💸🌴 UAE Economy to Grow 3.9% in 2024
Hala,
📉 Wells Fargo sacked workers for pretending to work by faking keyboard activity.(1) No word on how they got caught. Offices now need inspections every 3 years. 🕵️♀️ Guess their “typing” didn’t cut it! 😂
amana’s Hot Take:
BOJ Delays Bond-Buying Details
- The Bank of Japan delayed its bond-buying reduction details until July, weakening the yen and postponing rate hike expectations. This move kept the benchmark rate between 0 and 0.1%, causing the yen to slump and 10-year government bond yields to drop.
Central Banks: Divergent Policies
- Global central banks are showing diverging monetary policies: Japan maintains a 0% interest rate with continuous bond-buying, the ECB has reduced its benchmark rate to 4.25%, and the Bank of Canada cut its reference rate to 4.75%. The Fed remains restrictive, with hawkish statements and minimal rate cut expectations.
Michigan Consumer Sentiment Index
- The Michigan Consumer Sentiment Index measures U.S. consumer sentiment on personal finances and economic conditions. A high reading boosts the USD, while a low reading weakens it. Today’s release at 6pm Dubai Time is expected to improve to 72 points from 69.1, potentially reinforcing expectations for a single rate cut in 2024.
Stock Market Update
📈📉 US stocks had a thrilling ride again on Thursday. The S&P 500 added 0.23% to 5,433.74 — another record close amid easing inflation pressures.(2) Meanwhile, the Nasdaq 100 rose 0.6% to a new high of 19,576, fueled by tech stocks, while the Dow dipped 0.17% to 38,647.10.(3) It’s like a wild theme park on Wall Street! 🎢 🛼
⬇️⏬ Closer to home, Mideast stocks edged lower as investors juggled cooling US inflation against the Fed’s hawkish stance. Abu Dhabi fell 0.4%, while Dubai dipped 0.3%.(4) 📉↘️
🌴💸 UAE’s Economic Palm Tree Flourishes!
The UAE’s economy is sprouting like a palm tree in an oasis, with projections for 2024 showing a 3.9% growth, according to the central bank.(5) Despite a slight dip in oil activity last year, the non-oil sectors have surged ahead, turning the desert sands into fertile ground for economic prosperity. The UAE Central Bank’s latest report paints a picture of resilience and recovery, setting the stage for a fruitful year ahead.
🌟🌱 Key Economic Figures:
- Overall Growth: 3.6% in 2023, climbing to 3.9% in 2024.
- Q4 Surge: A robust 4.3% year-on-year growth.
- Non-Oil Sector: Outpaced overall GDP, driving the economy forward.
- Oil Activity: Declined due to lower production and prices.
🌟📈 Dubai’s IPO Oasis Booms
Meanwhile, Dubai’s capital market scene is in full bloom, with an IPO boom transforming the city into a hub of financial activity, according to Arif Amiri, CEO of DIFC Authority. The Regional Outlook for Banking and Capital Markets 2024 report highlights a three-phase growth trajectory, underscoring Dubai’s status as a magnet for capital.6) The phases are Phase 1: State-related entity privatisations; Phase 2: Family-owned company listings; and Phase 3: FinTech and tech-enabled startup listings. From state privatisations to tech-enabled startups, the IPO wave is driving financial services to new heights. #GoDubai!
Closer to Home
- 🤝 Abu Dhabi is courting top UK hedge funds, Marshall Wace, and Capula Investment, with a combined $95B in assets under management, aiming to establish offices in the Emirate and boost its financial market.(7) #GoAbuDhabi! 🤞
- 🏢 Kamco Invest announced 6.2% YoY earnings boost to $3.6B for Qatari companies in Q1 2024, up from $3.4B in Q1 2023, fueled by banking, capital goods, and energy sector growth.(8) Qatar’s financial mojo is on point! 🤑
- 💸 Meanwhile, Saudi-based petrochemical company SIPCHEM is spreading joy with its announcement to pay SAR 0.50 ($0.13) cash dividend per share for the first half of the year!(9) 💰
What Else Is Trending
- 🚀 Adobe shares jumped 17% on Thursday after the company dazzled with earnings and revenue results that surpassed expectations, all while boosting its full-year guidance.(10) 🤯
- 🛢️ Meanwhile, oil prices got a modest boost on Thursday from OPEC’s forecast, foreseeing demand hitting 116 million barrels/day by 2045. Both Brent and WTI gained 0.2%, settling at $82.75 and $78.62 a barrel, respectively.(11) ⛽
- 🪙 Lastly, gold prices dipped slightly following weaker-than-expected US producer prices data. Spot gold was down 0.2%, shimmering at $2,318.47 per ounce.(12) ✨
💬 Quote of the Day
“Dubai’s IPO boom underscores the city’s status as a thriving hub for capital markets.” — Arif Amiri, CEO of DIFC Authority
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Sources:- (1) BBC, (2)( (10) CNBC, (3) Yahoo! Finance, (4) (5)(6) (7) (8) (9) (12) Zawya, (11) Reuters
