Dubai, 20 November 2024 – As of September 2024, Dubai ranks 16^th in the Global Financial Centers Index (GFCI). Since the establishment of the Dubai International Financial Center (DIFC) in 2004, the UAE has distinguished itself as the Middle East’s leading financial hub, offering a premier platform for financial institutions to thrive.

UAE’s Economic Agenda D33 aims to make Dubai the world’s fastest, safest, and most connected city. Dubai’s ambitious plan to double its GDP and FDI to 32 trillion AED and 650 billion AED by 2033 is supported by substantial investments in innovation and technology, including fintech, artificial intelligence, and blockchain.

How Rising Geopolitical Tensions & the Unwinding Yen Carry Trade Are Impacting UAE Equities & CBUAE Decisions

Dubai, 19 August 2024- After the yen carry trade triggered a spike in the VIX index, global equities, including those in the UAE, rebounded significantly. This recovery came in line with the positive expectations of a 25 basis points rate cut by the Federal Reserve in September.

Recent U.S. inflation data shows a slight uptick in the core Consumer Price Index (CPI) month-over-month from 0.1% to 0.2%, with the overall monthly CPI also increasing from -0.1% to 0.2%. This rise, driven by higher services inflation, suggests a 25-bps rate cut is more likely in September than a 50-bps cut. Meanwhile, the annual CPI decreased from 3% to 2.9%, revisiting 2021 levels. These developments have strengthened expectations for a rate cut by both the Fed and the Central Bank of the UAE (CBUAE).

Dubai, 10 July 2024 – Despite an air of uncertainty stemming from the US Presidential Elections and recent U.S. economic indicators demonstrating a decline in leading economic activity metrics, the UAE economy has been holding up with the latest CPI year-over-year figure decreasing from a six-month high of 3.91% to 3.81% at the second half of the year. Meanwhile, the U.S. CPI year-over-year has fallen from 3.4% to 3.3%.

Expecting a sluggish growth of commodity prices, wages, rents, as well as the increase of the UAE Dirham due to a strong US Dollar that could consequently moderate levels of inflation further, the CBUAE’s June 2024 outlook revised the 2024 inflation forecast down from 2.5% to 2.3%.