Skift Take
The timing of Abu Dhabi's decision to lower government fees on hotels and their alignment with the emirate’s long-term goals reflect a strategic move to capitalize on the potential of the tourism sector and the opportunities it presents.
Middle East Travel Roundup
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Hotel stays in Abu Dhabi are now set to get cheaper as the Department of Culture and Tourism — Abu Dhabi (DCT — Abu Dhabi) announced the reduction of government fees imposed on hotels within the emirate.
What Are the Changes? The revisions to the government fees include:
Reduction in the tourism fee for guests from 6% to 4%. Municipality fee of AED 15 per room per night will be eliminated Removal of 6% tourism fee and 4% municipality fee that were previously applied to hotel restaurants. However, the municipality fee equivalent to 4% of invoice value issued to customers will remain in place.From When? The adjustment is scheduled to come into effect from September 1.
What Drives This Move? The goal is to further cultivate the emirate as a hub for tourism and culture, all the while providing additional support for its thriving hospitality industry.
GCC Sovereign Wealth Fund Assets Surge to $4 TrillionWhat we came across while reading S&P Global Market Intelligence’s report on sovereign wealth funds in the GCC:
Over the last few years, the assets under management of sovereign wealth funds in the GCC have experienced an average growth rate of 20% to reach a high of around $4 trillion. This is equivalent to around 37% of the total assets under management of sovereign wealth funds globally, according to statistics provided by Global Sovereign Wealth Funds (SWF). This size is almost equivalent to the combined assets under management of sovereign wealth funds in Asia, Latin America, and Sub-Saharan Africa. In 2022, state-owned investors (including SWFs and public pension funds) from the GCC region invested approximately $83 billion in new funds. Out of the 10 biggest global investments made by these state-owned investors in 2022, five originated from GCC sovereign investors, worth approximately $74 billion. These were divided into 62% from the UAE, 28% from Saudi Arabia, and 10% from Qatar. Among the 10 largest SWFs around the world, five are in the GCC region. Saudi Arabia’s PIF, the Abu Dhabi Investment Authority, the Kuwait Investment Authority, the Qatar Investment Authority, and Investment Corporation of Dubai hold combined assets under management estimated at US$3.3 trillion, according to Global SWF. Green investments and net zero carbon emission targets have also been on the radar screens of