UAE Central Bank maintain benchmark interest rate
In a statement, the Central Bank said it was maintaining its Overnight Deposit Facility at 4.4 per cent. The decision was taken after the US Federal Reserve maintained its benchmark rate at 4.25-4.5 per cent.
The UAE follows US monetary policy as the dirham is pegged to the US dollar.
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Zawya
4 minutes ago
- Zawya
Abu Dhabi's non-oil foreign trade grew 34.7% in H1 2025
ABU DHABI: The Abu Dhabi's non-oil foreign trade continued its growth trajectory, recording a strong performance during the first half of current year (From January to June 2025), soaring 34.7% to AED195.4 billion compared to AED145 billion during the corresponding period in 2024, according to statistics released Today by Abu Dhabi Customs. This growth reflects the resilience and dynamism of Abu Dhabi's economy, supported by the efficiency of its infrastructure and the advancement of logistics services, which have helped facilitate trade flows and enhance the smooth movement of goods through border crossings. During the first six months of 2025, the Abu Dhabi's non-oil exports grew by 64%, reaching AED78.5 billion, up from AED47.9 billion in H1-2024. Imports rose by 15% to AED80 billion, compared to AED70 billion. Meanwhile, re-exports registered a 35% increase, surpassing AED36 billion, compared to AED26.6 billion in the first half of 2024. The increase in non-oil foreign trade volume underscores the strength of Abu Dhabi's economic diversification strategies, forward-looking policies, and significant investments across key sectors. These efforts collectively support the emirate's drive to strengthen its position as a leading regional and global trade and logistics hub. Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, 'Abu Dhabi's non-oil foreign trade steady performance in H1- 2025 reaffirms our position as a global economic powerhouse, bridging East and West, North and South. Our consistent growth, amid the challenges in the international trade and global economy, reflects the strengths of our long-term economic planning, decisive policy execution, and our commitment to enabling fair and free exchange of goods, services, and innovations'. Al Zaabi added, 'We are doubling down our efforts to position Abu Dhabi among the world's most business-ready economies by streamlining trade procedures, deploying smart systems, and integrating services to enhance flow and accelerate efficiency, cementing Abu Dhabi's position as global trade and investment centre and a key node on international supply chains." Rashed Lahej Al Mansoori, Director-General of Abu Dhabi Customs, said, 'The growth in non-oil foreign trade during the first half of 2025 reflects the success of Abu Dhabi's economic strategies, and highlights the effectiveness of efforts made by Abu Dhabi Customs, in collaboration with strategic partners, to facilitate trade. These efforts are driven by the adoption of advanced systems, innovations, and digital technologies." He emphasised the continued commitment to developing a proactive and agile customs ecosystem that supports global supply chains and enhances the emirate's competitiveness as a regional and international hub for trade and business. 'Abu Dhabi Customs remains dedicated to delivering best-in-class services and procedures that accelerate customs clearance and promote integration with both local and international partners, thereby supporting sustainable growth, enabling the future economy, and reinforcing Abu Dhabi's position on the global trade map,' Al Mansoori concluded.
The National
34 minutes ago
- The National
EU-US deal won't really happen - the reason is in the details
Energy was one of the most freely traded goods in the post-Second World War era, even behind the Iron Curtain. A flood of sanctions has eroded that in recent years. But are the latest EU-US trade deal and Donald Trump's tariff threats an even greater danger? Under Thursday's trade pact, the EU has agreed to buy an extra $250 billion of US energy each year until 2027, and invest $600 billion in the US by 2028. Separately, Mr Trump has proposed 'secondary tariffs' on countries buying Russian oil, notably India. US Treasury Secretary Scott Bessent told China that it would face 100 per cent tariffs if it continued to purchase Russian oil, for which it is the biggest customer. The reality of the European deal can be dismissed in detail. Impossible numbers The bloc imported $76 billion of American coal, liquefied natural gas (LNG) and oil last year. The US exported $318 billion of energy to all its customers, and EU customers imported nearly $407 billion of energy from all suppliers. So, the US would have to divert all its energy exports to Europe, and Europe would in turn have to buy almost exclusively from America. Yes, US LNG exports are set to rise substantially. Here are some easy gains in energy trade for the EU. The last remnants of the old Russian gas empire will be swept away, as Brussels plans to end imports from its hostile neighbour by 2027. But prices are likely to fall as new supply comes online over the next five years, from Qatar, the UAE, Canada and elsewhere as well as the US. Japan and South Korea have also agreed to buy more American energy products. Meanwhile, the EU's bulk energy buys will probably keep falling, as renewables and electric vehicles meet more of its needs. 'Europe' does not buy energy – its companies and consumers do. There is no way for Brussels to redirect energy trade on the massive scale required to meet these commitments. Big chunks of the imports are from Norway, Algeria and Azerbaijan, tied into the EU by gas pipelines. These are not going to be diverted elsewhere, whatever the White House tries to dictate. Similarly, US companies decide whom to sell to on commercial, not political grounds. Here, admittedly, some combination of arm-twisting and subsidies might divert trade. But that is more likely to relate to large, visible, single inward investments such as Japan's reported interest in the $44 billion Alaska LNG project. One-trick trade pony European companies would invest in renewable, hydrogen and electric vehicle projects in the US – but these are undercut by the current administration's hostility. The withdrawal of tax incentives, increased barriers to receiving permits, and onerous rules on foreign content, make them unappealing. As Nippon Steel found out in its purchase of US Steel, sizeable foreign acquisitions of American companies are also likely to face unreasonable opposition and an opaque process of lobbying to win approval. The reliance on energy sales shows the US to be a one-trick trade pony – or at best, three tricks, including agricultural goods and weapons. Its other goods are not very competitive – gas-guzzling cars and planes that fall out of the sky – and will become even less so as tariffs drive up input costs for key materials such as aluminium, steel and copper. Ultimately, such trade commitments by Europe are not going to raise US oil and gas output. So, even if fulfilled, they just shuffle energy trade around. Sanctions could be a different matter. Mr Trump could execute his threat of 100 per cent tariffs against India and China if they persist in buying Russian oil. This is a bizarre approach to defeating Moscow's war against Ukraine, instead of imposing stronger sanctions on specific customers and shippers, which is the same approach used against Iran. Beijing will not back down; it cannot allow its economic model, its foreign policy, its alignment with Moscow, to be dictated by Washington. It buys about two million barrels per day of Russian oil. New Delhi might concede, though. It has not changed its policy yet, but Reuters reported that Indian oil refineries had paused purchases of Russian oil while matters are worked out. India's imports of Russian oil averaged 1.8 million barrels per day in the first half of this year. The third major customer, Turkey, takes about 250,000 barrels daily. If India and Turkey drop out, China would no doubt step up its purchases of Russian oil, but it would not take all the remainder. This is partly for logistical reasons, but also political. It would gain further leverage over its junior ally, and could extract generous discounts, as it does from Iran, where it is essentially the only customer. So, there would probably be an overall reduction in Russian oil exports. The gap would be filled by Opec+, depending on its policy decisions, and potentially by higher US output. But US oil production will only increase if prices rise substantially. Mr Trump has shown himself acutely sensitive to inflation and to the concerns of American drivers, preferring lower rather than higher prices, to the discomfort of his supporters in Texas. So how does this all tie together? Less Russian oil and gas means more room for Gulf suppliers. If they end up sending less to Europe to fill a gap in India, or if prices rise enough to boost American production, the US may then supply more to Europe, cosmetically satisfying part of the trade deal. The inconsistency and volatile, contradictory messages emanating from the White House make all this very hard to evaluate. There's a good chance that the impending 'secondary tariffs' never materialise. Yet what is clear that a free and liquid energy market is being replaced by a constrained and politicised one.
Zawya
34 minutes ago
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Mideast Stocks: Most Gulf markets fall on weak earnings, US economic worries
Most stock markets in the Gulf ended lower on Sunday hit by lacklustre earnings, while a cooling U.S. labor market clouded the Federal Reserve's policy outlook as investors scrutinized recent U.S. tariff decisions. U.S. President Donald Trump signed an executive order on Thursday imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries that failed to reach trade deals with Washington by his August 1 deadline. Saudi Arabia's benchmark index dropped 0.8%, hit by a 1.2% decline by oil behemoth Saudi Aramco ahead of its earnings announcement on Tuesday. Jabal Omar Development slid 5.4%, after posting a second-quarter loss. The developer - which runs the Jabal Omar complex of hotels and property near Mecca's Grand Mosque - was hit by reduced hotel revenues and a 106 million riyal ($28.26 million) property impairment charge, which lowered gross profit. Among other losers, Saudi Basic Industries Corp - 70% owned by Saudi Aramco - retreated 1.2%, after reporting a second-quarter loss. The chemical firm attributed its losses to 3.78 billion riyals in impairment charges and provisions related to a cracker closure in the UK in line with a portfolio review to reduce costs and improve profitability. Oil prices - a catalyst for the Gulf's financial markets - fell $2 a barrel on Friday due to jitters over a potential production hike by OPEC and its allies, while a weaker-than-expected U.S. jobs report fed worries about demand. Eight OPEC+ countries meeting on Sunday have agreed to raise oil output in September by 548,000 barrels per day, Reuters reported citing two OPEC+ sources while the meeting was still under way. Elsewhere, Saudi Aramco Base Oil Co plunged 10% - its biggest intraday fall since its listing in December 2022 - following an 18% drop in quarterly profit. In Qatar, the index fell 0.8%, with Qatar Islamic Bank losing 1.8%. Outside the Gulf, Egypt's blue-chip index added 0.2%, helped by a 3.2% rise in tobacco monopoly Eastern Company . SAUDI ARABIA fell 0.8% to 10,833 QATAR dropped 0.8% to 11,168 EGYPT up 0.2% to 34,272 BAHRAIN lost 0.2% to 1,952 OMAN down 0.2% at 4,770 KUWAIT eased 0.4% to 9,294 ($1 = 3.7511 riyals) (Reporting by Ateeq Shariff in Bengaluru; Editing by Joe Bavier)
