Here’s a quick look at some important news developments over the past week
Sheikh Mohammed approves Dubai’s largest ever budget for 2025-2027 with $82.2 billion expected revenue
In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has sanctioned Law No. (23) of 2024, which pertains to the general budget cycle for the Government of Dubai for the fiscal years 2025-2027, along with the general budget for the fiscal year 2025.
This three-year budget cycle for 2025-2027 has received approval for a total expenditure of AED272 billion ($74 billion), while total revenue is projected to reach AED302 billion ($82.22 billion). Marking the most substantial budget cycle in the emirate’s history, it reflects Dubai’s aspirations for sustainable economic growth, enhanced community welfare, and the reinforcement of its status as a hub of opportunity and innovation.
For the fiscal year 2025, estimated expenditures are set at AED86.26 billion, with anticipated revenues of AED97.66 billion. The budget also incorporates a general reserve of AED5 billion in revenues, highlighting the emirate’s dedication to fostering development projects, invigorating the overall economy, and achieving the ambitious objectives outlined in the Dubai Plan 2030, the Dubai Economic Agenda D33, and the Quality-of-Life Strategy 2033.
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UAE’s non-oil sector projected to grow between 4 percent and 5 percent in 2025: IMF
Dr. Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), has stated that the economic growth of the UAE is expected to outpace other Gulf Cooperation Council (GCC) countries in 2025, primarily fueled by the non-oil sector. In remarks made to Emirates News Agency (WAM) during a conference organized by the Dubai International Financial Centre (DIFC) in partnership with the IMF, titled “Regional Economic Outlook for the Middle East and Central Asia – October 2024,” Dr. Azour indicated that the UAE’s non-oil sector is projected to experience growth rates between 4 percent and 5 percent in 2025. He emphasized that this strong growth highlights the effectiveness of the country’s economic policies.
Adaptability amid global challenges
Dr. Azour praised the UAE’s ability to adjust to global economic and geopolitical changes, pointing out its role as a critical hub between major economic blocs and a center for international events. He noted that, despite facing global challenges, the UAE economy has shown remarkable adaptability and utilized modern technology to thrive, which allows the country to maintain high growth rates.
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764 major deals drive $15.79 billion in Abu Dhabi, Dubai bourses this year
Since the start of the year, the local stock markets in the UAE have experienced a total of 764 significant transactions, amounting to around AED58 billion ($15.79 billion) and involving 18 billion shares. The Abu Dhabi Securities Exchange (ADX) was responsible for a remarkable 95.6 percent of this total transaction value, with the Dubai Financial Market (DFM) contributing the remaining 4.4 percent.
Transactions at ADX
At ADX, there were 549 transactions, encompassing 16.6 billion shares valued at AED55.4 billion. The largest transaction was attributed to Abu Dhabi National Energy Company (TAQA), which saw 78 deals totaling AED22.4 billion over 7.6 billion shares. Following TAQA, Fertiglobe recorded AED13.28 billion through 44 transactions involving 4.15 billion shares. Additionally, International Holding Company (IHC) completed a notable single transaction worth AED4.38 billion.
Performance at DFM
In contrast, DFM recorded 215 transactions, trading 1.35 billion shares valued at AED2.54 billion. The largest deal in this market involved Mashreq, valued at AED782.1 million, followed by BHM Capital at AED363.5 million, and Taaleem Holdings, which exceeded AED245.7 million.
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UAE attracts $16 billion in greenfield FDI capital inflows in 2023
The UAE attracted $16 billion in greenfield FDI capital inflows last year. The most prominent countries involved in these investments were the U.S., India, the U.K., Saudi Arabia, and France, highlighting the UAE’s position as a preferred destination for international investors.
Mohammed Abdul Rahman Al Hawi, under-secretary of the UAE Ministry of Investment, said that in 2023, key sectors driving the growth of greenfield FDI in the UAE included business services and software and IT services, which created a significant number of jobs and attracted substantial capital. Moreover, sectors such as financial services, industrial equipment, and transportation and warehousing played an important role in contributing to this growth.
“These investments led to a 7.5 percent rise in total jobs created, along with a 31 percent increase in the number of announced projects, and a 37 percent rise in announced greenfield foreign direct investment (FDI) capital inflows,” he said in statements to WAM. He added that the UAE expects these investments to generate nearly 50,000 jobs from 1,332 projects.
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S&P predict robust growth in UAE Islamic finance driven by non-oil economy, $6.1 billion sukuk surge
S&P Global Ratings anticipates that the UAE’s Islamic finance sector will continue to experience robust growth in the near future, buoyed by the strong performance of the non-oil economy.
The agency reports a notable increase in sukuk issuance in foreign currencies since the start of the year, particularly within the real estate and financial institutions sectors, as efforts are made to attract more foreign investment.
Moreover, S&P Global Ratings expects interest rate reductions to persist until the conclusion of 2025, which will support global issuance growth. The insurance sector in the UAE, encompassing both conventional and Islamic insurance, is projected to expand by 15 to 20 percent, driven by positive economic indicators and ongoing infrastructure projects.
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