CGI Gulf Insights of the week ) (copy 125) (532)

ByCGI Gulf Insights of the week
Monday, 27 March 2023
Published inMarch 2023

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March 2023

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Issue No:360

Country Risk Update - United Arab Emirates

Risk Indicator - DB3b
Risk Level - Slight
Ratings Trend - Stable

Regional cooperation between Israel and the UAE is increasing to counter the shared threat of a nuclear Iran, though some actions of Israel’s ultra-right government may complicate the scenario. As the UAE and Israel draw closer, they should be wary of the ultra-right leaning of Netanyahu government. GDP grew 10.5% y/y in the first nine months of 2022, the fastest expansion in the Middle East and North Africa (MENA), driven by strong growth in the non-oil sector; our forecast for 2022 GDP is 7.8%. Non-oil foreign trade reached a record USD607.1bn in 2022, a consequence of the UAE‘s efforts to diversify its revenue base and forge trade partnerships globally. The German power company RWE has received its first shipment of liquefied natural gas (LNG) from the UAE, making it the 'first-ever LNG cargo to be shipped to Germany from the Middle East'.

MARKET OVERVIEW

Sheikh Zayed Housing Programme approves Dh299m in assistance for Emiratis

(Source: The National News)

The Sheikh Zayed Housing Programme has approved Dh298.7 million in housing aid to support Emiratis. “As we welcome the holy month of Ramadan, the month of giving, Sheikh Zayed Housing Programme continues its endeavours to enhance family stability, ensure decent living, and improve the quality of life of UAE citizens,” said Suhail Al Mazrouei, Minister of Energy and Infrastructure. The funding includes applications for house construction, completion, purchase, maintenance and upgrades and is part of President Sheikh Mohamed's decision in June last year that all pending applications received by the programme are completed at a cost of Dh2.3 billion. It was announced at the time that all pending applications for funding assistance would be processed over the next five years........

CBUAE unveils Central Bank Digital Currency strategy

(Source: Gulf Business)

Four The Central Bank of UAE (CBUAE) has partnered with G42 Cloud and R3 to launch its Central Bank Digital Currency (CBDC) strategy, one of the nine initiatives of the central bank’s Financial Infrastructure Transformation (FIT) Programme, according to WAM. The UAE central bank said G42 Cloud and R3 are the infrastructure and technology providers, respectively. “CBDC is one of the initiatives as part of the CBUAE’s FIT programme, which will further position and solidify the UAE as a leading global financial hub. The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country,” said........

Saudi Arabia to host next summit in May, Arab League says

(Source: The National News)

Saudi Arabia has agreed to host the next Arab League summit in May, the Cairo-based bloc announced on Sunday night. Hossam Zaki, the league's assistant secretary general, said the decision was made after consultations between the league's chief Ahmed Aboul Gheit and the Saudi government. The summit will be held on May 19, Mr Zaki said. "The government of the Kingdom of Saudi Arabia has stated its welcome for hosting the summit on the aforementioned date," a League statement said. The last Arab League summit was held in Algiers in November last year. The return of Syria to the Arab League a decade after its membership was suspended would probably be high on the agenda of the summit......

Gulf central banks raise interest rate based on US Federal Reserve hike

(source: Gulf Business)

The central banks of the UAE, Saudi Arabia, Bahrain and Qatar hiked their benchmark borrowing rates after the US Federal Reserve raised its key interest rate by 25 basis points (bps) on March 22. US stocks retreated from near two-week highs on Wednesday after the Federal Reserve raised borrowing costs. The US Fed signalled that it might be on the verge of pausing future interest rate hikes amid recent turmoil in financial markets, reported the state news agency WAM. The Central Bank of the UAE (CBUAE) raised the base rate applicable to the Overnight Deposit Facility (ODF) by 25 bps – from 4.65 per cent to 4.90 per cent, effective from Thursday......

COMMODITY & STOCK MARKET UPDATE

Commodity Update

(source: Nasdaq)

The weekly commodity update from Nasdaq

Stock Market Update

(source: Mubasher)

The weekly stock market update from Mubasher

CRIF D&B WORLD

See the complete picture of a business family tree

(Source: CRIF - Dun & Bradstreet)

D&B Onboard gives you a corporate linkage to see the complete picture of a business’s family tree. Corporate regulatory compliance are made easier........