This week, NEOM secured $3 billion in export credit financing from Italy’s SACE, its largest united ECA-backed deal, supporting infrastructure and development projects across its mega-city. Alpha Dhabi expanded its luxury hospitality portfolio through a 73.73% stake acquisition in NCTH, adding four high-profile properties, including Cheval Blanc in the Seychelles and the Maldives. Chinese AI startup DeepSeek gained attention for challenging US dominance in AI, with its open-source model DeepSeek R1 rivalling OpenAI’s ChatGPT on key performance metrics. Saudi Arabia’s CMA opened Makkah and Madinah real estate investments to foreigners through listed companies, permitting up to 49% foreign ownership. Lastly, Middle East digital banking continues its rapid growth, with the sector expected to reach $175.7 billion by 2029, driven by neobanks and fintech disruptors.
These were the top stories this week as selected by Finance Middle East editors.
NEOM secures $3 billion ECA financing with Italy’s SACE
NEOM has closed a $3 billion export credit agency (ECA) financing deal with Italy’s SACE, marking its first corporate ECA transaction and the largest united financing guaranteed by SACE. The agreement, structured as a long-term multicurrency facility, involves a syndicate of nine international banks, including HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citi, China Construction Bank, J.P. Morgan, and Bank of America.
The financing will support NEOM’s development across key sectors, including infrastructure, urban development, construction, and transportation (rail, road, and maritime). The partnership also facilitates the engagement of Italian suppliers and small and medium enterprises (SMEs) to contribute to NEOM’s ongoing projects.
Alpha Dhabi acquires majority stake in NCTH, expands luxury hospitality portfolio
Alpha Dhabi Holding has acquired a 73.73% controlling stake in the National Corporation for Tourism and Hotels (NCTH), consolidating its luxury hospitality assets under the NCTH umbrella. The transaction, executed through transferring assets from Alpha Dhabi Hospitality Holding LLC (ADHH) and Murban Energy Limited in exchange for shares, strengthens Alpha Dhabi’s position in the domestic and international luxury hospitality sector.
The deal includes transferring four high-profile properties and expanding NCTH’s portfolio to eight hotels with nearly 1,500 keys. The transferred assets include:
- The St. Regis Saadiyat Island Resort (Abu Dhabi)
- Al Wathba, a Luxury Collection Desert Resort & Spa (Abu Dhabi)
- Cheval Blanc Randheli (Maldives)
- Cheval Blanc Seychelles
What is DeepSeek? The Chinese AI startup challenging US dominance amid Trump’s ambitious AI push
Chinese AI startup DeepSeek has emerged as a key player in the global artificial intelligence race, posing a potential challenge to President Donald Trump’s ambitious plans to solidify the United States’ leadership in AI. Its open-source reasoning model, DeepSeek R1, has been making waves for its cost-effective performance, reportedly matching or surpassing OpenAI’s ChatGPT o1 on key benchmarks while raising broader questions about the US strategy to contain China’s technological advancements.
DeepSeek R1, launched in January 2025, has gained widespread attention for its ability to solve complex reasoning tasks in mathematics and coding. According to MIT Technology Review, the model employs a “chain of thought” approach, processing queries step by step. Researchers, including Dimitris Papailiopoulos from Microsoft’s AI Frontiers lab, have praised its engineering simplicity, which reduces computing time without compromising accuracy.
Saudi Arabia opens Makkah and Madinah real estate investments to foreigners through listed companies
The Saudi Capital Market Authority (CMA) has announced that foreign investors can now invest in Saudi-listed companies that own real estate in Makkah and Madinah. This decision follows the approval of regulatory controls that exempt such companies from the restrictions under the system governing non-Saudis’ ownership and investment in real estate. The change is effective immediately.
Under the new regulations, foreign investors can hold shares or convertible debt instruments in Saudi-listed companies that own real estate in Makkah and Madinah. However, the combined ownership of foreign natural and legal persons in such companies cannot exceed 49% of the total shares. Foreign strategic investors are excluded from this provision and are not permitted to own shares or convertible debt instruments in these companies.
Top trends that will shape the future of finance in the Middle East
At the start of 2025, the pace of digitalisation in Middle East banking shows no signs of slowing. In the UAE, for example, the digital banking sector, which already saw a robust CAGR of 8.7% between 2021 and 2023, is now on track to reach $175.7 billion by 2029 at a CAGR of 4.8%.
For traditional banks, however, this growth opportunity isn’t without its challenges. Neobanks and other challengers, once focused on younger, tech-savvy customers, now appeal to older generations seeking easy-to-use, personalised services. Alongside them, fintech innovators like Wio, Zand, Ruya, Tabby, Sarwa, and plenty more, have come to dominate niche markets.
