#Dubai Inflation: Consumer Prices Skyrocket Less Than Year After Steep Deflation - Bloomberg

Dubai Inflation: Consumer Prices Skyrocket Less Than Year After Steep Deflation - Bloomberg

Consumer prices in Dubai are increasing faster than in Singapore and approaching levels seen across much of Europe, capping a sharp reversal after almost three straight years of deep deflation.

Inflation in the Middle East’s business hub reached an annual 7.1% in July, the fastest since Bloomberg began compiling the data in 2016. The higher costs of transportation, recreation and entertainment, and food and beverages were the biggest contributors to the upswing, according to the city’s statistics authority.

The pick-up in Dubai, where inflation was negative as recently as in October, shows the oil-rich Gulf region is no longer immune to cost pressures plaguing much of the world economy. Local governments in countries like the United Arab Emirates, of which Dubai is a part, already set aside billions of dollars to support low-income citizens and stockpile key commodities.

While in part a reflection of a global rally in commodity prices, the outlook for prices in Dubai is also shifting as companies end a stretch of discounting and begin to pass on costs to consumers.

Oil prices retrace losses but head for weekly dip | Reuters

Oil prices retrace losses but head for weekly dip | Reuters

Oil prices were broadly stable on Friday, retracing earlier losses, but were headed for weekly losses as concerns about a global economic slowdown weighed amid soaring inflation rates.

Brent crude futures were down 13 cents, or 0.1%, at $96.46 a barrel at 1339 GMT. U.S. West Texas Intermediate crude was at $90.78 a barrel, up 28 cents, or 0.3%.

Both benchmark contracts were headed for weekly losses of around 1.5%.

Giving a floor to prices on Friday, U.S. crude inventories fell sharply as the nation exported a record 5 million barrels of oil a day in the most recent week, with oil companies finding demand from European nations looking to replace Russian crude.

Haitham Al Ghais, the new secretary general of the Organization of the Petroleum Exporting Countries, told Reuters he was optimistic about oil demand into 2023. read more

#UAE bourses in red on weak oil, growth worries | Reuters

UAE bourses in red on weak oil, growth worries | Reuters

Dubai's main share index led stock markets in the United Arab Emirates lower on Friday, as oil prices fell on concerns about a global economic slowdown.

Crude prices, a key driver of the Gulf's financial markets, slipped after two days of gains and were heading for weekly losses, also under pressure from a strong dollar.

Dubai's main share index (.DFMGI) fell 0.4%, with top lender Emirates NBD (ENBD.DU) down 1.4% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) down 0.7%.

The index still managed to eke out a weekly gain of 0.7%, however.

Abu Dhabi's index (.FTFADGI) ended five weeks of gains with a weekly drop of 1.6%, although it only inched 0.1% lower on Friday.

Telecoms firm e& (ETISALAT.AD), formerly known as Emirates Telecommunications, retreated 1.1%, while a 0.3% rise in conglomerate International Holding Co (IHC) (IHC.AD) helped support the broader index.

Shares of IHC, the most valuable company on the Abu Dhabi bourse with a market capitalisation of around $167 billion, have risen by more than 120% so far this year.

IHC, which straddles sectors from healthcare and real estate to IT and utilities, made 70 acquisitions worth 10 billion dirhams ($2.72 billion) this year.

European, Middle Eastern & African Stocks - Bloomberg #UAE mid-session

European, Middle Eastern & African Stocks - Bloomberg #UAE mid-session

Oil headed for weekly loss as recession fears cloud demand outlook | Reuters

Oil headed for weekly loss as recession fears cloud demand outlook | Reuters

Oil prices slipped on Friday after two days of gains and are heading for weekly losses as a strong dollar and worries about a global economic slowdown weigh.

Brent crude futures were down 97 cents, or 1%, at $95.62 a barrel by 0826 GMT. U.S. West Texas Intermediate crude was at $89.59 a barrel, down 91 cents or 1%.

Both benchmark contracts were headed for weekly losses of close to 3%.

A strong dollar has made oil more expensive for holders of other currencies, while Asian and European equities dropped.

Middle East states set for $1.3tn oil windfall, says IMF | Financial Times

Middle East states set for $1.3tn oil windfall, says IMF | Financial Times

Energy-rich Middle East states are set to reap up to $1.3tn in additional oil revenues over the next four years, according to the IMF, as they enjoy a windfall that will bolster the firepower of the region’s sovereign wealth funds at a time when global asset prices have sold off. 

The IMF’s projections underscore how high energy prices driven by Russia’s war in Ukraine are buoying the Gulf’s absolute monarchies while much of the rest of the world grapples with soaring inflation and fears of recession. 

Jihad Azour, IMF director for the Middle East and north Africa, told the Financial Times that relative to expectations before the war in Ukraine, the region’s oil and gas exporters, particularly Gulf states, “will see additional cumulative oil revenues of $1.3tn through 2026”. 

The Gulf is home to some of the world’s biggest oil and gas exporters, and several of its largest and most active SWFs. These include Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, Abu Dhabi’s stable of vehicles, including the Abu Dhabi Investment Authority, Mubadala and ADQ, and the Kuwait Investment Authority.