S&P projects UAE's GDP to grow over 5% in 2024
The UAE’s GDP is expected to expand by over 5 percent in 2024, exceeding the 2.8 percent growth expected for the global economy, according to Standard & Poor's (S&P) Global Ratings projections.
Tatiana Leskova, Associate Director of Corporate Ratings at S&P Global Ratings, told the Emirates News Agency (WAM) that “while the global economy remained subdued operating at subpar growth levels, we estimate that UAE GDP expanded at over 3 percent in 2023, including close to 6 percent growth for the non-oil sector”.
“In Dubai, we expect continued strong momentum in the hospitality, wholesale and retail, and financial services sectors to drive growth in 2024-2025,” she explained.
Asked about the performance of the UAE's real estate sector in the face of global economic changes, Leskova said, “So far, the UAE and Dubai more specifically have remained relatively immune to the global economic headwinds, thanks to the limited sensitivity to interest rates and contained inflation. Despite higher interest rates, the number of mortgage transactions continued to grow in Dubai, where over 80 percent of real estate transactions are completed on a cash basis. In contrast, the European real estate market has been marked by weakened purchasing power since 2022 due to high interest rates and relatively higher inflation. The China market also remains challenging for its leveraged developers, with margins tightening as prices drop, pressuring profitability. The picture has become a little brighter in the U.S., where demand picked up at the start of 2023 after a slowdown.”
“The profile of buyers evolved slightly since 2022, with a sharp increase in Russian buyers becoming one of the largest investor groups in Dubai,” she went on to explain, “We expect this to be temporary, with Indians, Europeans and GCC buyers remaining the largest investors as per the historic trend. Dubai still remains far more attractive as an investment opportunity than other emirates despite news of gaming hotels in RAK, and general economic growth in the country overall.”
Monday, 15 January 2024
Stock markets in the Gulf end mixed ahead of earnings season | Reuters
Stock markets in the Gulf end mixed ahead of earnings season | Reuters
Stock markets in the Gulf ended mixed on Monday ahead of the usual flurry of quarterly and full-year corporate results, with the Saudi index snapping a five-session losing streak.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Elm Co (7203.SE) gaining 1.6% and Al Rajhi Bank (1120.SE) climbing 1.9%.
The kingdom's annual inflation rate eased to 1.5% in December, from 1.7% the previous month, government data showed on Monday, driven by housing rent increases.
Inflation remained relatively low in Saudi Arabia last year compared to global levels, with government policies limiting the impact of international price increases.
However, oil giant Saudi Aramco (2222.SE) slipped 1.4%.
Oil prices - which fuel the Gulf's economy - dipped as the Middle East conflict's limited impact on crude output prompted profit taking after oil benchmarks gained 2% last week.
Several tanker owners steered clear of the Red Sea and multiple tankers changed course on Friday after U.S. and Britain launched strikes against Houthi targets in Yemen after the Iran-backed group's attacks on shipping in response to Israel's war against Hamas in Gaza.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% fall blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.1%.
On Sunday the Houthi militia threatened a "strong and effective response" after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Yemen.
The Qatari benchmark (.QSI) gained 0.2%, with Islamic bank Masraf Al Rayan (MARK.QA) advancing 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.1%, led by a 1.9% gain in Commercial International Bank (COMI.CA).
Stock markets in the Gulf ended mixed on Monday ahead of the usual flurry of quarterly and full-year corporate results, with the Saudi index snapping a five-session losing streak.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Elm Co (7203.SE) gaining 1.6% and Al Rajhi Bank (1120.SE) climbing 1.9%.
The kingdom's annual inflation rate eased to 1.5% in December, from 1.7% the previous month, government data showed on Monday, driven by housing rent increases.
Inflation remained relatively low in Saudi Arabia last year compared to global levels, with government policies limiting the impact of international price increases.
However, oil giant Saudi Aramco (2222.SE) slipped 1.4%.
Oil prices - which fuel the Gulf's economy - dipped as the Middle East conflict's limited impact on crude output prompted profit taking after oil benchmarks gained 2% last week.
Several tanker owners steered clear of the Red Sea and multiple tankers changed course on Friday after U.S. and Britain launched strikes against Houthi targets in Yemen after the Iran-backed group's attacks on shipping in response to Israel's war against Hamas in Gaza.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1% fall blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.1%.
On Sunday the Houthi militia threatened a "strong and effective response" after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Yemen.
The Qatari benchmark (.QSI) gained 0.2%, with Islamic bank Masraf Al Rayan (MARK.QA) advancing 2.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.1%, led by a 1.9% gain in Commercial International Bank (COMI.CA).
Fund manager Rajiv Jain takes $2.8bn bet on Middle Eastern stocks
Fund manager Rajiv Jain takes $2.8bn bet on Middle Eastern stocks
Fund manager GQG has amassed a $2.8bn holding in companies in the Middle East and expects to raise this further, while it has cut its position in China to around half that level.
Fund manager GQG has amassed a $2.8bn holding in companies in the Middle East and expects to raise this further, while it has cut its position in China to around half that level.
The Florida-based asset manager founded by Rajiv Jain, previously a star fund manager at Vontobel Asset Management, has built up the bet over the past 18 months, spurred on by the “business friendly” approaches of governments in the region and their plans to diversify away from a reliance on oil.
“There are massive privatisation hopes which by definition will open up the economy,” said Jain, whose firm manages $105bn in assets and is well known for a large contrarian bet it took last year on Indian conglomerate Adani. “There’s a real intention to open up and transition away from oil.”
Jain’s investments in the region include a $1bn stake in IHC, the $246bn UAE-listed conglomerate, which he described as a good means of gaining exposure to the strong growth in the region. Last year the Financial Times reported that the company’s highly concentrated ownership made it hard to buy the shares. Jain said the free float provided plenty of liquidity.
GQG’s new interest in the Middle East means its funds now have more money invested there than in China, the world’s largest emerging market. That marks a major change of position from five years ago, when the world’s second-largest economy accounted for 40 per cent of the firm’s emerging markets portfolio.
#Dubai Real Estate: Sales of $25 Million Homes Double as Global Elite Move In - Bloomberg
Dubai Real Estate: Sales of $25 Million Homes Double as Global Elite Move In - Bloomberg
Sales of homes worth $25 million or more doubled in Dubai last year after some of the world’s wealthiest people snapped up homes in the Middle East’s business and tourism hub, according to property consultant Knight Frank LLP.
A total of 56 ultra-luxury homes worth $2.27 billion were sold in the city in 2023, up from 28 properties worth $1.24 billion a year earlier. Most of those properties, 22, were on Dubai’s man-made palm-shaped Palm Jumeirah island and 15 were on the seahorse-shaped Jumeirah Bay island.
Demand for Dubai property is booming as the government’s handling of the pandemic and its liberal visa policies attract more foreigners. The luxury end of the market is also benefiting from an influx of investors such as Russians seeking to shield their assets, crypto millionaires, and rich Indians setting up second homes.
“The global super rich continue zero in on Dubai, with the city’s lifestyle and relatively affordable luxury homes being the top pull factors,” said Faisal Durrani, head of Middle East research at Knight Frank. “There is also an element of a pooling of global wealth in Dubai, which is helping push the emirate to a state of critical mass, which itself has become a new magnet for the global elite.”
Buyers from new locations such as Monaco are now “joining the capital train to Dubai, alongside a rising tide of interest from China,” Durrani said.
The most expensive transaction in 2023 was for a five-bedroom apartment in the Como Residences development, a yet-to-be built tower on the trunk of Palm Jumeirah. The 21,949 square-foot (2,039 square-meter) apartment was sold for $136.2 million, according to Knight Frank.
The ultra-luxury sector is a relatively new phenomenon in Dubai. Before 2021, a maximum of four homes worth $25 million or more were sold in any given year. Developers are now expanding their portfolio, but the availability of supply in the most desirable locations could become more constrained, Durrani said.
Sales of homes worth $25 million or more doubled in Dubai last year after some of the world’s wealthiest people snapped up homes in the Middle East’s business and tourism hub, according to property consultant Knight Frank LLP.
A total of 56 ultra-luxury homes worth $2.27 billion were sold in the city in 2023, up from 28 properties worth $1.24 billion a year earlier. Most of those properties, 22, were on Dubai’s man-made palm-shaped Palm Jumeirah island and 15 were on the seahorse-shaped Jumeirah Bay island.
Demand for Dubai property is booming as the government’s handling of the pandemic and its liberal visa policies attract more foreigners. The luxury end of the market is also benefiting from an influx of investors such as Russians seeking to shield their assets, crypto millionaires, and rich Indians setting up second homes.
“The global super rich continue zero in on Dubai, with the city’s lifestyle and relatively affordable luxury homes being the top pull factors,” said Faisal Durrani, head of Middle East research at Knight Frank. “There is also an element of a pooling of global wealth in Dubai, which is helping push the emirate to a state of critical mass, which itself has become a new magnet for the global elite.”
Buyers from new locations such as Monaco are now “joining the capital train to Dubai, alongside a rising tide of interest from China,” Durrani said.
The most expensive transaction in 2023 was for a five-bedroom apartment in the Como Residences development, a yet-to-be built tower on the trunk of Palm Jumeirah. The 21,949 square-foot (2,039 square-meter) apartment was sold for $136.2 million, according to Knight Frank.
The ultra-luxury sector is a relatively new phenomenon in Dubai. Before 2021, a maximum of four homes worth $25 million or more were sold in any given year. Developers are now expanding their portfolio, but the availability of supply in the most desirable locations could become more constrained, Durrani said.
Key Gulf markets gain ahead of earnings season | Reuters
Key Gulf markets gain ahead of earnings season | Reuters
Most major stock markets in the Gulf edged higher in early trading on Monday ahead of the usual flurry of quarterly and full-year corporate results, although regional conflict weighed on sentiment.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, on course to snap a five-day losing streak, led by a 3% rise in Elm Co (7203.SE) and a 1.1% increase in auto rental firm Lumi (4262.SE).
The kingdom's annual inflation rate eased to 1.5% in December, from 1.7% the previous month, government data showed on Monday, driven by housing rent increases.
Inflation remained relatively low in Saudi Arabia last year compared to global levels, with government policies limiting the impact of international price increases.
The Qatari index (.QSI) added 0.3%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) rising 1.8%.
Dubai's main share index (.DFMGI) edged 0.1% higher, helped by a 1.2% gain in toll operator Salik (SALIK.DU).
In Abu Dhabi, the index (.FTFAD) fell 0.1%, hit by a 0.8% fall in conglomerate International Holding (IHC.AD).
Oil prices edged up as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.
On Sunday, the Houthi militia threatened a strong response after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Houthi militant areas of Yemen.
Most major stock markets in the Gulf edged higher in early trading on Monday ahead of the usual flurry of quarterly and full-year corporate results, although regional conflict weighed on sentiment.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, on course to snap a five-day losing streak, led by a 3% rise in Elm Co (7203.SE) and a 1.1% increase in auto rental firm Lumi (4262.SE).
The kingdom's annual inflation rate eased to 1.5% in December, from 1.7% the previous month, government data showed on Monday, driven by housing rent increases.
Inflation remained relatively low in Saudi Arabia last year compared to global levels, with government policies limiting the impact of international price increases.
The Qatari index (.QSI) added 0.3%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) rising 1.8%.
Dubai's main share index (.DFMGI) edged 0.1% higher, helped by a 1.2% gain in toll operator Salik (SALIK.DU).
In Abu Dhabi, the index (.FTFAD) fell 0.1%, hit by a 0.8% fall in conglomerate International Holding (IHC.AD).
Oil prices edged up as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.
On Sunday, the Houthi militia threatened a strong response after the United States carried out another strike overnight. The U.S. later said it shot down a missile fired at one of its ships from Houthi militant areas of Yemen.