchat has become a central hub for connecting, sharing experiences, and celebrating Ramadan traditions.

In this interview, Georges Odeimi, business solutions lead at Snap MENA, shares his insights into how Snapchatters are using the platform during Ramadan.

What are the best practices for brands to maximise engagement and ROI during Ramadan?

The expectations of consumers in the digital era are higher than ever – they are looking for brands that can offer new immersive, personalised experiences.

During Ramadan, brands should stay authentic to the Holy month, and approach the season in two distinct phases: an engagement and connection phase, and a sales phase as the month progresses toward Eid.

In the engagement phase, brands should focus on driving brand health and brand love by creating highly viewable placements using unique ad formats such as AR experiences. These formats allow brands to connect with Snapchatters in meaningful ways, building lasting impressions that go beyond simple transactions.

As Ramadan enters its sales phase, particularly in the weeks before and during Eid, brands should shift focus toward driving sales and maximising ROI through lower-funnel strategies. Snapchatters are highly active in discussing and sharing their purchase decisions on the platform before and after buying, making it a key time for brands to be front of mind during these conversations.

Innovative technologies such as AR allow brands to build stronger connections with consumers and increase brand awareness and purchase intent during both phases. Our annual AR Ramadan Mall – which uses our pioneering AR technology to create a space where Snapchatters can engage with their favourite retailers — reached an impressive 16 million shoppers last year. Offering these types of immersive, shareable experiences will be key to maximising engagement during the Ramadan season.

What innovations or trends should brands watch for in digital marketing and social commerce?

Brands should keep a close eye on the continued rise of social commerce and the potential of AR to enhance the shopping experience. Shopping becomes a social event during Ramadan and brands have the opportunity to raise awareness, gain consideration and drive conversion on a platform during Ramadan.

Creating a retail experience that is going to stand out with the likes of AR is therefore extremely important, especially in countries such as Saudi Arabia, where AR-driven shopping experiences can lead to a 94 per cent higher conversion rate. This can be attributed to the fact that AR helps to supplement the path to purchase by elevating the experience, allowing for brands to be part of the whole journey end to end — particularly for CPG brands when most purchases are made using mobile phones.

A recent example of a brand using the power of AR on Snap to strengthen its positioning during Ramadan is Maybelline. Setting out to cut through the increase in content during the Holy Moth and reach 21-24-year-olds, Maybelline opted for a multi-format approach: organic, paid and creator collaboration.

Choosing to leverage Snapchat’s Total Takeover suite, Maybelline used First Commercial, First Story, and First Lens, owning four of five Snapchat tabs for an entire day. In a series of slick creatives which tapped into the target demographic’s culture and lifestyle, Maybelline set itself apart from competitors, expertly harnessing Snap tools to bring its offering to life. Driving a 1.04 per cent CTR compared to a 0.2 per cent CTR benchmark, and a five-point lift in Ad Awareness, Maybelline’s Snapchat campaign was a clear success, delivering positive shifts on action and intent-oriented behaviours.

How is social media transforming the way brands connect with consumers, especially during key seasonal moments like Ramadan?

Social platforms today have an opportunity to transform brand-consumer interactions in entirely new ways. They’re helping support the consumer in their buying journey from challenge to discovery to testing to buying and later to reviewing. Social platforms are making it easier than ever by providing access to information and tools that can be leveraged by consumers to make much more informed buys. For example, Snapchat’s role as a platform for close connections is central to its success. Shoppers in Saudi and UAE rate friends and family as the most influential factors in purchase decisions, making it imperative for brands to create campaigns that resonate with these connections.

This is why we’ve chosen Saudi Arabia and the UAE to launch our Sponsored Snaps this Ramadan. For the first time, we’re giving brands the chance to Snap like a Snapchatter with this game-changing new ad placement tool which has been designed to empower businesses to connect with the Snapchat community in more innovative ways. Sponsored Snaps will allow brands to deliver full-screen vertical video messages directly into Snapchatters’ Chat inboxes, enabling deeper engagement with audiences.

By leveraging narrative-driven content that honours the traditions of the region, brands can position themselves as integral parts of these key moments.

With evolving consumer behaviours, how should brands adapt their digital strategies to stay ahead in an increasingly competitive social media landscape?

Brands need to embrace innovation to meet the needs of consumers today. Augmented reality has always been at the heart of Snapchat’s innovation, shaping the way people engage with their world in the most meaningful and personalised ways.

Over the years, our AR technology has evolved beyond just entertainment — it has become a powerful tool for self-expression, discovery, commerce, and cultural storytelling. From face Lenses to immersive AR try-ons, location-based experiences, and real-time utility, our advancements have continuously redefined how brands and communities interact. We’ve moved from playful filters to solutions that empower brands to drive business impact; we’ve enabled creators to build their own AR worlds; and helped communities connect through shared experiences.

In MENA, over 80 per cent of consumers express interest in using AR to interact with products before purchasing. By creating virtual shopping experiences like those in the Snap AR Ramadan Mall, advertisers can bridge the gap between online and offline activations, trade and marketing by bringing to life experiences that users can access from the comfort of their phones.

How do user behaviours and engagement patterns shift on Snapchat during Ramadan?

Ramadan is a time of reflection, unity, and togetherness, and as the number one platform for staying connected in the region, we see these values reflected in the way our community engages during the Holy Month. Last year, in Saudi Arabia alone, Snapchatters viewed over 10 billion Stories per day during Ramadan, underscoring the growing desire for authentic, shared experiences during this special time. Evenings, particularly after Iftar, see a spike in activity as users share moments, stay entertained, and connect with loved ones, both near and far. We know Snapchat is a key communication platform for GCC locals to stay connected with family members who are geographically distant, which is particularly important during Ramadan.

Over recent years we have also seen Snapchatters embracing healthier celebrations during Ramadan, with more users engaging in physical activities, from exercise to outdoor entertainment. Of course, shopping behaviours also peak, and decisions are more influenced than ever by close social circles, with friends and family playing a key role in shaping purchase choices. Whether for Iftar essentials or Eid celebrations, users are increasingly turning to Snapchat to stay connected and make informed shopping decisions, reflecting the heightened importance of community during this special time.

What are the key content trends among Snapchat users during this season?

During the season we see a noticeable shift toward more culturally relevant, emotionally engaging, and purpose-driven content. Themes of food, family, spirituality, and celebration take centre stage, as Snapchatters seek uplifting and culturally relevant storytelling. Iftar and Suhoor moments dominate conversations, with recipe content and food-related AR Lenses becoming a staple. Interestingly, we also see an increase in beauty-focused content, complementing the interest in entertainment and food as Snapchatters embrace the spirit of togetherness with more social gatherings.

When it comes to our large ecosystem of creators on the platform, we see comedy and lighthearted entertainment also grow in popularity, as users look for relatable, humour-driven content that captures the nuances of Ramadan routines. Moving closer to Eid, shopping content and product recommendations gain momentum, becoming an essential period for brands to engage with captive audiences in a meaningful way.

Which audience segments become more active on Snapchat, and how do their preferences evolve?

As mentioned, Snapchat’s engagement intensifies during Ramadan, and this is across all demographics — as we know even grandparents use Snapchat in the GCC. However, with 90 per cent of 13-34-year-olds in Saudi Arabia using Snapchat, Gen Z and Millennials are particularly active.

The digitally native audiences look for content that complements their Ramadan experience — whether it’s entertaining Stories, engaging AR experiences, or interactive shopping journeys.

What unique opportunities does Ramadan present for CPG brands on Snapchat?

When it comes to CPG brands, Ramadan offers a unique opportunity to deepen emotional connections with consumers, as categories including food, beverage, personal care, and beauty are at an all-time high after entertainment. But it’s not a time to launch new products, but rather a time to reinforce brand loyalty by aligning with the values of community, tradition, and celebration.

From the minute Snapchatters open the app, they are greeted by the camera, a space where brands can create immersive experiences and build real emotional connections through the likes of AR lenses. Staying connected with friends and family, Snapchatters are also keeping up with their favourite creators — and creators tell us that they love Snapchat because it’s a place where they can be authentic. Brands can tap into this trusted storytelling, working with creators to integrate their products and services naturally into conversations.

There are also a host of opportunities to strategically advertise on the platform around moments that mean the most to Snapchatters — whether it’s sharing Iftar with family or reflecting on personal growth. By strategically advertising around relevant content, brands can stay top-of-mind without feeling intrusive, making authentic connections that go beyond just selling, and Snapchat provides the ideal platform for this deeper engagement.

How can brands leverage Snapchat’s AR, Spotlight, and Stories to create engaging Ramadan campaigns?

Brands that succeed during Ramadan are those that understand the nuances of the season and tap into Snapchat’s full suite of communications to create immersive experiences. At a time that is heavily saturated with brand events, offers and launches, innovative tools must be integrated into brand strategies to stand out. We know that AR has the highest attention level of any other format in the media realm, which is why this year, we’ve redefined our offering for brands with the introduction of more AR experiences.

AR Lenses provide an unparalleled opportunity for brands to engage audiences in a fun and interactive way, whether it’s through try-on experiences, gamified storytelling, or themed lenses that celebrate the spirit of Ramadan.

In previous years, we’ve seen brands use AR to create things such as virtual Iftar gatherings and interactive Eid greeting cards. Spotlight is another powerful tool to use during Ramadan with snackable, creator-led content gaining traction, brands can collaborate with influencers to deliver engaging storytelling that feels native to the platform.

This year, a new experience has been introduced on Snapchat. HAZAR FAZAR will bring to life a series of branded lenses that are opened by riddles and showcase unique characters — merging tradition and innovation to spotlight stories deeply rooted in GCC culture.

By adopting a multi-format strategy that combines these elements, brands can seamlessly integrate into Ramadan traditions and make a lasting impact during the Holy Month.

Dubai real estate sales hit Dhs51.1bn in Feb; see top performing areas

Dubai’s February property sales have seen a 449 per cent increase in value over the past five years

Gulf Business
Gulf Business

04 March, 2025

Dubai real estate sales hit Dhs51.1bn in Feb; see top performing areas
Image: Supplied

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Dubai’s real estate market maintained its momentum in February, with total property sales reaching Dhs51.1bn, marking a 39.91 per cent increase in value compared to last year.

According to a market update issued by fäm Properties, the city recorded 16,099 transactions last month, a 35.5 per cent increase in volume over February 2024, making it one of the best-performing months on record.

Data from DXBinteract highlighted a remarkable 99.7 per cent surge in villa sales, reaching Dhs 18.8bn across 3,679 transactions. Plot sales also witnessed substantial growth, rising 74.7 per cent in volume to 608 transactions, totalling Dhs9.6bn

Apartment sales accounted for Dhs 21.4bn, with a 21.3 per cent increase in volume to 11,364 units. Meanwhile, commercial property transactions totalled Dhs 1.2 billion from 447 deals, reflecting a 40.1 per cent rise in volume.

The average price per square foot climbed by 3.4 per cent to Dhs1,551.

“The data once again highlights the robust nature of Dubai’s real estate market and the steady growth it has experienced over the past few years,” said Firas Al Msaddi, CEO of fäm Properties. “This reinforces Dubai’s position as a safe and reliable hub for real estate investment, further boosting investor trust and attracting attention from local, regional, and global markets.”

Dubai’s February property sales have seen a 449 per cent increase in value over the past five years, growing from Dhs9.3bn (4,100 transactions) in 2020 to Dhs36.5bn (11,900 transactions) in 2024.

The most expensive transaction in February was a luxury villa in Hadaeq Sheikh Mohammed Bin Rashid, which sold for Dhs 140m. The most expensive apartment sale was at The Rings – 1 in Jumeirah Second, fetching Dhs 116m.

First-time sales from developers significantly outpaced resales, making up 66 per cent of transactions by volume and 62 per cent by value.

Read: Dubai real estate prices drop 0.57% in Jan

Market segmentation

  • Properties over Dhs5m: 9 per cent of total sales
  • Dhs1-2m range: 31 per cent
  • Below Dhs1m: 25 per cent
  • Dhs2-3m: 19 per cent
  • Dhs3-5m: 15 per cent

Dubai’s top five performing areas (by sales volume)

  1. Wadi Al Safa 5 – 1,297 units
  2. Jumeirah Village Circle – 1,246 units
  3. Dubai Marina – 915 units
  4. Business Bay – 878 units
  5. Dubai South – 819 units

Best-selling projects

Off-Plan apartments

  • Franck Muller Vanguard: 250 units | Dhs436.9m
  • Golf Dale: 162 units | Dhs297.4m
  • Saria: 139 units | Dhs95.2m
  • Golf Acres: 134 units | Dhs243.9m
  • Skyscape: 131 units | Dhs321.2m

Off-Plan villas

  • La Tilia At Villanova Phase 2: 205 units | Dhs678.7m
  • La Tilia At Villanova Phase 1: 195 units | Dhs647.2m
  • Reportage Village 1: 175 units | Dhs226m
  • The Valley – Kaia: 106 units | Dhs318.1m
  • Nad Al Sheba Gardens Phase 7: 90 units | Dhs455.1m

Ready apartments

  • Lakeside: 51 units | Dhs19.7m
  • P23: 45 units | Dhs14.9m
  • Falcon Tower: 40 units | Dhs111.4m
  • KhK 24: 35 units | Dhs17.8m
  • Sky Courts: 33 units | Dhs20.7m

Ready villas

  • Nad Al Sheba Gardens Phase 7: 63 units | Dhs889.5m
  • Reem – Mira Oasis Community: 16 units | Dhs46.1m
  • Reem – Mira Oasis Community 3: 11 units | Dhs35.7m
  • Greenview 2: 10 units | Dhs27.6m
  • Reem – Mira Oasis Community 2: 9 units | Dhs26m

Bitcoin falters as optimism wanes on Trump’s crypto reserve plan

The world’s largest cryptocurrency, bitcoin, rose 2.4 per cent from Friday’s levels, to $86,292, but was down 8 per cent from Sunday.

Reuters
Reuters

04 March, 2025

Bitcoin falters as optimism wanes on Trump’s crypto reserve plan
Image credit: Getty Images

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Bitcoin backpedaled on Monday after an early rise following US President Donald Trump’s weekend proposal for a national strategic reserve of cryptocurrencies.

Optimism on digital currency after Trump’s Sunday post on Truth Social turned to caution as market participants awaited more details about this crypto initiative.

The world’s largest cryptocurrency, bitcoin, rose 2.4 per cent from Friday’s levels, to $86,292, but was down 8 per cent from Sunday.

Trump’s executive order

Trump said his January executive order on digital assets would create a stockpile of currencies, including bitcoin, ether, XRP, Solana and Cardano. The names had not previously been announced.

Read-Bitcoin jumps, shares cling to hopes for tariff relief

Bitcoin and ether will be at the heart of this reserve, he said in a post on Sunday that sent bitcoin up by a fifth from the November lows. The token has been sliding since mid-January due to disappointment Trump had not followed through on pledges to loosen regulation.

Ether was down 4.3 per cent from Friday’s level, at $2,127.10, but sank nearly 16 per cent from Sunday.

XRP tumbled more than 15 per cent from Sunday’s levels to $2.48, but surged 25 per cent from Friday. Solana also weakened, down 16 per cent from Sunday to $148.89, but was up 1.6 per cent from Friday.

Cardano sank 19 per cent from Sunday to $0.8940, and fell 3 per cent from Friday.

Anthony Pompliano, founder and chief executive officer at Professional Capital Management, and one of the biggest crypto investors, said in a letter to his clients on Monday that he was not in favor of a strategic crypto reserve.

“Even though Solana is our second largest crypto position, and various public equities I hold are heavily correlated to altcoins, I still think this decision on a wide-ranging crypto strategic reserve is an unforced error that will be regretted in the future,” Pompliano said in a letter to investors.

He warned that the emerging policy appeared to be “a random smattering of speculative tools that will enrich the insiders and creators of these coins at the expense of the US taxpayer.”

Cameron and Tyler Winklevoss, who run the Gemini crypto exchange, said on X, formerly known as Twitter, also expressed concern about the reserve. They noted that only bitcoin meets the bar for a store of value as a reserve asset, but were not sure about the other cryptocurrencies.

Trump’s strategic reserve: A positive sign for the crypto industry

Still, Trump’s promise of a strategic reserve has generated excitement for the crypto industry, which has languished in recent weeks.

Bitcoin fell more than 17 per cent in February, its biggest monthly percentage fall since June 2022. It lost more than a third of its price since topping $105,000 in early January.

Its rally since Trump’s November election was spurred by optimism that he would champion a strategic bitcoin fund and end former President Joe Biden’s crackdown.

“Ironically, a currency that was designed to be isolated from government interference and decentralized, is now reliant on the US government for its fortunes,” said Kathleen Brooks, research director at XTB, reiterating that the $100,000 level was an “obvious target” for bitcoin.

Beyond a flurry of appointments of crypto-friendly officials when Trump took office, there has been little concrete news so far around that policy for investors.

IG market analyst Tony Sycamore wrote that the Trump announcement has raised concerns.

The funding for cryptocurrency purchases in the reserve could come from US taxpayers. But alternatively, they could come from cryptocurrencies seized in law enforcement actions, he said, which “isn’t anywhere near as bullish as it simply represents a transfer between accounts rather than new buying entering the market.”

Trump hits Canada, Mexico, China with steep tariffs

The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade went live at 12:01am EST (0501 GMT)

Reuters
Reuters

04 March, 2025

Trump hits Canada, Mexico, China with steep tariffs
Image credit: Getty Images

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US President Donald Trump’s new 25 per cent tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20 per cent, launching new trade conflicts with the top three US trading partners.

The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade went live at 12:01am EST (0501 GMT).

Read: Trump’s tariffs and implications for Middle East businesses

China responded immediately after the deadline, announcing additional tariffs of 10 per cent-15 per cent on certain US imports from March 10 and a series of new export restrictions for designated US entities.

Canada and Mexico, which have enjoyed a virtually tariff-free trading relationship with the US for three decades, were poised to immediately retaliate against their longtime ally.

Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25 per cent tariffs on C$30bn ($20.7bn) worth of US imports, and another C$125bn ($86.2bn) if Trump’s tariffs were still in place in 21 days.

“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.

Ontario Premier Doug Ford told NBC that he was ready to cut off shipments of nickel and transmission of electricity from his province to the US in retaliation.

Mexican President Claudia Sheinbaum was expected to announce her response during a morning news conference in Mexico City on Tuesday, the country’s economy ministry said.

Stacking China Tariffs

The extra 10 per cent duty on Chinese goods adds to a 10 per cent tariff imposed by Trump on February 4. The cumulative 20 per cent duty also comes on top of tariffs of up to 25 per cent imposed by Trump during his first term on some $370bn worth of US imports.

Some of these products saw US tariffs increase sharply under former president Joe Biden last year, including a doubling of duties on Chinese semiconductors to 50 per cent and a quadrupling of tariffs on Chinese electric vehicles to over 100 per cent.

The 20 per cent tariff will apply to several major US consumer electronics imports from China previously untouched by prior duties, including smartphones, laptops, videogame consoles, smartwatches and speakers and Bluetooth devices.

China’s new tariffs announced on Tuesday targeted a wide range of US agricultural products including certain meats, grains, cotton, fruit, vegetables and dairy products.

It also added 15 US entities to its export control list and 10 US entities to its unreliable entity list.

The state-backed Global Times newspaper said on Monday Beijing’s retaliation would most likely target US agricultural and food products.

US farmers were hard hit by Trump’s first-term trade wars, which cost them about $27bn in lost export sales and conceded share of the Chinese market to Brazil.

Recession fears

The tariffs on Mexican and Canadian products could have much deeper repercussions for a highly integrated North American economy that depends on cross-border shipments to build cars and machinery, refine energy and process agricultural goods.

“Today’s reckless decision by the US administration is forcing Canada and the US toward recessions, job losses and economic disaster,” Canadian Chamber of Commerce CEO Candace Laing said in a statement.

She said the US tariffs will fail to usher in a “golden age” coveted by Trump but instead raise costs for consumers and producers and disrupt supply chains. “Tariffs are a tax on the American people.”

Matt Blunt, president of the American Automotive Policy Council representing Detroit automakers, called for vehicles that meet the US-Mexico-Canada Agreement’s regional content requirements to be exempted from the tariffs.

Even before Trump’s tariffs announcement, US data on Monday showed factory gate prices jumped to a nearly three-year high, suggesting that a new wave of tariffs could soon undercut production.

Trump’s confirmation that the tariffs would proceed sent financial markets reeling with global stocks tumbling and safe-haven bonds rallying. Both the Canadian dollar and Mexican peso fell against the greenback.

Piling on

Trump has maintained a blistering pace of tariff actions since taking office in January, including fully restored 25 per cent tariffs on steel and aluminum imports that take effect March 12, rescinding prior exemptions.

Trump’s “America First” agenda, aimed at redrawing trade relationships in favor of the US, is expected to be a centerpiece of his Tuesday night address to a joint session of Congress.

Trump on Saturday opened a national security investigation into imports of lumber and wood products that could result in steep tariffs. Canada, already facing 14.5 per cent US tariffs on softwood lumber, would be hit particularly hard.

A week earlier, Trump revived a probe into countries that levy digital services taxes, proposed fees of up to $1.5m on every Chinese-built ship entering a US port and launched a tariff investigation into copper imports.

These add to his plans for higher “reciprocal tariffs” to match the levies of other countries and offset their other trade barriers, a move that could hit the European Union hard.

Al-Futtaim Family Office invests in China’s BYD as automaker raises $5.59bn

The UAE’s Al-Futtaim Family Office is a key investor in the share sale, and the two firms are planning on forming a strategic partnership, according to BYD

Reuters
Reuters

04 March, 2025

Al-Futtaim Family Office invests in China’s BYD as automaker raises $5.59bn

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Chinese electric vehicle maker BYD said on Tuesday it had raised $5.59bn in a primary share sale that was increased in size, making it the largest of its kind in Hong Kong in four years.

The company said it sold 129.8 million primary shares in the deal, up from the original 118 million shares planned when the deal launched on Monday.

BYD’s Hong Kong shares opened down 8 per cent on Tuesday, in line with the discount the stock was sold at in the deal, while the Hang Seng Index was off 1.5 per cent.

BYD said the transaction was the largest equity follow-on offering globally in the automotive sector in the past decade.

The United Arab Emirates-based Al-Futtaim Family Office was a key investor in the share sale, and the two firms were planning on forming a strategic partnership, BYD said. It did not say how much the family had invested.

Most Chinese automakers have eyed the Middle East to grow their overseas sales in recent years.

Leveraging its competitive lineup of affordable battery-powered vehicles, BYD has emerged rapidly to be China’s largest automaker since 2022.

Over 90 per cent of BYD’s total sales of 4 million cars in 2024 were in China, where it accounted for more than a third of the total sales of pure electric and plug-in hybrids in the world’s largest auto market.

BYD sold the shares at HK$335.20 ($43.11) each, a 7.8% discount to the stock’s closing price of HK$363.6 on Monday.

The shares were marketed in a price range of HK$333 to HK$345 per share each in the accelerated book build.

BYD’s share sale is the largest of its kind in Hong Kong since 2021, when Meituan raised $6.9 billion, according to LSEG data.

The deal reflects increasingly positive sentiment in Hong Kong and China, especially in the tech sector following a high level summit of tech executives led by Chinese President Xi Jinping. China policymakers have also signalled a higher level of support for the country’s business private sector.

BYD’s Hong Kong shares have risen 36.38 per cent so far this year while its Shenzhen-listed listed stock has rallied 27.4 per cent on the back of the improved tech sector sentiment.

The company plans to use the proceeds to invest in research and development, expand overseas businesses, supplement working capital, and for general purposes.

The automaker has been accelerating its expansion to add production facilities and is hiring more workers as it targets to sell 5 million to 6 million cars in 2025, on par with General Motors and Stellantis globally. BYD said it had nearly 1 million employees as of early September, more than Toyota and Volkswagen each had.

BYD in February launched 21 models of electric and plug-in hybrid models cars priced from $9,555 to be equipped with its God’s Eye smart driving system to stay competitive at home.

It has also been ramping up export efforts, with Brazil its largest overseas market in 2024. In Europe, the automaker has launched new hybrid models as its EVs face an additional 17 per cent tariff in the region.

A Citigroup analysis said BYD raising the money offshore in Hong Kong would allow the company to expedite its international business plans.

“BYD has a lot of free cash flow and net cash domestically in China, but it’s not flexible and costs a lot to transmit the RMB from China into the currency outside China,” Citi analyst Jeff Chung wrote in a research note.

ADNOC, OMV to establish $60bn global polyolefins entity

Borouge Group International will be jointly controlled as an equal partnership between ADNOC  and OMV, with OMV injecting EUR1.6bn cash into the consolidated entity to equalise shareholding

Gulf Business
Gulf Business

04 March, 2025

ADNOC, OMV to establish $60bn global polyolefins entity
Image: ADNOC

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The Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have agreed to merge their holdings in Borouge and Borealis, forming Borouge Group International, which will acquire North American polyethylene producer Nova Chemicals Corporation for $13.4bn, including debt.

The deal will create a $60bn global polyolefins giant, making Borouge Group International the fourth-largest polyolefins producer by nameplate capacity, with 13.6 million metric tonnes per annum (mtpa) across Europe, the Middle East, and North America.

Strategic expansion and financial structure

ADNOC has signed a share purchase agreement with Mubadala Investment Company’s Nova Chemicals Holdings, acquiring 100 per cent of Nova Chemicals.

The acquisition, combined with the planned recontribution of Borouge-4—set for completion by end-2026 at a cost of $7.5bn — is expected to be a major catalyst for the new entity’s growth.th.

Borouge Group International will be headquartered in Austria, with regional hubs in the UAE, Canada, the US and Singapore.

The company plans a $4bn capital raise in 2026 to secure MSCI index inclusion and maintain an investment-grade credit rating, targeting net leverage of up to 2.5x EBITDA.

ADNOC and OMV will hold equal 46.94 per cent stakes in Borouge Group International, exercising joint control. The remaining 6.12 per cent will be in free float, subject to UAE regulatory approval and shareholder exchanges.

“These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy,” said Dr Sultan Ahmed Al Jaber, ADNOC MD and group CEO. “We are creating a new industry powerhouse, solidifying Abu Dhabi’s status as a leader in the chemicals sector while driving value for shareholders.”

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Synergies, dividend policy, and growth prospects

Borouge Group International is expected to generate over $7bn in EBITDA annually, leveraging $500m in synergy potential, with 75 per cent realised within three years.

The company will maintain a 90 per cent dividend payout ratio, targeting a minimum annual payout of 16.2 fils per share, representing a 2 per cent increase over Borouge’s 2024 dividend per share (DPS).

OMV CEO Alfred Stern called the deal a “momentous step” in OMV’s chemicals strategy. “With ADNOC, we are building a global polyolefins leader, enhancing value creation, and accelerating our transition toward circular economy solutions,” he said.

Regulatory approvals and sustainability commitments

The transaction is expected to close in Q1 2026, subject to regulatory approvals and other customary conditions.

Borouge Group International will focus on sustainability and circular solutions, building on initiatives from Borealis, Borouge, and Nova Chemicals.

Both Borealis and Borouge have committed to Scope 1 and 2 net-zero emissions before 2050, with Borouge Group International’s sustainability strategy to be announced post-completion.

ADNOC’s XRG to oversee chemicals strategy

Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, its global chemicals investment arm.

XRG aims to maximise value creation and leverage synergies across the group’s expanding international chemicals portfolio.

Read: ADNOC secures long-term LNG deal with Japan’s Osaka Gas

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