Overview:
The UAE private sector non-oil economy expanded in August at its strongest rate since December 2024, according to business survey data released Thursday. Simultaneously, Sukoon Takaful and Ajman Bank signed a strategic partnership agreement to expand Sharia-compliant insurance and financial planning solutions. Dubai real estate transactions exceeded 2.3 billion dirhams, while equity markets recovered modestly on buying activity and reduced bond yields.
Details:
Private sector activity in the UAE accelerated significantly during August, marking a notable turnaround from recent months. The expansion reflected increased demand across diversified economic segments, particularly in real estate, banking, and services. Multiple financial institutions announced new product offerings: Mashreq Bank launched a mortgage cashback promotion providing 5,000 dirhams per qualifying home purchase, while Ajman Chamber of Commerce participated in the AIM investment summit to promote regional investment opportunities.
Dubai real estate markets remained active, with property transactions totaling 2.3 billion dirhams across 830 deals on Thursday alone. The emirate's visa-linked tourism program "Call From Dubai" closed registration after exceeding 90,000 applications, having distributed three times its initial allocation of packages. In the port sector, Khorfakkan Port received MSC Mariella, a 24,000-TEU container vessel, underscoring continued logistics infrastructure expansion.
International crude oil prices hovered near 97 dollars per barrel, supported by geopolitical tensions and supply concerns following renewed U.S. military strikes on Iran. Global markets showed mixed signals: U.S. stock indices recovered partially after three-day losses, Asian equity benchmarks remained volatile, and the Japanese yen held gains following a 0.9 percent advance to 158.88 against the dollar. European wheat prices reached record levels amid ongoing regional supply disruptions.
Outlook:
Investors are monitoring U.S. employment data for signals regarding Federal Reserve interest rate trajectory. Market participants remain alert to Iran-U.S. escalation risks and their potential impact on crude oil supply and shipping routes.