Gulf

1. UAE’s Budapest setback
2. Trump sets trip conditions
3. Oil cuts crimp growth
4. Saudi’s golden handshake
5. UK wealth exodus

Saudi MMA.

Budapest pushback on ‘Mini Dubai’

A battle is brewing in Hungary over plans to transform part of the capital Budapest into a “Mini Dubai.” Abu Dhabi-based Eagle Hills Properties, led by Mohamed Alabbar — the Dubai billionaire behind Emaar Properties and the Burj Khalifa — purchased a 210-acre plot for $128 million. Its €5 billion ($5.2 billion) project aims to revamp a neighborhood near a rundown rail station, featuring towers that could surpass the height of the Empire State Building and potentially become the European Union’s tallest structures. Alabbar, a key figure in the UAE’s global real estate expansion, recently partnered with Jared Kushner’s Affinity Partners on a luxury project in Belgrade.

But the city of Budapest is pushing back. Officials plan to invoke a preemptive right to acquire the land, arguing its value exceeds the developer’s purchase price, Bloomberg reported. The mayor has called on Prime Minister Viktor Orbán to prioritize affordable housing over luxury skyscrapers.

Trump will visit Saudi for $500B

US President Donald Trump, signing a stack of executive orders, outlined conditions for prioritizing Saudi Arabia in his foreign outreach. He decided to make Saudi Arabia his first visit in his first term “because they agreed to buy $450 billion worth of our product,” Trump said. “If Saudi Arabia wanted to buy another $450 or $500 billion — we will up it for all the inflation — I think I would probably go there.” He also said he was confident that Riyadh would eventually normalize ties with Israel and join the Abraham Accords.

Trump’s 2017 visit to Saudi Arabia was groundbreaking, marking the first time a US president chose a Middle Eastern country for their inaugural foreign trip. Gulf leaders convened at the summit, which focused on counterterrorism, economic cooperation, and countering Iran’s regional influence.

Saudi slowdown amid oil cuts

The International Monetary Fund lowered its 2025 growth forecast for Saudi Arabia, continuing a pattern of downward revisions from last year driven by the unexpected extension of OPEC+ production cuts. The kingdom’s economy is now projected to grow by 3.3% this year, following a sharp downgrade in 2024 growth expectations to 1.4%. The Gulf is also feeling the impact of the reduced oil output, with the World Bank cutting its 2025 growth outlook for the bloc to 3.3%. Despite the slowdown in the oil sector, the rest of the kingdom’s economy has momentum: Riyad Bank projects non-oil GDP growth of over 4% for both 2024 and 2025, fueled by diversification efforts and increased investments in giga-projects such as NEOM and the Red Sea developments.

The $3.4 billion ‘golden handshake’

Saudi Arabia wants to get rid of unproductive government workers, and is offering 12.7 billion riyals ($3.4 billion) in cash incentives to encourage resignations. The kingdom’s three-year “Golden Handshake” program — which ultimately aims to make way for government workers with skills suited for digital transformation — will reduce the financial burden of civil servant wages, which account for 44% of the 2025 budget. Riyadh also wants to shift more citizens into private sector roles, where 2.8 million Saudis are currently employed, and to support the kingdom’s target of reducing unemployment to 5% from 7.5%. While the government has not disclosed exact severance details, Asharq Al-Awsat reported that payouts could range from 24 to 60 months of salary.

UAE lures UK millionaires

The estimated number of millionaires that left Britain last year for the UAE, making it a top destination for high-net-worth individuals fleeing the UK’s new tax rules. Starting in April, the UK government will apply inheritance tax to the overseas assets of non-domiciled (non-doms) residents, prompting a wave of relocations. While the European Union attracted the highest number of UK millionaires — with around 6,500 moving to its member states — the UAE continues to stand out as the world’s leading magnet for wealth migration. For the third consecutive year, Henley & Partners ranked the emirates as the top choice for the ultra-rich, drawn by low taxes and luxury lifestyles.

Real estate

• Saudi Prince Alwaleed bin Talal’s Kingdom Holding has resumed work on the Jeddah Tower, set to become the world’s tallest building upon its completion in 2028. The 1,000-meter skyscraper, with an estimated cost of up to $26 billion, is expected to accommodate as many as 100,000 residents. — Zawya

Diplomacy

• Two US citizens were released by the Taliban in return for an Afghan citizen serving a life sentence in a California prison. Qatar mediated the exchange, and all the three released people will travel through Doha. — Al Jazeera

Digital transformation

• The Abu Dhabi government plans to spend 13 billion dirhams ($3.5 billion) to become a global leader in “AI-driven government” services. The program will overhaul the emirate’s digital infrastructure to streamline processes and improve productivity. — Emirates News Agency

Saudi Arabia is becoming a regional force in a sport it has only recently imported: mixed martial arts. The US-based Professional Fighters League (PFL), backed by a $100 million Public Investment Fund stake, is now exploring partnerships in Dubai and Doha. Its Middle East and North Africa league, launched in 2024, has plans to host its first Egyptian event next year. While the regional league effort isn’t profitable, the investment is part of a broader Saudi push into sports to attract tourists and diversify its economy.

Slightly more US adults reported being satisfied with the nation’s democracy last year, driven by an increase in satisfaction among Republicans likely reacting to Trump’s electoral victory, according to new Gallup polling.

Currently, both parties as well as independents express similar amounts of satisfaction in democracy, which is unusual — typically, backers of the current president’s party report being more satisfied, Semafor’s Morgan Chalfant reports.