US President Donald J Trump has signed an executive order directing the creation of a US sovereign wealth fund (SWF), a move designed to maximise the long-term stewardship of the nation’s wealth and ensure greater fiscal sustainability.

The creation of a SWF is seen as a key step in enhancing the US’ financial standing, enabling the government to leverage its extensive national assets for greater economic benefit.

President Trump highlighted the potential for such a fund to promote fiscal sustainability, reduce the tax burden on American families and small businesses, and enhance the country’s economic security.

Creation of the SWF aligns with the economic vision

Sovereign wealth funds are established by countries around the world to invest national assets and generate financial returns.

These funds are often used to support long-term goals, including economic security and strategic growth. The US, with its vast holdings of highly valued assets, including $5.7tn in government-controlled assets, stands to benefit significantly from a similar approach.

The country’s indirect asset holdings, including natural resource reserves, further amplify the potential size and impact of the fund.

“The US holds a wealth of resources that can be leveraged to create sustainable wealth for future generations,” President Trump said in a statement.

“A US sovereign wealth fund will provide an opportunity to maximise the financial returns on these assets and support America’s long-term economic goals.”

President Trump’s economic policies, which emphasise fair trade, energy dominance, and regulatory reforms aimed at spurring growth, are expected to further boost the US government’s wealth. These policies, he argued, would provide a robust foundation for the sovereign wealth fund’s success.

A number of countries around the world maintain sovereign wealth funds, with the UK recently announcing plans to establish its fund.

In addition to global examples, the US is not alone in its interest. Twenty-three states within the country already maintain their funds, collectively managing $332bn in assets.

These state-level funds demonstrate the effectiveness of leveraging public assets for long-term wealth generation, underscoring the potential for a national fund on a much larger scale.

“The creation of a US SWF will help ensure that America remains a global leader in economic strength and strategic influence,” President Trump added. “This is a critical step in securing long-term growth and stability for the American people.”

Next steps for fund development

Under the executive order, the Treasury and Commerce Departments are tasked with delivering a full plan for the sovereign wealth fund within 90 days.

The plan will also involve collaboration with the director of the Office of Management and Budget and the assistant to the President for Economic Policy, who will work together to outline the details of the fund’s structure, funding mechanisms, investment strategies, and governance model.

This plan will detail funding mechanisms, investment strategies, and the governance framework for the fund, setting the stage for the US to capitalise on its wealth in a way that aligns with the nation’s long-term economic and strategic interests.

With support for fiscal sustainability and national endeavours, the sovereign wealth fund is positioned as a key tool in advancing Trump’s vision for a stronger, more resilient US economy.

Read: Saudi Arabia, UAE seen as ‘possible venues’ for Trump-Putin summit

Saudi Arabia and the United Arab Emirates are seen by Russia as possible venues for a summit between US President Donald Trump and Russian President Vladimir Putin, two Russian sources with knowledge of the discussions told Reuters.

Trump has said he will end the war in Ukraine as soon as possible and said he is ready to meet with Putin. Putin congratulated Trump on his election and stated he is ready to meet Trump to discuss Ukraine and energy.

Russian officials have repeatedly denied any direct contacts with the US about preparations for a phone call between Trump and Putin, which would precede an eventual meeting later this year.

However, senior Russian officials have visited both Saudi Arabia and the UAE in recent weeks, according to the Russian sources, who spoke on condition of anonymity due to the sensitivity of the situation.

One source said there was still some opposition to the idea in Russia as some diplomats and intelligence officials were pointing to the close military and security links that both the Kingdom and the UAE have with the United States.

Saudi Arabia and the UAE did not respond to requests for comment. The Kremlin declined comment. But both Trump and Putin have developed friendly relations with rulers of Saudi Arabia and the UAE.

Trump said on Sunday that his administration had “meetings and talks scheduled with various parties, including Ukraine and Russia.” When asked about those remarks, Kremlin spokesman Dmitry Peskov said that contacts were ‘apparently planned’.

Saudi Crown Prince Mohammed bin Salman was the first foreign head of state Trump called after taking office. He described the Crown Prince as “a fantastic guy” during his speech via video link to an audience at the World Economic Forum in Davos.

Putin, who visited Saudi Arabia and the UAE in 2023, said last September that he was grateful to Mohammed bin Salman for helping to organise the biggest US-Russian prisoner swap since the Cold War.

Putin and Mohammed bin Salman, also known as MbS, have fostered a close personal relationship since 2015 when the prince visited Russia for the first time.

Putin and MBS

The relationship has helped the leaders of the world’s two biggest oil exporters conclude and maintain the OPEC+ energy deal. Trump called on Saudi Arabia and OPEC to lower oil prices, a potential bargaining chip for Russia in the talks.

Both Mohammed bin Salman and UAE President Mohammed bin Zayed Al Nahyan have maintained neutrality throughout the Ukraine war, refraining from joining the West in criticising and sanctioning Russia.

Both leaders have also maintained regular contacts with Ukrainian President Volodymyr Zelenskiy.

Mohammed bin Zayed Al Nahyan visited Russia several times during the war, saying during his last visit in October 2024 that he was ready to support efforts to find peace in Ukraine. The UAE also successfully mediated prisoner exchanges.

At the current stage, the Russian sources dismissed Turkey, a NATO member that hosted failed peace talks between Russia and Ukraine in March 2022, as a possible venue.

Saudi’s PIF-backed Umm Al Qura for Development and Construction (Umm Al Qura), the owner, developer, and operator of the Masar Destination project, one of Makkah’s largest redevelopment initiatives, has revealed plans to proceed with an initial public offering (IPO) and list its ordinary shares on Saudi Arabia’s Tadawul Main Market.

The company received approval from the Saudi Capital Market Authority (CMA) on December 24, 2024, to register its share capital and offer 130,786,142 new shares, representing 9.09 per cent of the company’s post-capital increase stake.

The shares will be issued as part of a capital increase, with the IPO expected to raise funds for the continued development of Masar.

The Saudi Exchange also granted conditional approval on December 8, 2024, for the listing of Umm Al Qura’s shares on Tadawul’s Main Market.

Umm Al Qura IPO proceeds to fund development

Umm Al Qura confirmed that the net proceeds from the IPO will be used to cover various costs related to land settlements, infrastructure development, activation of Masar, and other project financing expenditures. Additionally, the funds will support general corporate expenses, including sales, marketing, administrative costs, and operational financing.

Masar is one of the largest redevelopment projects in the region, located on Makkah’s western border, stretching for over 3.5 kilometres.

The project site spans approximately 641,000 square metres and features a total gross floor area (GFA) of 5.7 million square metres.

Upon completion, the development will include a mix of hospitality, residential, and retail spaces aimed at transforming Makkah into a global multi-use destination for both residents and visitors.

Masar will also include a range of additional facilities, such as a hospital, a large mosque at the centre of the site, office spaces, and other complementary services.

Commitment to Vision 2030

Umm Al Qura’s chairman, Abdullah Saleh Kamel, emphasised the significance of the IPO, stating the step marked “a significant milestone as we announce our intention to list on the Saudi Exchange’s Main Market. I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors”.

He added: “Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of Masar, a landmark project in the kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximise shareholder value.”

A $26.6bn development

Upon completion, Masar is set to offer more than 50,000 hospitality and residential units, with the total estimated development value reaching approximately SAR100bn ($26.6bn).

CEO Yasser Abdulaziz Abu Ateek commented: “Umm Al Qura was established to enhance the urban and investment landscape of Makkah through Masar. As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah.”

“Our IPO is a vote of confidence in our track record of growth to date, as well as our commitment to building state-of-the-art urban destinations that create unparalleled experiences,” he added.

For the Saudi listing, Umm Al Qura has appointed Albilad Capital as joint financial advisor, lead manager, bookrunner, and underwriter.

GIB Capital and AlRajhi Capital will serve as joint financial advisors, book runners, and underwriters, while Alinma Invest will also act as a joint book runner and underwriter.

Lazard is advising the company and FGS Global is providing media and communications advisory services.

Read: Saudi Arabia’s PIF completes $4bn bond issuance

Dubai’s real estate market continues to thrive, with off-plan transactions now accounting for 63 per cent of all property sales in 2024, up from 54 per cent in 2023, according to a new report from Engel & Völkers Middle East.

This surge in off-plan activity reflects growing demand for new developments, fuelled by competitive pricing, attractive payment plans and limited supply in the secondary market.

The report highlights a significant rise in total residential sales, which climbed by 40.3 per cent year-on-year to 170,992 units in 2024 — more than five times the number of transactions recorded in 2020.

This surge underscores the strong investor confidence in Dubai’s property market, with apartment sales leading the charge.

Apartment transactions grew by 47.6 per cent compared to the previous year, making up nearly 90 per cent of the overall market expansion.

The popularity of apartments can be attributed to their affordability, strong rental yields, and appeal to end-users and investors.

Palm Jumeirah, Downtown Dubai, and Dubai Marina lead luxury demand

Luxury real estate remains a focal point, with high-net-worth individuals continuing to favour prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina. However, newer developments, including Palm Jebel Ali and The Oasis, are generating fresh interest in off-plan properties, catering to affluent buyers seeking exclusivity and long-term capital appreciation.

In the ultra-luxury segment, properties priced over Dhs10m saw a notable 20.5 per cent increase in sales, further solidifying Dubai’s status as a leading global destination for prime real estate.

“The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors increasingly looking for properties that offer long-term value and flexible financing options,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Developers are responding with innovative projects, while government-led initiatives, such as long-term visas and free zone expansions, further strengthen Dubai’s attractiveness as a real estate investment hub.”

Commercial property market is thriving

Dubai’s commercial real estate market is also experiencing robust growth, buoyed by strong economic fundamentals and an influx of new businesses.

More than 24,000 new business registrations were recorded in the first half of 2024, which has contributed to high occupancy rates in key business districts such as DIFC, Downtown Dubai, and Business Bay, where occupancy levels have reached between 95 per cent and 97 per cent.

This demand has driven double-digit rental growth across the commercial sector. Office rents rose 11 per cent year-on-year, retail rents increased by 9.7 per cent, and warehouse prices surged by 21.1 per cent, reflecting the city’s growing need for high-quality commercial spaces.

The limited supply of Grade A office space has spurred new development activity, including Aldar Properties’ upcoming project on Sheikh Zayed Road, as well as additional commercial launches planned for the remainder of the year.

Promising outlook for 2025

In 2025, the city’s real estate market will remain a key driver of economic growth.

Investor confidence is being propelled by rising property values, the ongoing expansion of the luxury sector, and the continued dominance of off-plan transactions.

Developers are responding to the heightened demand with new projects, while regulatory frameworks, such as long-term visas and other incentives, continue to support long-term investment in the market.

Read: Dubai real estate sector sees transactions hit Dhs761bn in 2024

Modon Holding, the Abu Dhabi-based investment firm, has reached an agreement to acquire Arena Events Group, a leading provider of temporary infrastructure and event solutions.

The deal, which includes the purchase of Theta Bidco, Arena’s parent company, is set to enhance Modon’s portfolio and deepen its presence in the global events sector.

The acquisition is expected to significantly strengthen Modon’s capabilities in delivering large-scale, integrated services for high-profile events.

Arena, which operates in over 10 countries including the US, UK, and Saudi Arabia, has been a key player in some of the world’s largest sporting events, such as the 2024 Paris Olympics, Formula 1 races across multiple cities, and Wimbledon.

Arena is also known for constructing modular structures, including a stadium for the 2024 T20 World Cup in New York.

Arena has built a strong reputation within the industry. The company has longstanding partnerships with organisations such as the PGA of America and LIV Golf, providing infrastructure for major golf tournaments annually.

Strategic expansion for Modon

The acquisition further extends Modon’s strategic push into international markets. Jassem Mohammed Bu Ataba Al Zaabi, chairman of Modon Holding, described the move as a key step in the firm’s long-term growth strategy, particularly in expanding its global footprint. “Arena’s leadership in the events sector, with a focus on large-scale infrastructure and services, positions Modon for continued growth and diversification in global markets,” Al Zaabi said in a statement.

Bill O’Regan, CEO of Modon, echoed the sentiment, noting that the acquisition would add new dimensions to the company’s existing event services.

“Arena brings a wealth of experience and a strong global client base that will enable us to expand into new markets, particularly in North America, where Arena has a significant presence,” O’Regan said.

A major step into North America

The acquisition also marks Modon’s first major foray into North America, where Arena has its largest revenue base and a workforce of more than 1,000 employees. The US is a key growth area for Arena, which has provided infrastructure for several high-profile events, including Formula 1 races in Miami and Austin, as well as major sports and entertainment events across the country.

The global events sector is experiencing a boom, with increasing demand for high-quality infrastructure and hospitality services at live events. The partnership between Modon and Arena is well-positioned to capitalize on this trend, particularly with the anticipated rise in live event attendance over the coming years.

Syed Basar Shueb, CEO of International Holding Company (IHC), which has owned Arena for the past three years, expressed confidence in Modon’s ability to leverage the acquisition’s synergies. “Modon is the ideal partner to take Arena’s capabilities to the next level, particularly in the growing temporary infrastructure and event structure markets,” Shueb said.

The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close by Q1 2025.

In other news, in December 2024, Modon Holding completed the acquisition of 100 per cent of La Zagaleta, the owner of the ultra-luxurious La Zagaleta residential estate in Spain’s Costa del Sol.

The acquisition marks a significant step in Modon Holding’s international expansion strategy, further solidifying its presence in Europe’s competitive luxury real estate market.