Little Helper! 04 April 2025

This week Unique Properties closed a US$ 50 million deal for a residential plot of land, spanning 25.4k sq ft, (equating to US$ 1,949 per sq ft), on the Jumeirah Bay Island, also known as Billionaire Island. Located off the coast of Jumeirah and developed by Meraas Holding, the island, (in the shape of a seahorse), spans some 6.3 million sq ft. It is connected by a 300 mt bridge and is home to a mix of low-rise residences, luxury villas, a boutique resort, a world-class marina, and the prestigious five-star Bvlgari Hotel.

Morgan’s International Realty estimates that Dubai’s branded residences command a 42% premium, on average, over non-branded ones, with the former garnering US$ 896 per sq ft compared to US$ 632 per sq ft for unbranded residences. The top ten in the branded sector are Bvlgari, Atlantis Resorts, Dorchester Collection, Baccarat, Four Seasons Resorts, Armani, One & Only Resorts, Six Senses Resorts, Bugatti and The Ritz Carlton Hotel at per sq ft, US$ 2,906, US$ 2,558, US$ 2,054, US$1,965, US$ 1,861, US$ 1,563, US$ 1,405, US$ 1,329, US$ 1,276 and US$ 1,183. H2 sales of branded units surged 48.0%, on the year, to 7.6k. with the emirate housing 43.1k units in one hundred and thirty-two branded residences, with the record price being US$ 75 million. It is estimated that Dubai has 1.3k ready-branded units, valued at US$ 1.87 billion, with over 6.3k more currently under construction, worth US$ 6.78 billion. Meanwhile, Savills posts that Dubai continues to retain its leading position as the most active market internationally for branded residences, followed by Miami, New York, Phuket and London. 

Land deals – comprising 2.93k transactions, (193.8% higher on the year) and valued at US$ 9.67 billion – remained buoyant in Q1. The total real estate market performed likewise in the quarter, posting its second ever highest quarterly return of US$ 8.89 billion, (30.3% higher on the year), with overall transactions totalling 45.49k – up 22.8% from Q1 2024. The record quarterly sales occurred in the previous quarter, with 50.22k sales, worth US$ 40.11 billion.

DXBinteract data indicates that shows villa sales, at US$ 11.25 billion were 43.1% higher on the year from 8.37k deals, while apartment sales jumped 12.6% to US$ 16.98 billion from 32.88k transactions. The 1.21k commercial sales were up 25.2% to US$ 981 million. The last five years have seen rising property values as shown for the Q1 median prices.

Rising property values in recent years are highlighted by  annual increases in Q1 median price per sq ft from 2021 to 2025 – US$ 242, US$ 306, US$ 350, US$ 408 and US$ 426. Over the past six years, property sales have more than quadrupled:

• 2020 – US$ 5.72 billion          9.8k transactions
• 2021 – US$ 6.70 billion          11.6k transactions;
• 2022 – US$ 14.88  billion       20.2k transactions
• 2023 – US$ 24.25 billion        31.1k transactions
• 2024 – US$ 29.84  billion       37.0k transactions

The top five performing areas of Dubai in terms of volume in Q1 were:

• Jumeirah Village Circle           3,605 transactions     US$ 1.24 billion
• Wadi Al Safa                           3,596 transactions     US$ 2.08 billion
• Business Bay                           2,782 transactions     US$ 1.98 billion
• Dubai South                            2,676 transactions     US$ 2.38 billion
• Dubai Marina                          2,583 transactions      US$ 2.53 billion

Sales  categorised by value indicates:

• Below Dhs 1 million    19% of sales               11,899            Below US$ 272k
• Dhs 1 – 2 million         31% of sales               14,242           US$ 272k – US$ 545k
• Dhs 2 – 3 million        19% of sales                  8,567            U$$ 545k – US$ 817k
• Dhs 3 – 5 million         15% of sales                  6,837            US$ 817k – US$ 1.36m
• Over Dhs 5 million        9% of sales                  3,939            Over US$ 1.36m

Primary sales accounted for 35% of total sales, in terms of volume, and 39% in value with the balance 65% and 39% for primary sales.

With the main aim of improving road safety, last October issued a decree, amending a number of traffic violations which include imprisonment and penalties of up to US$ 54k; last Saturday, 29 March 2025, they came into effect. Some include:

Driving under the influence              fines up to US$ 2.7k/a jail term or both; licence suspension between three to six months

Driving under the influence of drugs fines up to US$ 5.4k and a jail term; repeat offenders having their licence suspended for up to a year and cancelled for third-time offenders

Fleeing an accident/failure to stop    a prison term of not more than two years and/or fines ranging from US$ 1.3k to US$ 2.7k

Reckless drivers who cause death      imprisoned and fined US$ 1.3k; if the accident happens  

under “severe circumstances”, like driving under the influence or through flooded areas, then the penalty will be at least one year in jail and/or US$ 2.7k in fines.

Taaleem Holdings PJSC posted its H1 financial results, (ending 28 February), with double-digit growth noted for operational revenue, premium enrolment numbers and capacity by 18.2% up to US$ 178 million, by 18.8% to 3.16k and by 28.7% to 55.29k.  Net profit before tax dipped 3.6% to US$ 48 million, as operating costs rose 23.7% to US$ 25 million. However, when current and deferred tax are considered, the total comprehensive income came in 15.4% higher at almost US$ 44 million. Khalid Al Tayer, Chairman of Taaleem, noted that “I am delighted to report Taaleem’s continued growth and strong performance”, and that “looking ahead to the second half of the year, I remain confident in our continued growth trajectory”, and that  “we are focused on maximising the utilisation of our existing capacity while further expanding our total capacity through new schools and developments.”

Taaleem LLC is involved in management and operations of the following schools: Dubai British School, American Academy for Girls, Raha International School – Sole Proprietorship LLC, Greenfield International School, Jumeirah Baccalaureate School, Uptown International School, Dubai British Foundation Kindergarten, Dubai British School Jumeirah Park, Raha International School Khalifa-A – Sole Proprietorship LLC, Jebel Ali School,  Dubai British School Jumeirah,  Dubai British School Mira, Harrow International School – LLC – OPC (obtained a trade license from the Department of   Economic Development to operate in Abu Dhabi).

Almost nine years ago, the federal government liberalised fuel prices so that they could be aligned with market rates until the onset of the pandemic which saw prices frozen by the Fuel Price Committee, in 2020. The controls were removed in March 2021 to reflect the movement of the market once again. April retail prices have declined, around 6.0% and 5.0% (for diesel), compared to March prices. The breakdown of fuel prices for a litre for April is as follows:

Super 98      US$ 0.700 from US$ 0.744     in Apr           down 1.5% YTD US$ 0.711     

Special 95   US$ 0.670 from US$ 0.711      in Apr           down 1.6% YTD US$ 0.681        

E-plus 91     US$ 0.649 from US$ 0.692      in Apr           down 2.0% YTD US$ 0.662

Diesel           US$ 0.717 from US$ 0.755      in Apr            down 1.8% YTD US$ 0.730

In September 2021, the country introduced the concept of ‘Comprehensive Economic Partnership Agreement’. Since then, there have been twenty-six agreements by the end of Q1 2025. During the previous quarter, five CEPAs have been signed with Malaysia, New Zealand, Kenya, Ukraine, and the Central African Republic. To date, six of these agreements have officially entered into force, with fourteen others having been signed and are undergoing technical and ratification procedures in preparation for implementation. The remaining six agreements have been finalised, and their signings are expected soon.  The UAE is also in the final stages of CEPA negotiations with several major economies—most notably Japan—with talks expected to conclude before the end of this year. The CEPA programme continues to broaden the UAE’s trade and investment partnerships, strengthening the country’s role as a hub for open and multilateral global trade.

The CEPAs with Costa Rica, signed last April, and Mauritius came into effect on Wednesday. There are twelve deals signed and awaiting ratification, with markets around the world, consolidating its status as a trade facilitator and global gateway for goods and services. Dr Thani bin Ahmed Al-Zeyoudi, Minister of State for Foreign Trade, noted the CEPAs’ contribution to record non-oil trade last year, which reached an all-time high of US$ 817 billion, marking a 14.6% hike over 2023. Under the Mauritian CEPA, more than 97% of UAE exports to Mauritius will benefit from immediate tariff elimination or gradual tariff reduction over a maximum of five years, whilst Costa Rica will see 99.8% of UAE exports benefitting from zero or reduced customs duties.

For the fourth consecutive year, the latest Global Entrepreneurship Monitor ranks the UAE first globally. Out of fifty-six countries surveyed, the UAE also topped the list as the best place for entrepreneurship and SMEs, whilst excelling in eleven out of the thirteen key indicators, including entrepreneurial finance, government policies, education, and ease of market entry. GEM also highlighted the UAE’s business-friendly policies, government initiatives and competitive investment climate.

In line with its dividend policy, (which is paid out in April and October), Parkin has the right to distribute the higher of net income or free cash flow to equity. H1 payment of US$ 54 million was made, equating to US$ 0.0181 per share, whilst the H2 dividend payment of US$ 77 million, equating to US$ 0.0233 per share, will take place on 23 April. Meanwhile, starting today (04 April), Parkin will introduce its variable pricing based on peak- and off-peak usage, which will boost 2025 revenue figures, and be visible in Q2 returns. The policy will apply to all of Parkin’s public parking portfolio and to about 35% of spaces it manages on behalf of developers. The variable pricing policy – based on peak and off-peak hour usage – will take effect across 100% of Parkin’s public parking portfolio and to about 35% of spaces it manages on behalf of developers. The tariff is also based on:

Peak hours: 8am to 10am and 4pm to 8pm

• US$ 1.63, (AED 6), per hour for premium parking spots.
• US$ 1.09, (AED 4), per hour for all other public paid parking spaces.

Off-peak hours: 10am to 4pm and 8pm to 10pm

• The tariffs remain unchanged.

The free parking status quo remains for overnight parking, Sundays, and public holidays.

Pursuant to Article 22 (2) of the Insurance Authority Board of Directors Resolution No. 15 of 2013, concerning Insurance Brokerage Regulations, the Central Bank of the UAE has revoked the licence of Dynamics Insurance Brokers. Report findings indicate that Dynamics Insurance Brokers failed to comply with the licensing terms and requirements issued by the CBUAE.

Because of the Eid Al Fitr holiday, the DFM opened the week, on Wednesday 02 April, ten points higher, (0%), the previous week, shed one hundred and fifty-nine points (3.1%), to close the trading week on 4,951 points, by Friday 04 April 2025. Emaar Properties, US$ 0.08 higher the previous week, shed US$ 0.45, closing on US$ 3.23 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.67, US$ 5.53 US$ 1.96 and US$ 0.37 and closed on US$ 0.66, US$ 5.22 US$ 1.96 and US$ 0.35. On 04 April, trading was at one hundred and eighty-nine million shares, with a value of US$ one hundred and seventy-two million dollars, compared to eighty-six million shares, with a value of US$ eighty-nine million dollars, on 28 March.

The bourse had opened the year on 4,063 points and, having closed on 28 March at 5,110 was 1,047 points (25.8%) higher YTD. Emaar had started the year with a 01 January 2025 opening figure of US$ 2.16, and had gained US$ 1.52, to close on 28 March at US$ 3.68. Four other bellwether stocks, DEWA, Emirates NBD, DIB and DFM started 2025 on US$ 0.67, US$ 4.70, US$ 1.56 and US$ 0.38 and closed March 2025 at US$ 0.67, US$ 5.53, US$ 1.96 and US$ 0.37.

By Friday, 04 April 2025, Brent, US$ 2.37 higher (2.5%) the previous three weeks, shed US$ 6.19 (9.7%) to close on US$ 65.67. Gold, US$ 25 (0.8%) higher the previous week, shed US$ 60 (2.0%) to end the week’s trading at US$ 3,024 on 04 April.

Brent started the year on US$ 74.81 and shed US$ 1.82 (2.4%), to close 31 March 2025 on US$ 72.99. Gold started the year trading at US$ 2,624, and by the end of March, the yellow metal was trading at US$ 3,113 – US$ 489 (18.6%) higher YTD.

Having previously announced additional voluntary adjustments in April and November 2023, the eight OPEC+ countries – Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman – agreed on which previously announced additional voluntary adjustments in April and November 2023. The virtual meeting agreed to commence a gradual and flexible return of the 2.2 million bpd voluntary adjustments starting from 01 April 2025, with all eight members starting a production adjustment of 411k bpd.

The UK’s Competition and Markets Authority, along with European regulators, have announced that major car manufacturers and two trade bodies are to pay a total of US$ 595 million for “colluding to restrict competition” over vehicle recycling.  Ten major manufacturers – BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall and Volkswagen – were “caught”, whilst Mercedes Benz should have been fined but escaped because it seemed they grassed on their peers by alerting the authorities of their participation. The two trade bosies were the European Automobile Manufacturers’ Association and the Society of Motor Manufacturers & Traders. The CMA imposed a combined penalty of almost US$ 101 million while the European Commission handed out fines totalling US$ 494 million (It was alleged that the accused had illegally agreed not to compete against one another when advertising what percentage of their cars can be recycled, as well as colluding to avoid paying third parties to recycle their customers’ scrap cars).

Last Friday, Elon Musk posted that his xAI had acquired X (formerly known as Twitter), in an all-stock transaction for US$ 45.0 billion, including debt, with a combined value of US$ 80.0 billion. AI, which was launched in 2003, recently raised US$ 6.0 billion from investors at a valuation of US$ 40.0 billion. 

Hooters of America, which currently directly owns and operates one hundred and fifty-one restaurants, mainly in the US, is planning to deal with it debts by selling them to a group of two existing Hooters franchisees; a further one hundred and fifty-four are operated by franchisees. It has filed for bankruptcy in its base state, `Texas, but it has confirmed that its restaurants will stay open during the process and operate “in a business-as-usual manner”. In line with its peer casual dining chains, over recent years, it has been facing a battle of rising costs and wages, as well as customers spending less. Hooters’ chief executive, Sal Malili posted that “our renowned Hooters restaurants are here to stay,” and that “today’s announcement marks an important milestone in our efforts to reinforce Hooters’ financial foundation.” The chain, founded in 1983, is known for its serving staff, who are mainly young women – known as “Hooters Girls” – as well as its chicken wings.

In the ever growing Forbes’ latest billionaires list, (its thirty-ninth edition), Elon Musk has taken the top spot from French luxury goods titan Bernard Arnault, whose LVMH, owns brands like Louis Vuitton and Moet Hennessy.  Musk was already top of Forbes’ real-time billionaires list, with his net worth climbing 75% to an estimated US$ 342.0 billion, attributable to a jump in wealth following big new valuations of SpaceX and his AI company xAI, as well as a twelve-month rise in Tesla stock. The latest list sees an additional 8.9%, (247) with a new total of 3,028 billionaires, worth US$ 16.1 trillion, but there are no women in the top ten list, dominated by tech leaders, and eight from the US, with two exceptions, one being Frenchman Arnault and his family with US$ 178 billion in fifth place. Places two to four are taken by Mark Zuckerberg, Jeff Bezos and Larry Ellison, worth US$ 216.0 billion, US$ 215.0 billion and US$ 192.0 billion; six to ten include Warren Buffet, Larry Page, Sergy Brin, Spain’s Amancio Ortega and Steve Ballmer, worth US$ 154.0 billion, US$ 144.0 billion, US$ 138.0 billion, US$ 96.0 billion and US$ 91.4 billion.

ABF is majority-owned by the billionaire Weston family who, until 2021, owned the department store Selfridges, and now owns Primark which this week saw the demise of its chief executive for the past fifteen years, with its share price sliding nearly 4% to US$ 24.11 after Monday’s announcement. The retailer is a key part of the wider ABF business, contributing nearly 50% of the group’s overall sales of US$ 25.87 billion. Paul Marchant resigned following an allegation by a woman about “his behaviour towards her in a social environment”. ABF’s chief executive George Weston, commented, “I am immensely disappointed. Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual.” He added: “At ABF, we believe that high standards of integrity are essential. Acting responsibly is the only way to build and manage a business over the long term.” This process seemed to tick all the right boxes and should be a lesson to the likes of the BBC and the Church of England, on how to deal with senior staff who have misbehaved and have their misdemeanours covered up by the establishment.

Travis Perkins, the builders’merchant hasposted lower financial 2024 figures, with revenue 4.7% lower at US$ 5.94, a 40.3% reduction in adjusted profit to US$ 141 million and a 2024 pre-tax loss of US$ 100 million, mainly attributable to impairments, restructuring costs and the write down in the value of a number of branches. In March, and after only six months in the job, Pete Redfern, quit as CEO, “as a result of ill health” with immediate effect; on the news the company’s share value sank to its lowest level in sixteen years.

It seems that the last ever UK blast furnaces could be permanently closed within days, as its Chinese owners, Jingye, decided to cut off the crucial supply of ingredients, including coal, iron ore and other raw materials, keeping them running. The owner of Brutish Steel, which had bought the company out of receivership in 2020, having rejected a US$ 646 million offer to replace the existing furnaces with electric arc furnaces, stopped talks with the Department for Business and Trade; Jingye considered the offer too little to justify the extra investment required.

On Tuesday, the Central Bank of the Russian Federation today set the exchange rates of major currencies against the rouble, including raising the US dollar exchange rate by 1.81 roubles compared to the previous day’s rate, to 85.4963 roubles, the euro by 2.77 roubles, to 92.4276 roubles, and the Chinese yuan exchange rate by 26 kopecks, to 11.7136 roubles.

The Central Bank of the Republic of Korea Republic posted its second ever highest net profit figure US$ 5.31 billion – 575% higher on the year – driven by robust income from securities trading and interest. Gross revenue was 36.5% higher at US$ 18.00 billion, with 2024 year-end assets up 11.0%, at US$ 404.73 billion, attributable to the appreciation of its foreign currency assets amid a strong dollar.

Driven by strong demand for the country’s semi-conductors, the Republic of Korea’s exports, in March, were 3.1% higher on the year – its second consecutive month of increase, driven by robust demand for semiconductors, (up 11.9% on the year to US$ 13.1 billion). The Ministry of Trade posted that March outbound shipments came in 3.2% higher, at US$ 58.3 billion, whilst imports rose at an annual rate of 2.3%, to US$ 53.3 billion, resulting in a trade surplus of US$ 4.98 billion.

UK house prices rose 3.9% year-on-year in March, unchanged from February, according to data released by Nationwide, the UK’s largest building society. Month-on-month house prices were flat. The average house is now worth US$ 351.1k. It is forecast is that house prices will remain flat because of the April changes to stamp duty, with many buyers would have saved cash if bought before the deadline.

 It does appear that LHR Airport had days earlier been warned about the “resilience” of its power supply debacle before a fire which shut down the airport. Indeed, it seems that Nigel Wicking, chief executive of Heathrow Airline Operators’ Committee, that he spoke to Heathrow twice in the week before the closure on 21 March. When speaking to MPS this week he queried why the airport was closed for so long and why it was not more prepared. He said he had spoken to the Team Heathrow director on 15 March about his concerns – six days before the fire – and the chief operating officer and chief customer officer on 19 March – two days before the fire. Speaking on behalf of the airlines that use the facility, he commented that “we expect resilience, we expect there to be the capability there and the understanding of when a power supply or an asset is not available, what will you do next, and how quickly will you bring it back?”

Monday witnessed global stock markets nosediving, whilst gold benefitted, climbing 1.2% to a record high of US$ 3,128 per oz, before nudging US$ 9 lower to US$ 3,128.  With carmakers’ shares taking the brunt of the losses, Japan’s Nikkei was down 3.6%, Germany’s DAX by 1.76%, France’s CAC by 1.67% and the FTSE 100 by 1.20% – stemming from concerns that all imported cars into the US will face a 25% tariff.  On Thursday, the S&P 500 plunged 4.8%, shedding roughly US$ 2 trillion in value, the Nasdaq almost 6.0% and the Dow Jones 4.0%. Earlier, in the day, the UK’s FTSE 100 share index dipped 1.5% and other European and Far Eastern markets also fell. Analysis of FTSE All World data by the investment platform AJ Bell on Thursday evening put the value of the peak losses among indices at US$ 2.2 trillion. Friday saw the FTSE 100 slump 4.95% – its biggest drop in five years. Apart from the enhanced reputation of gold being a safe haven, there was also a move into the safety of government bonds with prices rising and yields falling on benchmark German, French and US bonds, with the UK ten- year government bond dipping 1.0% to 4.66%. The 10% tariffs go into effect tomorrow, 05 April, and the higher reciprocal rates on 09 April. Describing the announcement as “Liberation Day”, Trump explained that the “reciprocal taxes” were a response to duties and other non-tariff barriers put on US goods.

With the EU expected to react to the Trump trade tariffs, by initiating their own reciprocal ‘taxes’, there are reports that the UK will not follow suit immediately. There are some analysts that forecast US will see slower growth, (or even a recession), and increasing inflation above 4.0%, thus stymieing the Fed’s aim to cut rates. The US consumer will be impacted, and their confidence levels will invariably decline, resulting in lower household spend and a fall in consumer savings. That could have a major impact in the US and globally, where US consumer spending amounts to about 10% to 15% of the world economy. There are estimates that these measures could knock 1.0% off European growth, whilst China could see a marginal 0.3%dip to 4.2%.

It seems that the UK got off lightly following the Trump tariff release figures, with a 10% levy – a lot lower than many other countries including Vietnam, China, Japan and the EU with reciprocal tariffs of 46%, 34%, 24% and 20%; they were a lot more draconian than many analysts had expected. Russia is seemingly missing from the listing. The UAE and Saudi Arabia will face a universal 10% tariff on imports, with Pakistan facing a 29% tariff while India – 26% and Philippines – 17%. The global response was almost instantaneous, equity markets and the dollar quickly headed south. Led by the likes of traders, shippers and financial institutions, the Nikkei was trading 3.3% lower, with other bourses following downward trends – FTSE 100, Dax, S&P 500, (with big consumer names such as Nike and Apple among the hardest hit), Nikkei, Dow Jones and Nasdaq by 1.5%, 2.0%, 2.8%, 3.0%, 3.0% and 4.0%. Both the EU and China showed their concern, with the former indicating that countermeasures were on the way, whilst the EU’s Ursula von der Leyen said they were a major blow to the world economy and said that the twenty-seven-member bloc was prepared to respond if talks with Washington failed. China has hit back by imposing a 34% tariff on US imports, with the Ministry of Commerce filing a lawsuit against the Trump administration with the World Trade Organisation. Tokyo said it was leaving all options to respond to the “extremely regrettable” duties. Although energy products have been exempted from these tariffs, Brent has fallen by almost 10%, on fears of their impact on global economic growth. The big names got a smacking from the market – with Nike, Apple, Adidas, Puma, Pandora and LVMH falling 11.0%, 9.0%, 10.0%, 9.0%, 12.0% and 5.0%. Meanwhile Harley-Davidson shed 4.5% whilst retailers Best Buy and Target were 12.0% and 9.0% lower. While stocks fell, the price of gold, which is seen as a safer asset in times of turbulence, touched a record high of US$ 3,168 before falling back.

Jonathan Reynolds, the Business and Trade Secretary has told the Commons that the UK government is launching a consultation with businesses on how taking retaliatory tariff measures against the US would impact them and adding that he believes a deal with the US is “possible” and “favourable” but adds that the UK reserves the right to take any action it deems necessary if an agreement is not secured. He will seek the views of stakeholders until 01 May on products that could potentially be included in any tariff response, and that the government would draw up an “indicative list” of US products which the UK could tariff in response to Trump’s 10% tariff.

There are some experts who have voiced concern that if the current level of tariffs remains in place, the US consumer would buy less, (because of the higher prices) and consumer spending would be less because of the dollar value in the pocket is unchanged but the prices of goods being bought have moved higher; in short the world’s biggest shopping  population will be buying less from overseas. In the likely event that other nations retaliate, with their own sanctions, US exporters will be impacted. So, it will not take long for global trade to slow, with a possible recession on the cards and those goods that used to be sold in the US have to find a new market. An unwelcome increase in ‘dumping’ is inevitable.

The country that was hit by the highest Trump tariff was tiny Lesotho, having to pay an additional 50% import tax. According to White House figures, in 2024 while the US exported less than US$ 3.0 million worth of goods to the southern African enclave, its imports from there amounted to over US$ 237.0 million; the tariff set was based on the difference between the value of imports and exports. So as far as the President is concerned,  the tiny kingdom is Trump’s Little Helper!