#UAE economy to grow 4.9% in 2025 on higher oil output, central bank says | Reuters

UAE economy to grow 4.9% in 2025 on higher oil output, central bank says | Reuters

The United Arab Emirates' economy is expected to grow 4.9% in 2025, up from an earlier forecast of 4.4%, due to higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.

The hydrocarbon sector is expected to grow by 5.8% in 2025, and expand by 6.5% next year, the bank said in a quarterly update, on increased oil production in line with OPEC+ quotas.

"This real adjustment in hydrocarbon output is expected to largely offset the negative impact of the decline in oil prices on government revenues, creating a positive ripple effect on non-hydrocarbon sectors," the report said.

The UAE, a top oil exporter, has accelerated plans to diversify its economy, with the non-hydrocarbon sector accounting for 77.1% of total GDP in the first quarter.

Non-hydrocarbon GDP is expected to grow by 4.5% in 2025 and 4.8% in 2026, the central bank projected, benefiting potentially from the indirect effects of higher hydrocarbon growth, including more investment, government spending and confidence in the economy.

The UAE economy grew 3.9% year-on-year in the first quarter, driven by non-hydrocarbon growth of 5.3%, led by the manufacturing, financial services, construction and real estate sectors.

Ivanhoe Mines in ongoing talks with sovereign funds after #Qatar investment, Friedland says | Reuters

Ivanhoe Mines in ongoing talks with sovereign funds after Qatar investment, Friedland says | Reuters

Ivanhoe Mines (IVN.TO), opens new tab is in constant dialogue with sovereign wealth funds for potential investments aimed at supporting the company's push to boost production of copper and other critical minerals, Co-Chairman Robert Friedland told Reuters on Wednesday.

Vancouver-based Ivanhoe said earlier on Wednesday that Qatar's sovereign wealth fund would invest $500 million as part of what Qatari officials said is a goal of "finding, developing, and sustainably supplying the critical minerals essential to global energy transition and advanced technology applications.”

Ivanhoe has operations in the Democratic Republic of Congo and South Africa, with exploration projects underway in Angola. Friedland, Ivanhoe's third-largest shareholder, cited an interest in growing elsewhere in Africa and parts of Asia.

Friedland said Qatar's investment opens doors, especially in predominantly Islamic countries where he believes there are large, untapped mineral deposits. Roughly 65% of Qatar's population is Muslim and much of the country's wealth comes from natural gas production.

Ivanhoe, which counts two Chinese companies as its largest investors, has been among the more prominent users of advanced imaging, artificial intelligence and other high-tech methods to better find geological deposits.

Asked if Ivanhoe is in talks with other potential investors, Friedland said: "We're in constant dialogue with sovereign partners. They always want more. We have ambitions to grow Ivanhoe Mines into a world-leading mining organization."

Friedland declined to share details, but added that Ivanhoe was not interested in partnering with hedge funds.

"We are kind of allergic to hedge funds named after Greek gods," he said, without naming specific investors. "Their investment horizon is sometimes measured in a millionth of a second."

He characterized the global rush for critical minerals and the potential to find new deposits as similar to the western U.S. mining rush of the late 19th century. "In my 40 years in the industry, I've never seen so much interest in critical raw materials," he said.

Ivanhoe is intrigued about developing titanium projects in Ukraine, he said, but not while the country is in conflict with Russia. The company has no interest in deep-sea mining projects, he added.

Friedland is also the largest investor in Sunrise Energy Metals (SRL.AX), opens new tab, which said on Tuesday it is under consideration for potential funding from the U.S. Export-Import Bank for its Australian scandium project.

#UAE, Hong Kong agree to enhance cross-border fund, investment management | Reuters

UAE, Hong Kong agree to enhance cross-border fund, investment management | Reuters

The UAE and Hong Kong on Thursday signed a regulatory agreement to allow investment funds and asset managers licensed in one market to be recognized in the other, streamlining cross-border access and expanding flows between Asia and the Middle East.

The memorandum of understanding, signed between the UAE's Securities and Commodities Authority and Hong Kong's Securities and Futures Commission, sets out a framework for mutual recognition of funds, easing regulatory duplication and creating a clearer path for firms to operate in both jurisdictions.

The agreement also provides for enhanced cooperation between the two entities, including information exchange, cross-border inspections, and the sharing of supervisory practices.

It is the first such arrangement between Hong Kong and a Middle Eastern financial authority.

"This partnership with Hong Kong marks a transformative milestone in redefining the global investment landscape," said Waleed Al Awadhi, CEO of the SCA.

"We are deeply committed to empowering investors through a resilient investment ecosystem, one that drives innovation, sets new benchmarks in international best practices, and underscores the UAE's strategic leadership as one of the top global financial centers."

The deal comes as both the UAE and Hong Kong seek to deepen international capital market ties amid increased competition among global financial centers.

It also aligns with broader efforts to support sustainable finance and foster regulatory convergence across regions.

Earlier in the day, the Hong Kong bourse operator (0388.HK), opens new tab centered an agreement with the Abu Dhabi Securities Exchange to deepen collaboration and enhance connectivity between their capital markets.

Gulf stocks rise after regional central banks follow US Fed rate cut | Reuters

Gulf stocks rise after regional central banks follow US Fed rate cut | Reuters

Most Gulf equities edged higher on Thursday after regional central banks cut interest rates by 25 basis points, mirroring the U.S. Federal Reserve’s widely expected move to support the labor market.

The Fed also signalled a measured path for further easing, leaving investors uncertain about the pace of future cuts.

Saudi Arabia's benchmark stock index (.TASI), opens new tab rose 1.2% for a third straight session after the Saudi Central Bank matched the Fed with a 25-basis-point cut.

Utilities and IT stocks led gains. Arabian Internet and Communications Services (7202.SE), opens new tab jumped 5.4%, extending the prior session’s advance after it signed a digital infrastructure framework agreement with Saudi Aramco(2222.SE), opens new tab, which added 1.5%.

MBC Group (4072.SE), opens new tab surged 10% after its unit Istedamah Holding sold its entire stake in MBC to the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.

Saudi equities may extend their rebound on private sector strength, but oil price volatility remains a key risk to sustained gains, said Ahmed Negm, Head of Market Research MENA at XS.com.

In the UAE, Abu Dhabi’s index (.FTFADGI), opens new tab rose 0.6%, lifted by consumer staples and energy.

ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbed 4.4% in active trade, while ADNOC Distribution (ADNOCDIST.AD), opens new tab and ADNOC Logistics (ADNOCLS.AD), opens new tab gained 1.3% and 2.5%, respectively.

ADNOC’s international investment arm, ADNOC XRG, and its consortium partners withdrew a non-binding $18.7 billion bid for Australian gas producer Santos (STO.AX), opens new tab, ending a takeover saga that lasted months.

Elsewhere, newly listed Orascom Construction surged nearly 12% after three consecutive sessions of losses.

In contrast to its regional peers, Dubai's main share index (.DFMGI), opens new tab gave up early gains to finish 0.2% lower, marking three straight sessions of losses, hit by a broad-based sectoral decline.

Commercial Bank of Dubai (CBD.DU), opens new tab fell 3.7%, and Dubai Electricity and Water Authority (DEWAA.DU), opens new tab shed 0.7%.

Real estate outperformed, with Emaar Properties (EMAR.DU), opens new tab rising more than 1% after the developer dropped plans to sell a stake in its Indian entity and was considering a joint venture with larger firms, including Adani Group (ADEL.NS), opens new tab.

Separately, the UAE's economy is projected to grow 4.9% in 2025, up from prior forecast of 4.4%, on higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.

Qatar's benchmark (.QSI), opens new tab added 0.7%, consolidating two days of gains on financials-led buying. Qatar National Bank (QNBK.QA), opens new tab and Qatar Islamic Bank (QISB.QA), opens new tab rose 1.4% and 1.7%, respectively.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 1.2%, lifted by a 7.4% jump in Eastern Company (EAST.CA), opens new tab.

Gulf central banks cut key interest rates following Fed move | Reuters

Gulf central banks cut key interest rates following Fed move | Reuters

Gulf central banks cut their key interest rates on Wednesday after the Federal Reserve cut U.S. interest rates by 25 basis points for the first time this year.

The Fed cut its rate by a quarter of a percentage point, in a move that won support from most of President Donald Trump's central bank appointees.

The Gulf's oil and gas exporters generally follow the Fed's lead on rate moves as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the U.S. dollar.

While most regional economies have been largely shielded from stubbornly high inflation elsewhere, all have implemented ambitious economic diversification plans to boost non-oil growth and develop sectors such as real estate, tourism and manufacturing, which require billions in financing and investment.

Saudi Arabia, the region's biggest economy, cut its repurchase agreement (repo) rate by 25 bps to 4.75% and its reverse repo rate also by 25 bps to 4.25%.

The United Arab Emirates' central bank also reduced the base rate applied to its overnight deposit facility by 25 bps to 4.15%, from 4.40%, effective Thursday.

"The immediate impact (of a Fed cut) would be lower borrowing costs across public and private sectors, easing pressure on governments, firms, and households and supporting broader fiscal stimulus and investment," said Hamza Dweik, Saxo Bank's head of trading for Middle East and North Africa.

"A softer dollar, often associated with Fed easing, could support oil prices, benefiting GCC exporters. Nevertheless, energy-market volatility remains a key risk, given evolving global demand dynamics," Dweik said.

Qatar's central bank reduced its deposit rate by 25 bps to 4.35%, its lending rate by 25 bps to 4.85% and its repo rate by 25 bps to 4.60%.

Bahrain's central bank also cut its overnight deposit rate by 25 bps to 4.75% from 5%, effective Thursday.

Kuwait cut its discount rate by 25 basis points to 3.75% from 4%.

The Central Bank of Oman cut its repo rate by 25 basis points to 4.75%.

A Reuters poll in July showed ramped-up oil production and diversification efforts will help most Gulf economies grow faster this year than they did in 2024.