Forever Young!                                                                   21 March 2025                    

KeyMavens Real Estate Development launched Montage – The Al Jaddaf – Dubai’s first urban residentia resort, set for completion in 2027. Engel & Völkers Middle East will oversee sales and marketing for the project, which includes one-bedroom and two-bedroom apartments. It is set for completion in 2027. The project comprises one and two-bedroom apartments, with Portola, a full-floor sanctuary of unparalleled experiences, outdoor pools surrounded by lush urban forests to immersive indoor wellness retreats. Oher features include a welcoming luxury lobby/ lounge, fitness centre, pool & deck retreat, ice room, cold plunge therapy, oxygen room, 180-degree relaxation room, Himalayan salt room, lagoon-style children’s pool, virtual reality room, urban forest and red-light therapy.

So far this year, the five leading nations, when it comes to purchasing Dubai real estate, are India, UK, Italy, Russia and Pakistan, as the local market continues to attract a diverse global audience. Betterhomes noted that Italian and Egyptian sales rose by 22% and a very impressive 150%. The consultancy added, “this year, we’ve seen a clear shift in buyer demographics, with a significant rise in Egyptian and Italian investors. Many of our Egyptian clients are seeking stability amid currency fluctuations, while Italians are drawn to Dubai’s tax advantages and luxury lifestyle. It’s not just about buying property – it’s about securing their future in a globally recognised market”

This week, the Dubai Land Department launched the pilot phase of the ‘Real Estate Tokenisation Project’. This initiative is set to digitise property transactions by converting real estate assets into blockchain-based digital tokens, significantly enhancing transparency, efficiency, and accessibility in real estate investment. Following the pilot phase, DLD will conduct a comprehensive evaluation to refine the project before full-scale implementation. It is expected that by 2033, this advanced technology, the first introduced in the ME region, will account for 7% of Dubai’s realty sector, valued at US$ 16.35 billion. This project was developed in collaboration with the Dubai Virtual Assets Regulatory Authority andDubai Future Foundation through SandBox Real Estate. The Real Estate Tokenisation Project is designed to:

• expand investment opportunities by allowing multiple investors to co-own a single property through tokenised assets
• attract global technology firms to the UAE’s real estate market
• strengthen Dubai’s position as a leading hub for virtual assets and digital economy
• enhance transparency and governance, ensuring secure and efficient real estate transactions
• support innovation by integrating advanced blockchain solutions into Dubai’s property sector

UAE’s Rove Hotels has been named the official partner for Dubai Airshow 2025 that will take place over five days from 17 – 21 November 2025. The first Rove hotel opened at Downtown Dubai in 2016, and the brand now has over 6.5k rooms open.

With the triple aims of strengthening the country’s judicial system, developing the country’s indicators related to the rule of law and enforcement of justice, and achieving effective justice based on the concepts of partnership and integration, the federal cabinet has approved executive regulations for the law regulating the legal profession and legal consultation profession. Its specifications include the conditions for:

• transferring a lawyer from the roll of lawyers practising before the courts of first instance and appeal to the roll of lawyers practising before the Federal Supreme Court

• practical training for trainee lawyers and the obligations of the lawyer supervising the training, along with the regulations for licensing non-national lawyers to practise law in the UAE

• registering researchers and legal advisors, including the regulations for deleting and re-registering a researcher or legal advisor, as well as the powers of legal advisors

• establishing the register of law and legal consultation firms and the procedures for licensing, suspension, deletion, and liquidation thereof, as well as the regulations for the equivalency of university qualifications

Furthermore, Emirati lawyers and legal consultants may establish professional companies individually or in partnership with international law firms after obtaining the necessary approvals from the competent authorities, provided that these firms have been established for at least fifteen years and have branches or companies in at least three other jurisdictions.

The World Happiness Report 2025, published by Gallup, sees the UAE climbing to twenty-first, ahead of the likes of the UK, the US, Germany, France, Singapore, and all Arab countries, but behind Finland (number one for the eighth consecutive year), Denmark, Iceland, Sweden and Iceland; at the other end of the scale comes Afghanistan, Sierra Leone, Lebanon, Malawi and Zimbabwe. The Happiness Index is based on a three-year average of quality-of-life assessments across different nations. The UAE ranks:

• sixteenth globally for donating money, reflecting its culture of generosity
• nineteenth for volunteering time, reinforcing its commitment to social welfare
• twelfth in the world for believing a stranger would return a lost wallet, showcasing strong societal trust
• sixty-seventh for helping a stranger, indicating an area for improvement

The study noted that the UAE consistently ranks high due to its economic stability and giving culture, which are closely linked to happiness, and that UAE’s strong job market, economic growth, and high living standards have contributed to increased happiness levels, with 2025 declared the ‘Year of Community’ to further strengthen social bonds.

A recent survey by Perspectus found that UAE professionals work an average of seven extra unpaid hours per week, raising concerns about work-life balance and employee well-being. Some alarming statistics see 90% of employees responding to work emails and calls outside official working hours, a high 59% struggling to disconnect from work when at home and 76% saying that the work-life balance has become more skewed since the pandemic. The fact that employees are working harder should be a wake-up call for employers, particularly if they want to retain happy and motivated staff. Psychologists suggest that reducing work hours could significantly improve employees’ mental and physical well-being, reinforcing the need for companies to strike a better balance between productivity and employee health.

Additional insights from the survey show that:

• 55% of employees feel that working beyond official hours is an unspoken expectation
• 43% worry that if they do not put in extra time, someone else will
• 33%of respondents said their boss directly told them to work harder
• while 34% of employees feel loyal to their company, they do not believe their employer reciprocates that loyalty

With National Central Cooling Company, a 51% shareholder, and Dubai Holding Investments, with the balancing stake, a concession agreement has been signed to provide district cooling services for Palm Jebel Ali. The major shareholder, also known as Tabreed, is 82% owned by sovereign investor Mubadala (42%) and the French low-carbon energy and services company ENGIE (40%), This structure is designed to optimise cooling capacity, enhance information-sharing and strengthen customer protection, while ensuring sustainable cooling solutions for this transformative development. The project is expected to cost US$ 409 million, with construction work expected to start in Q2; the first cooling services is expected to be delivered by 2027.

It seems that every other week a new CEPA is announced, with news that Tunisia is the latest to enter into negotiations with the UAE. The triple aims of a Comprehensive Economic Partnership Agreement are to strengthen bilateral trade and investment, by reducing tariffs and trade barriers, improving market access, and creating new investment pathways across key sectors. The UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi noted that Tunisia is a valuable trade partner, with non-oil trade topping US$ 350 million – 7.7% higher compared to last year; the UAE is Tunisia’s top trade partner in the GCC region. A CEPA paves the way for new opportunities for JVs, particularly in agriculture, manufacturing and renewable energy sectors. To date, an impressive twenty-six CEPAs have been finalised which is one of the reasons why the country’s 2024 total trade reached an all-time high of $816 billion – 14.6% higher on the year.

The UAE General Civil Aviation Authority has unveiled the region’s first national regulation, ‘CAR Airspace Party Uspace’, dedicated to certifying air navigation service providers for unmanned aircraft.  This has been introduced because of the need to set up a robust protocol for entities looking to deliver air navigation services for drones. It will ensure that drone navigation will be able to immediately operate into the existing aviation ecosystem, while ensuring a safe and efficient airspace. It will also encompass all the other variables that will impact the running of this relatively new form of flying. This will include contracting, training, quality assurance, safety protocols, future planning, auditing, and certification. 

Last year, National Bonds distributed US$ 160 million in returns to sukuk holders who had invested US$ 4.31 billion by the end of last year – a 22.5% annual increase. Some savers earning up to 4.75%, while the overall average return rate stood at 4.02%. 2024 also witnessed a 51% increase in the number of regular savers, highlighting the growing demand for structured savings plans in the community. There was also a 41% 2024 hike in digital savings. National Bonds continues its low-to-medium risk strategy to ensure capital protection, with an investment spread of:

• up to 20%        bank deposits
• 30% – 40%      fixed income assets
• 10% – 12%      listed equities
• 8%                    private equity
• 20%                 real estate

In 2024, National Bonds became one of the first companies to offer end-of-service benefits programmes, in partnership with the Ministry of Human Resources and Emiratisation. The firm has also an annual rewards programme, valued at almost US$ 10 million, along with other tangible incentives, aims to inspire a disciplined saving culture.

A resolution, to make it easier for free zone businesses to expand their mainland operations, has been issued by Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid. All that is required for any free zone company that wishes to avail of this service is to obtain the necessary permits from the Department of Economy and Tourism. It is expected that this initiative will also create a more dynamic and efficient business environment, drive job creation and innovation, as well as fostering a competitive economy. All establishments, operating outside the free zone and within Dubai when this resolution takes effect, must comply with its provisions within one year from its effective date.

Following yesterday’s US Federal Reserve’s announcement, to maintain the Interest Rate on Reserve Balances as is, the Central Bank of the UAE followed suit and decided not to change the 4.40% Base Rate applicable to the Overnight Deposit Facility. The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at fifty bp above the Base Rate for all standing credit facilities. The Base Rate signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.

This week, Nasdaq Dubai welcomed its latest listing – a US$ 1 billion ten-year unsecured sukuk at a rate of 5.038%, by the Government of Ras Al Khaimah; this brought the bourse’s total value of sukuk to over US$ 92.7 billion, resulting in the value of debt securities, currently listed on Nasdaq Dubai, to US$ 136.2 billion across one hundred and fifty-seven issuances. Fitch Ratings has forecast a robust UAE debt capital market this year, expecting its value to top US$ 400 billion over the next few years. This will be achieved by several drivers, including funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the Dirham Monetary Framework implantation.

The DFM opened the week, on Monday 17 March, two hundred and seven points lower, (4.0%), the previous four weeks, shed forty-one points (0.8%), to close the trading week on 5,100 points, by Friday 21 March 2025. Emaar Properties, US$ 0.15 lower the previous week, gained US$ 0.08, closing on US$ 3.65 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.68, US$ 5.46 US$ 2.06 and US$ 0.36 and closed on US$ 0.66, US$ 5.44 US$ 1.97 and US$ 0.36. On 21 March, trading was at two hundred and forty-five million shares, with a value of US$ two hundred and fifty-four million dollars, compared to dollars two hundred and ten million shares, with a value of US$ one hundred and two million dollars, on 14 March.

By Friday, 21 March 2025, Brent, US$ 0.19 higher (5.8%) the previous week, gained US$ 1.56 (2.2%) to close on US$ 72.14. Gold, US$ 149 (5.2%) higher the previous fortnight, gained US$ 25 (0.8%) to end the week’s trading at US$ 3.109 on 21 March.

The latest Post Office Travel Money study, offering the best value for money for UK holiday makers, ranked Portugal’s Algarve the cheapest out of forty-six destinations surveyed. The analysis compared prices for eight typical tourist items and discovered the Algarve offers significantly lower prices than many other spots. It found that a cup of filter coffee cost just US$ 1.64, a 200ml bottle of suncream – US$ 6.58 – and a three-course evening meal for two with a bottle of house wine – US$ 52.20. These compared to the most expensive destination, New York, where the three items cost US$ 4.88, US$ 10.54 and US$ 166.02 – more than triple the cost found in Portugal.  Overall, prices for UK visitors to the Algarve dipped 1.6% on the year, driven by the low cost of meals and drinks, and an annual 1.8% rise in the value of the pound against the euro. Other locations offering value to UK tourists include Cape Town, Tokyo and Bali. Interestingly, it was noted that in over half of the destinations surveyed, there were declines in prices on the year, with the sharpest fall noted being Dominican Republic’s 26.5%.

Your morning coffee may become a little more expensive, with latest reports showing that world prices rose 38.8% on the previous year’s average, to attain a multi-year high in 2024. According to the Food and Agriculture Organisation of the United Nations, the main driver was inclement weather, affecting key producing countries. The FAO noted that last December, Arabica, the higher quality coffee favoured in the roast and ground coffee market, was selling 58% higher on the year, while Robusta, used mainly for instant coffee and blending, was 70% higher in real terms. These latest figures showed that the price differential between the two coffee varieties had narrowed for the first time since the mid-1990s. The FAO warns that the price may rise even further this year for a stack of reasons, including the possibility of further significant supply reductions, along with adverse weather in Brazil, reduced output in Indonesia, and limited export quantities from Vietnam, where farmers are replacing their coffee crops with durian to cash in on this emerging market; the country’s durian market share in China almost doubled between 2023 and 2024, and some estimate the crop is five times more lucrative than coffee.

According to figures, Brazil and Vietnam account for nearly 50% of world coffee production, with global coffee production, which in 2023 topped eleven million tonnes valued at over US$ 20 billion annually; the global coffee industry generates over US$ 200 billion in annual revenues. The value of total coffee trade is estimated at over US$ 25 billion per year. In 2023, coffee export earnings accounted for 33.8% of total merchandise exports in Ethiopia, 22.6% in Burundi, and 15.4% in Uganda. The largest coffee importers were the EU and the US.

Earlier in the year, talks between Nissan and Honda would have resulted in the creation of a mega US$ 62.13 billion car giant. This week, there are reports that the former is to cease negotiations. It was only last November, the carmaker had ended a twenty-five-year alliance with Renault, (which had reduced its equity in the alliance), and Mitsubishi, amid warnings that it would have just fourteen months to survive without a partner. It seems that the breaking point this time was that Nissan did not want to be a Honda subsidiary, indicating that control could have been a contentious issue. If it had borne fruition, the new alliance would have created the third-largest global car manufacturer and helped both companies have a stronger chance of competing against the growing number of Chinese car brands in export markets. Honda has released a statement, insisting there are no plans to end discussions between the two companies. There is no doubt that Nissan will be on the lookout for a new partner, with one possibility being Taiwan’s Foxxconn, the world’s largest producer of contract electronics. Such a deal would see the tech company helping to develop fully electric models, such as future generations of the Leaf hatchback.

Volkswagen saw a marginal 1.4% decrease in 2024 sales, to 4.8 million vehicles, attributable to a sluggish economy and strong competition. Strangely, China was the German car maker’s biggest source market where it sold nearly 2.2 million vehicles. Its revenue stream nudged US$ 2.6 billion higher to US$ 356.4 billion. However, their best-selling item was currywurst – a sliced German sausage, covered with ketchup and curry. Volkswagen sold around 8.5 million currywurst sausages during 2024 – a 200k increase compared to twelve months earlier. VW is not the only carmaker doing a sideline – Peugeot has produced a wide range of salt, pepper and coffee grinders.

Volkswagen AG’s Audi posted that it will lose as many as 7.5k positions (about 14% of its German workforce), by 2029, as its margins begin to head south; these retrenchments will not impact actual factory workers.  The move to slash spending is to make the carmaker more competitive, with 2024 deliveries declining by 12%, as it struggled to gain traction in markets such as China. Over this five-year period, it plans to invest up to US$ 8.7 billion to introduce new cars to better compete in the US and China. By the end of 2026, the plan will also include introducing ten new models to the US market to try and regain the 14% slump in 2024 sales. It is also adding ten new plug-in hybrid vehicles, by the end of this year, amid slowing demand for its fully electric models. It has already started making its Audi Q6L e-tron electric SUVs in China, with local partner, FAW, and will make additional cars there for local customers from mid-2025. Its parent company, VW, is planning to ditch 35k from its payroll, whilst Porsche AG plans to cut 1.9k positions as it contends with muted luxury demand in the key Chinese market.

Having raised a further US$ 1.0 billion in new equity financing, Elon Musk’s social network X now has a market cap of some US$ 32.0 billion – almost the same as in 2022 when he took the company private. Some of the new financing could be used to pay down its remaining debt. At the time of the buyout its debt was at US$ 12.5 billion. It was not known who invested in this latest round but it appears that Elon Musk did participate. He is known for utilising the private markets to back some of his enterprises; these include SpaceX, which completed a tender offer valuing the startup at about US$ 350 billion, and xAI, which is said to have canvassed investors about raising fresh funding at a valuation of US$ 75 billion.

There are also concerns about the state of Tesla’s finances after reports that board members and top executives, have recently been offloading their shares, valued at over US$ 100 million,  including Elon Musk’s brother, Kimbal. Reports indicate that Tesla shares have lost more than 50% of their value, equivalent to more than US$ 800 billion off its market cap.

Google has agreed to settle a Californian lawsuit after a former employee, in 2011, said workers from Hispanic, Latino, Native American and other backgrounds started on lower salaries and job levels than their white and Asian counterparts. The tech giant agreed to pay US$ 28 million but rejected the allegations made against it. Earlier this year, Google joined a growing list of US firms that are abandoning commitments to principles of diversity, equity, and inclusion (DEI) in their recruitment policies. Meta, Amazon, Pepsi, McDonald’s, Walmart and others have also rolled back their DEI programmes.

On Tuesday, Apple posted that it would buy the Israeli-based Wiz for about US$ 32 billion which would be the tech giant’s biggest ever acquisition, as it starts to focus on cybersecurity in the cloud-computing race against Amazon.com and Microsoft. This deal will enable Google to solve fast-growing cybersecurity solutions that companies use to remove critical risks. Google has fallen behind Microsoft Azure for enterprise customers, and to catch up it needs to enhance a deeper suite of services, including security software. Alphabet shares have slumped 13% YTD, exacerbated by its heavy spending, as against the rise of China’s lower-cost DeepSeek. Only last year, Wiz rejected a US$ 23.0 billion bid by the US tech giant. Wiz has agreed to a termination fee of more than 10%, one of the highest fees in MA history. Under the Biden regime, there was a tightening up in antitrust policies, with the sector hoping for a marked easing on big MA regulation. However, Trump has already indicated that he would continue heavy scrutiny on Big Tech. Indeed, so as to head off regulatory concerns, Google has emphasised that Wiz would continue working with competing cloud platforms.

In the US, Starbucks has been hit with a damages award of US$ 50 million after a delivery driver needed skin grafts after being burned, when hot tea was spilled over him at a California drive-through. It is claimed that an employee did not wedge the scalding-hot tea firmly enough into a takeaway tray. The incident took place five years ago, with the prosecution lawyer noting that “this jury verdict is a critical step in holding Starbucks accountable for flagrant disregard for customer safety and failure to accept responsibility.” Starbucks said it sympathised with the victim but plans to lodge an appeal, believing the “the damages awarded to be excessive”.

Last Monday, US$ 5.72 billion was wiped off the market caps of Tesco, (down 15%), Sainsbury’s, (9%) and Marks & Spencer, (10%), after the new executive chairman of rival Asda had posted that the grocer was planning its biggest price cuts this century. Allan Leighton, who was appointed last November, was reported to have said that there was a “war chest” available to Asda and indicated he was prepared to “materially” forego profits in the short term to win back market share. He added that “we have a long way to go. We’re three months into what is going to be three years of really getting the basics of the business right and getting the business to outperform the rest of the industry on a like-for-like basis. That’s what restores our market share and profitability.”

Indeed, Leighton has history and knows the market inside out – and hence the Monday fall-out. In the early 1990s, he, and the current M&S chairman, Archie Norman, rescued Asda from collapse before selling the business to US giant Walmart in 1999. By 2003, Asda occupied the number two slot, taking that position from Sainsbury’s but after Walmart insisted on preserving margins, it was inevitable that the only way for the retailer was down, with Sainsbury’s soon returning to its former second position. By 2019, there was a merger attempt with Sainsbury’s which was soundly rejected by the competition watchdogs. Then their troubles really started with Walmart offering a majority shareholding to TDR Capital, founded by the billionaire brothers – Mohsin and Zuber Issa – who had made their fortunes from petrol forecourts. Asda then began to lose its market share, as it had taken on debt during the takeover and had lost its competitiveness. Tesco and Sainsbury’s made good of the opportunity, as did Aldi and Lidl to a lesser extent. After appointing several managers to run the business, unsuccessfully as it turned out, TDR Capital bought out in June last year to take a majority 67.5% stake while Mohsin Issa, who retains 22.5% of the business, relinquished the day-to-day running of the business.

Over the Christmas period, Asda was the worst-performing supermarket but within weeks it announced a ‘Big Jan Price Drop’ price-cutting campaign which saw average price reductions of 26% on selected products. Following that, the chief executive reintroduced the ‘Rollback’ price-cutting promotions he and Mr Norman introduced in the 1990s in a bid to revive the spirit of the old ‘That’s Asda Price’ campaigns, complete with shoppers patting their back pockets, backed by heavy newspaper and television advertising. Asda was able to punch above its weight by features such as big, well-targeted price cuts, snappy advertising and excellent product availability.  This latest initiative introduces a wider than normal price cutting exercise than has been seen in the past. He has also expended US$ 56 million on extending opening hours for some stores and has also bolstered his management team. Whether Leighton can spread the same magic he performed in the 1990s, over thirty years ago, remains debateable, as the retail environment has been turned on its head since then; even the likes of discounters Aldi and Lidl had a miniscule market presence.

Further problems that will hit the sector in the coming weeks is the 01 April increase in the national living wage and the 1.2% rise in employers’ national insurance contributions, to 15.0%, will spill over resulting in increased costs for the supermarkets, including payrolls and supplies; some of these costs will inevitably fall on the consumers. The British Retail Consortium estimates that food price inflation is picking up in staples such as eggs, milk and butter and that it will top 4.0% by the beginning of H2. Further problems will be the cost of implementing new recycling regulations due in October.

News this week that Santander bank plans to make seven hundred and fifty redundant and  close 21.4% of its branches which would leave three hundred and forty-nine branches open; of that total, thirty-six  will operate on reduced hours branches and eighteen will be “counter-free”. The bank justifies this move by claiming that financial transactions completed in branches have fallen 61% since 2019, while the use of internet banking to open accounts and conduct banking surged. With the closures, Santander said 93% of the UK population will continue to be within ten miles of a Santander branch, and that closing branches are all within one mile of the nearest Post Office. It also indicated that its customers can conduct banking in eleven thousand Post Office branches nationwide and one hundred and twelve banking hubs.

It is reported that Burger King UK, backed by the private equity firm Bridgepoint, is opening talks with lenders about major refinancing of US$ 51.67 million of borrowing and US$ 142.13 million borrowing capacity to help finance the delivery of its business plan.  The fast food eatery owns about 50% of its six hundred UK outlets, with the balance run by franchisees. Bridgepoint has already committed US$ 45 million of fresh equity, as part of Burger King UK’s business plan, as the company plans to open thirty new restaurants and remodel fifty of its current portfolio.

New research by Pagefield indicated that UK businesses are increasingly turning to the ME as a prime investment destination, that has seen the number of business leaders, with interest in the region, doubling over the past five years; more than 36% of them consider the ME as a key investment hub. Despite this increase, Europe maintains its leading position, whilst Asia is fast becoming a hot spot with interest 10% higher to 32%. Investment in the US remains steady, hovering around the 40% mark (42% current vs. 45% prospective investors), but new trade tariffs, under President Trump’s administration, pose uncertainty, potentially deterring future deals. A striking 83% of UK firms say the Government must do more to support international expansion, with nearly a third (31%) identifying Free Trade Agreements (FTAs) as the single most important mechanism. Perhaps ministers could travel to Dubai to see how successful   UAE CEPAs (Comprehensive Economic Partnership Agreements), have been.

A North Dakota court has ordered Greenpeace to pay Energy Transfer US$ 667 million in damages including for defamation, trespassing and conspiracy, in their role in the 2016-2017 protests against the Dakota Access Pipeline. The Texas-based pipeline company accused the advocacy group of paying protesters to disrupt construction of the pipeline unlawfully and spreading falsehoods about the controversial project. Greenpeace will appeal the decision, denying wrongdoing and calling the case an attack on free speech rights. T

It is reported that UAE developers have invested over US$ 3.0 billion in The Maldives, with the aim of transforming part of the iconic archipelago into luxury real estate resorts.  Although the country does not allow freehold ownership, per se, foreign investment in island property is permitted requiring approval of the Ministry of Tourism. The investment is expected to transform the island nation into a vibrant second-home market for the ultra-wealthy, with potential returns of 20% being touted.

In the first two months of the year, China’s value-added industrial output rose 5.9% on the year whilst industrial output, (which measures all enterprises with an annual turnover of US$ 2.8 million plus), came in 0.51% higher last month.

Last week, SW Queensland was cleaning up after ex-tropical cyclone Alfred, had wrought its damage. Now most of the population are in another battle – not against the elements but against the insurers. Probably for the first time in Australian political history, the leaders of both the Labour ruling party, Prime Minister, Anthony Albanese, and the Coalition’s, Peter Dutton, both agreed that insurers are “ripping off” Australians. Unfortunately, neither party has announced a policy to address the issues in the insurance sector, but Albanese did confirm that his government will hold insurers to account as they begin to receive flood claims.

There are reports that flood cover has tripled in parts of SW Queensland in the past two years, and already the SW Regional Organisation of Councils has taken their concerns to the Insurance Council of Australia. One such family has seen their insurance premium from US$ 2.21k to US$ 8.54k and has decided to take the risk of no insurance because otherwise it would be unable to make house payments; many other families are in the same situation. Local member for Maranoa and Nationals leader David Littleproud said, “something’s not right”, and “I think insurance companies are having a lend of us.” He also queried that “we need to make sure these insurance companies are not gaming the system at regional Australia’s expense because they simply don’t see the mass market here for them.”To many, insurance costs have skyrocketed and now it has become a luxury expense, rather than a necessity. The Insurance Council of Australia, trying to justify their position, noted that the increasing cost of insurance was due to the “escalating costs of natural disasters, the increasing value of homes … [as well as] inflation pushing up building repair costs and the increasing cost of reinsurance”.

As expected, and for the second consecutive month, the US Federal Reserve officials held their benchmark interest rate steady, with its key lending rate at between 4.25% – 4.5%. Noting a marked rise in economic uncertainty, it did expect slower growth this year, along with higher inflation, driven by Trump’s trade tariffs which has also resulted in nervous financial markets. There are fears that such actions could hamper the Fed in its aims to bring inflation down to its long-term 2.0% target, while maintaining a healthy labour market. It also pencilled in a further two rate cuts before the end of 2025.

The EC has introduced new measures to sustain and expand Europe’s industrial capabilities in the steel and metals sectors. Its Steel and Metals Action Plan has targeted enhancing the sector’s competitiveness and securing its future. The two sectors are facing challenges arising from high energy costs, global competition, and the need for investments to reduce greenhouse gas emissions. It has been estimated that the steel and metals industry is essential to the EU economy, directly and indirectly employing approximately 2.6 million people and contributing around US$ 86.57 billion to the bloc’s GDP.

The OECD’s 2025 growth projection has been cut by 0.2% to 3.1% commenting that “with higher barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending”. Its projection was mainly based on weaker expected growth in the US and the eurozone, with inflation “to be higher than previously expected”. It has cut US growth by 0.2% to 2.2% this year and 0.6% lower in 2026 at 1.6%; the eurozone growth projection is down 0.3% to 0.7% but will bounce back in 2026, reaching 1.2% next year. China continues to outshine most of its global peers with growth this year and in 2026, expected to come in at a healthy 4.8% and 4.4%. The Federal Reserve has also downgraded its 2025 US forecast by 0.4% to 2.1%.

The Starmer administration received some good news for a change – latest data indicates that wage growth has remained strong; wages, excluding bonuses, grew in the quarter ending 31 January by 5.9%, the same percentage as in the previous quarter. However, wages – including bonuses – dipped to 5.8%, so that with official inflation at 3%, wage growth is still high and well above the rate of overall price rises. Since last July, wage increases have surpassed the level of inflation which could be a factor that there may be no immediate rate cuts over the coming months. The unemployment rate remained flat at 4.4%, with the number of employees on payrolls “broadly flat”, with little growth seen over the last year. Rather distressingly, the ONS figures showed the economic inactivity rate for people aged 16 to 64 years was around 21.5% in the quarter.

Even though its own independent forecaster expected UK government borrowing, (the difference between spending and income from taxes), to be US$ 8.40, February’s borrowing came in 64.6% higher at US$ 13.83 billion. This will undoubtedly add further pressure on Chancellor Rachel Reeves ahead of her Spring Statement next week where she will announce spending cuts to meet her self-imposed rules for the economy, which the Treasury reiterated were “non-negotiable”. Some consider that she may have to miss her self-imposed borrowing rules. Her two main rules are not to borrow to fund day-to-day public spending; and to get debt falling as a share of the UK economic output by 2030. At her October Budget, the Office for Budget Responsibility indicated Reeves had US$ 12.80 billion available to spend against her borrowing rules; next week it will probably reveal that the chancellor’s buffer has been “wiped out”.

With its operating company filing for bankruptcy protection, it seems that Forever 21, founded in 1984 by South Korean immigrants, is a step nearer to going out of business, even though the retailer posted that its stores and website in the US will remain open as it “begins its process of winding down”. In 2019, when it filed for bankruptcy for the first time, a group of investors ended up buying it through a JV. It also confirmed that it would conduct liquidation sales at its stores and that some or all of its assets would be sold in a court-supervised process. At its peak in 2016, of the eight hundred Forever 21 shops five hundred were located in the US. Its shops and e-commerce platforms, outside of the US are operated by other licence-holders and will not be affected by the bankruptcy protection filing. There is no doubt that starting forty years ago, its inexpensive, trendy clothes and accessories became increasingly popular with young people and over the next few decades, the brand became a competitor of fast-fashion giants such as Zara and H&M. However, it does seem that time has caught up with the retailer and that Forever 21 cannot be Forever Young!

It’s Getting Serious!                                                                       07 March 2025

With many experts pointing to a slight decline in the Dubai property market, it will come as a shock for them to see February data. The month saw a total of 16.1k transactions, (35.5% higher on the year) and a breakdown reveals those sales for:

              Villas                       3,679              99.7% higher      US$ 5.12 billion     

                   Apartments          11,364             21.3% higher       US$ 5.83 billion     

                    Plots                          608                74.7% higher       US$ 2.62 billion

                    Commercial                                   40.1% higher       US$ 0.33 billion  (US$ 423 per sq ft)

fäm Properties estimates that over the past five years, Dubai’s February property sales have moved 449% higher in value, to US$ 13.92 billion in 2025; and up 31.2% on the year. The most expensive property sold, at US$ 38 million, last month was a luxury villa in Hadaeq Sheikh Mohammed Bin Rashid, with an apartment sale in The Rings – 1 at Jumeirah Second selling for US$ 32 million. Prime sales accounted for 66% of total transactions and 62% by value. Properties below the US$ 277k threshold accounted for 25% of the market total, with those between US$ 272k-US$ 545k – 31% and above the US$ 1.36 million. Reports show that month-on month rental renewals posted a 30% drop in February – a probable indicator that there is a potential shift in the Dubai property landscape. It seems an increasing number of tenants are opting to own – and not continue to rent – their homes, more so because of the recent very high rental rates and the fact that demand is outpacing supply. There is no doubt that there is a shift to people making a longer-term commitment to stay in the emirate for longer.

Randy Fink, Asteco’s CEO, noted that, driven by positive market sentiment and strong demand, the UAE rental market recorded sustained growth throughout 2024. One of the consequences was that there was increased rental growth and activity in the lower and mid-end segments.  This in turn benefitted “affordable communities in Dubai and Abu Dhabi, along with the Northern Emirates, which attract tenants with their competitive rents, expanding supply of quality developments, improved infrastructure and enhanced accessibility. The flexibility of hybrid working arrangements has further supported this migration.”

According toSavills’ Andrew Cummings, “Dubai continues to be a standout destination for prime residential property, with capital values increasing 6.8% and rents growing by a record-breaking 23.5% in 2024. Population growth and an influx of high-net-worth individuals and family offices to the UAE are underpinning strong demand for residential property, particularly in the prime markets.” Over recent years, the emirate has become the leading global destination, eclipsing the likes of New York and Singapore, for ultra luxury homes (those valued at over US$ 10.0 million).  Last year, the population grew by 170k (4.65%) and in the first two month of 2025 by a similar 28k growth trend, (0.73%), to 3.853 million. Savills also noted that the average Dubai prime property is valued at US$ 930 per sq ft – much lower than other global city hotpots such as Hong Kong’s US$ 3,860, US$ 2,590 in New York, US$ 2,550 in Geneva, US$ 2,120 in Tokyo, and US$ 2,000 in Shanghai. Dubai is also in front when it comes to both capital value appreciation, (expected to almost reach 10.0% in 2025) and prime rental value which last year topped 23.5%, surpassing its 2016 market peak. Demand has strengthened by the advent of more ultra-high-net-worth individuals and high-net-worth individuals, “choosing Dubai because there are world-class schools and healthcare facilities, along with world class facilities and infrastructure in a safe and secure environment In addition, security and safety for the uber-rich is increasingly prominent.” Other demand sources include the traditional “big buyers” – the Indians – and  marked upticks from the UK, France, Spain, Italy and the Netherlands, and “we are seeing a real influx on the European side at the moment, particularly due to short flight times, ease of access, ability to spend more time here, and running their businesses back home from Dubai.”

Cavendish Maxwell posted that rents in Dubai South and communities along Sheikh Mohammed bin Zayed Road saw the emirate’s highest increases in 2024, rising by up to 30.0%. Overall, in the apartment sector, the three leaders were Dubai South, Al Furjan and Dubai Production City, moving 30%, 27% and 24% higher respectively. At the other end of the spectrum, but still in positive territory, were Palm Jumeirah, Al Habtoor City and Bluewaters Island, up by 5%, 3% and 1%. Not surprisingly, there were bigger increases noted in the villa sector including Palm Jumeirah, Al Furjan and Dubai Investments Park with rises of 52%, 39% and 38%. (Such impressive movements only occur when demand easily outpaces supply in an expanding market).

Asteco also noted that marked changes in rents happened when there is in a limited supply of units in established developments, an uptick in premium projects within average communities, and renovations or upgrades to existing properties. On the other side of the coin, communities with larger available inventories recorded no growth or marginal downward adjustments.  Cavendish Maxwell data indicated that average 2024 yields for apartments and villas came in on 7.4% and 5.1%, with the four leaders being Dubai Investments Park, International City, Dubai Production City and Downtown Jebel Ali at 10.3%, 9.4%, 8.6% and 8.6%.

Knight Frank estimated that, last year, the number of Dubai homes, available for sale, fell 30%, with a 52% prime reduction in home listings, as more end-users bought properties in the emirate to beat rising rentals. The agency added that “we have noted a rise in genuine end users, rather than speculative purchasers that have defined previous cycles”.

Knight Frank noted that the number of ultra-luxury homes, (those priced over US$ 10 million)available for sale declined 39.5% to 2.49k, over the last twelve months. The number of homes, available in the US$ 25 million-plus bracket, was down 75.3% to just eighty-six. The main driver is the influx of millionaires and ultra-high net worth individuals to the emirate, with the end result being a jump in per sq ft value to US$ 1,806 because of a massive decrease in inventory not able to meet the growing demand for luxury homes.  Last year, Dubai topped the global listing for sales of US$ 10 million plus homes with four hundred and thirty-five deals, of which a record one hundred and fifty-three were registered in Q4.

Aldar Properties’ third project in Dubai, (in partnership with Dubai Holdings), ‘The Wilds’, has seen phase 1 sold out, generating US$ 1.36 billion, through a series of local and international sales events. Phase 1 – including 3 B/R, 4 B/R and 5 B/R homes – comprised seven hundred and thirty-four villas, with 92% sold to expatriate residents and overseas buyers, with the three top nationalities being from India, China and the UK; of the total buyers, 52% were under the age of forty-five. The next phase will see a range of luxurious five- and six-bedroom mansions, designed by the renowned Lebanese architect Nabil Gholam, as well as one-to-three-bedroom apartments.

In its first year of operations, DHG Properties has already reached US$ 272 million in Gross Development Value, as it launches its second residential project in Dubai. After the success of Helvetia Residences in JVC last year, the Swiss developer has launched its yet-named US$ 82 million new project in Meydan, which comprises one hundred and ten apartments. It has also acquired a US$ 71 million prime plot on Dubai Islands for its third residential project in Dubai. Over the past thirty years, the company has completed more than three hundred projects in Europe, focussing on Switzerland and Serbia.

Cavendish Maxwell data indicates that there were 145k new off-plan unit launches in 2024, which averages out to almost four hundred units every day. The obvious main drivers have been the inflow of overseas developers and unprecedented local demand. The consultancy noted that “these impressive figures are not just the result of the recovery from the pandemic. They reflect a strong, stable property market that has seen consistent growth since 2022, driven by continued international demand from India, China and other ME countries in particular.” Emaar, Binghatti and Damac continue to lead the charge for the new launch market in terms of both units released and sales value in the off-plan segment. Mohammed Bin Rashid City saw the highest number of units delivered in 2024, with 5.3k new homes, followed by Jumeirah Village Circle (4.8k), Business Bay (2.8k), Al Furjan (2.6k) and Rukan, Dubailand (1.5k).

Cavendish Maxwell also posted that there are 243k new units, (roughly split 80;20, apartments:villas) in the pipeline, with that number probably enough to add stability to the sector and eventually end up with reduced price/rental increases. It expects that these units will all be delivered over the next three years. That is a lot of units considering that an estimated 46k were handed over last year. It notes that the five leading “supply locations” were Jumeirah Village Circle, Business Bay, Azizi Venice, Damac Lagoons and Arjan with 25.0k, 16.0k, 13.5k, 11.1k and 9.0k units to be delivered. Many other locations – including Palm Jumeirah, Dubai Hills, Dubai Marina, Jumeirah Village Circle and Triangle, Al Furjan, Dubai Silicon Oasis, Town Square, and Studio City – are expected to receive at least 2k units.

Last month, it was reported that there had been a 30% decline in month-on-month rental renewals, with rates for both apartments and villas up 3.0% in Q4. There is a feeling that there is a definite move away from rentals to ownership due to a surge in rental rates as the population growth nears an annual 5.0%.

According to Knight Frank, the total number of homes under construction now stands at 303k units, equating to 60.6k per annum. Of these, 80% will be apartments, with the remainder being villas and branded residences. (According to Cavendish Maxwell, 243k new units were in the pipeline for delivery until the end of 2027, equating to 81k per annum with Jumeirah Village Circle leading the chart;). If 10% of launches fail and there is a 20% lag, the number of new units over the next three years will be 51k. (60.6k + 81.0k = 141.6k/2 = 70.8k*.9= 63.72k*.8= 51k). The past five years have never seen a figure over 45k.

According to UAE-based Elite Merit Real Estates, investments by Chinese and Russian nationals in Dubai’s luxury real estate market grew by 15% and 20% last year. The increase reflects the BRICS factor influencing foreign capital inflows, with Dubai’s tax policies, infrastructure, and geopolitical stability attracting investors.

Sotheby’s International Realty claim that a six-bedroom Jumeirah Bay Island sold for US$ 90 million is the most expensive residence on what is known as ‘Billionaire Island’; this easily surpasses the previous record of US$ 66 million.  Encompassing a 26.9k sq ft plot, it is one of just three plots on the tip of the island, but the only one that has uninterrupted views of the Burj Khalifa and Downtown skyline. The villa is encased in full-height glass walls and boasts 13 mt-high ceilings, with the home built with exquisite materials, including Taj Mahal Quartzite, Patagonian marble, and walnut wood veneer. Other features include a beachfront infinity pool and a private stretch of white-sand beach. Jumeirah Bay Island, with just one hundred and twenty-eight plots, remains one of the most coveted addresses in Dubai. Meanwhile an Emirates Hills villa has just sold for US$ 116 million, with a super-luxury home in Jumeirah Bay Island selling for US$ 90 million and beating the previous record of US$ 66 million for that location.

A four-bedroom luxury villa, with two garages and several luxurious amenities, including a show kitchen, a grease kitchen, two living rooms, a dining room and a dedicated office space, has been listed for an annual US$ 2.0 million rent. Located on Palm Jumeirah and encompassing a 15k sq ft plot, the Signature Villa also includes two staff rooms. The Palm Jumeirah villa boasts a sleek contemporary design, with Fendi furnishings, premium finishes, and top-tier appliances. Residents enjoy luxury amenities, including a private gym, home theatre, jacuzzi, sauna, infinity pool, and cold plunge pool. The property is listed on Penthouse.ae – an online platform powered by Metropolitan and the luxury division of Metropolitan Premium Properties – in collaboration with Savills. The agency adds that “The Signature Villa is an ideal offering for UHNWIs seeking a once-in-a-lifetime rental opportunity in one of the world’s most sought-after locations. This villa is a true masterpiece, designed to cater to the most discerning clientele who expect nothing less than perfection in every aspect of their lifestyle.” This current offering easily beats the US$ 1.09 million for a penthouse in Downtown Dubai and the US$ 1.0 million rental for a five-bedroom townhouse in Jumeirah Bay Island’s Villa Amalfi community.

A first-of-its kind UAE platform is expected to utilise a bidding system to transform the way high-end luxury properties are rented. In simple terms, Bidbayt will offer a range of properties including houses, offices, and warehouses in high-demand areas, with the highest bidder securing the property. Khaled Yaser Mir Abdullah Amiri, the CEO and co-founder of the app, noted that “there are a lot of premium properties that people are ready to pay above the market price for,” and that “we have created a place for such rentals to be auctioned off to the highest bidder in a convenient and easy format.” The new entity estimates that this app could boost rental income by up to 20% and reduce the time to lease a property by 30%, compared to traditional methods. Supported by the Mohammed Bin Rashid Establishment for SME Development (Dubai SME), the app was recently recognised as one of the top ten proptech companies by the Dubai Land Department. It has been approached by several government agencies and is in discussions to explore how to replace in-person auctions with Bidbayt’s app auctions. There is a nominal US$ 81 charge per listing and a 0.5% commission fee on finalised rental terms.

An agreement between Dubai’s Roads & Transport Authority and Uber introduces Uber School to the emirate. Designed for schoolchildren, over the age of eight, and their families, it aims to offer an innovative, affordable transportation solution. Integrated into the Uber Teens accounts, this service offers enhanced safety features like real-time tracking, driver verification, and PIN authentication, along with safety, convenience, and cost savings. Real-Time Trip Tracking: Parents can monitor rides in real-time, receiving live updates, along with audio recordings to ensure peace of mind. Families can save up to 35% when booking a weekly trip package of ten or more rides.

In an agreement signed this week between the Roads and Transport Authority and Dubai Holding, US$ 1.63 billion will be invested for major upgrades to improve access to five Dubai Holding developments – Jumeirah Village Circle, Dubai Production City, Business Bay, Palm Jumeirah and International City. Bridges – both pedestrian and vehicle – will be developed and new roads built as part of the deal to improve access. Communities and projects also having infrastructure work carried out are:

• Dubai Islands
• Jumeirah Village Triangle
• Palm Gateway
• Al Furjan
• Jumeirah Park
• Arjan, Majan
• Liwan (Phase 1)
• Nad Al Hamar
• Villanova
• Serena

This investment is one of many in Dubai aiming to improve infrastructure. Last November, HH Sheikh Mohammed bin Rashid approved a five-year plan to transform the emirate’s road network; the twenty-one projects will encompass twelve residential, commercial and industrial areas, with six hundred and thirty-four km of new roads, costing US$ 1.0 billion. It will improve traffic flow to nineteen residential areas, including Al Barsha and Jumeirah; travel time is expected to be cut by 40%. A month earlier, it was announced that US$ 194 million would be spent to enhance traffic flow around the Trade Centre, with five main roads connecting it with SZR. It will include five bridges, spanning 5k mt in total, and turn it into a bridged intersection. Last month, Dubai’s Railbus project was announced at the World Governments Summit, with this new project complementing the existing metro and tram networks.

With the aim of supporting student-led solutions with global potential, GEMS Education, in partnership with Play Tech Centre, has introduced the ‘Next Billion Innovation’ US$ 1 million fund, initially only open to students at GEMS School of Research and Innovation, which opens its doors the next scholastic year in August. The chosen students will have access to incubator programmes and global startup ecosystems.

The Dubai International Financial Centre is planning to retrofit a building dedicated primarily to hedge fund startups looking to expand into the city. Set to open by the end of next month, the DIFC Hedge Funds Centre, with a 10k sq ft capacity, will cater to firms looking for short-term, plug-and-play offices, as they pilot their operations before scaling up.  It expects that up to thirty contracts will be signed by year-end. The two main source markets appear to be the US and the UK, with others from Singapore, Hong Kong and India. Housed in the former court building, tenants will have access to communal areas for networking, facility management and an environment already set up with desks, receptionists and trading capabilities. The majority of the seventy-five hedge funds in the DIFC manage more than US$ 1.0 billion in assets, so this move to smaller spinouts and independent launches is a strategic shift.

With Abdullah bin Touq Al Marri, Minister of Economy, attributing some of its success to the impact of the effectiveness of the UAE’s economic diversification strategies, there was a 3.8% growth in real GDP, to US$ 360.22 billion, (AED 1.322 trillion), in the first nine months of 2024. With a 4.5% hike, the non-oil sectors now contribute US$ 268.94 billion, (or 74.66%) to the country’s GDP. In a bid to raise its GDP to US$ 817.44 billion, (AED 3.00 trillion), over the next seven years to 2033, the UAE is aiming to become the leading global hub for the new economy, focussing on innovation and global partnerships.

The Ministry of Investment posted that, in 2023, the total new and announced capital inflows of foundational Foreign Direct Investment reached US$ 16.0 billion – an indicator on UAE’s position, as a preferred destination for international investors. Meanwhile, there was a 35% surge of FDI inflows, to US$ 30.68 billion in 2023. The Minister of Economy noted that the UAE is committed to providing a competitive legislative environment for new economy sectors. The primary sectors driving foundational investment growth in the UAE include business services, software, and IT services, which have generated numerous job opportunities and attracted substantial capital inflows. The growth has resulted in a 7.5% increase in total jobs, created a 31% rise in announced projects, and a 37% surge in total announced foundational foreign direct investment inflows.

The new state-of-the-art South Container Terminal at Jeddah Islamic Port has been unveiled this week, as part of a US$ 800 million expansion by DP World and Saudi Ports Authority (Mawani). This expansion, under a thirty-year Build-Operate-Transfer (BOT) agreement, will eventually result in a development, with a future capacity of five million TEUs, with additional ship-to-shore equipment to be deployed as demand grows. (The current expansion will see capacity more than double from 1.8 million TEUs to 4.0 million TEUs). This was DP World’s first concession outside the UAE and since 1999, the Jeddah terminal has played a crucial role in regional trade. This latest expansion cements Jeddah’s status as a trade gateway and supports Saudi Arabia’s Vision 2030 goals of boosting trade.

2024 proved another record year for DP World, as it handled 1.3 million vehicles across its terminals – 53.6% higher on the year. 96% of the total were in Jebel Ali port, with the remainder to be found at Mina Al Hamriyah and Mina Rashid. China was the top trading partner, responsible for 25% of total volumes, followed by Japan, Korea and India. The Jebel Ali Free Zone Authority is home to almost a thousand automotive and spare parts companies. Jebel Ali Port has developed the world’s largest and most advanced car market, spanning twenty million sq ft, with a capacity of one million car equivalent units.  Last year, the country issued two hundred thousand new trade licences and can now boast that over 1.1 million companies and economic institutions are operating in its markets.

Both the UAE President HH Sheikh Mohamed bin Zayed Al Nahyan and his counterpart Faustin-Archange Touadéra, witnessed the UAE and the Central African Republic signing a Comprehensive Economic Partnership Agreement (CEPA), aimed at enhancing trade and investment opportunities. This pact is expected to increase market access for locally produced goods in both countries by reducing or eliminating tariffs, removing trade barriers, and boosting investment in key sectors, including agriculture, infrastructure and technology. It also highlights the country’s growing trade network and its commitment to strengthening economic ties with African nations. Last year saw a 75% annual increase in bilateral trade to US$ 252 million. Over the past two years, the UAE has signed well over twenty CEPAs, all of which will help the country’s goal to boost non-oil trade to US$ 1.1 trillion by 2031.

A treble of higher profit margins, higher orders and higher pricing has seen the PMI data from S&P Global rising to its highest level in nine months. In contrast, the private sector witnessed costs move higher for the first time in seven months – perhaps a cautionary warning to the sector of what may happen for the rest of the year. Backlogged orders rose, as businesses were keen to source new work, but because of continuing intense competition, price increases have been capped, whilst business confidence going forward has been muted. As has been the case in recent months, the construction sector continues to stand out as the most active, with many new projects getting off the ground. Although some firms have increased their payroll, overall employment levels have remained flat, so that job creation continues to be subdued. Non-payments continue not only to be a nuisance but also a negative impact on many players’ cashflows in the private sector.

Airbus is looking to manufacture components for the A400M, a military transport aircraft, in the UAE, along with a training centre, with dedicated maintenance, repair, and overhaul facilities. According to Gabriel Sémelas, the President of Airbus in Africa and the ME, these developments are projected to solidify the UAE’s standing as a premier regional hub for aviation excellence, and this latest initiative will facilitate deeper integration of UAE-based entities, including EPI and Strata, into the global aerospace supply chain. Sémelas also added that job creation and skills development were cornerstones of Airbus’s industry localisation strategy, and that Airbus will implement robust targeted training and technical support initiatives.

It is reported that a major crypto exchange, Bitget, has plans to make Dubai a hub for its next phase of global expansion. As part of the process, it has applied for a licence from Dubai’s Virtual Assets Regulatory Authority.

The 14 February Don’t Worry, Be Happy blog detailed Salik’s impressive 2024 financials. This week, the toll-gate company has approved a US$ 0.042 share dividend, equating to a cumulative US$ 316 million payout. The firm’s current policy is to pay 100% of its net profit to dividends – in 2023, the dividend came in at just under US$ 281 million. Salik closed last year with two more tollgates in Dubai, bringing its total to ten. Ending the year with 25% more gates, a probable 5.0% 2025 hike in population, (and thus more cars  – and fines – on Dubai roads), extending revenue streams including barrier-free parking payment solutions at malls, the introduction of new variable usage rates, profits could easily rise to at least another 10% – and hence a potential 10% plus rise in dividend payments; revenue could come in over 25% higher on the year.

The DFM opened the week, on Monday 03 March, forty-four points lower, (0.8%), the previous fortnight, shed eighty-one points (1.8%), to close the trading week on 5,223 points by Friday 07 March 2025. Emaar Properties, US$ 0.23 lower the previous week, gained US$ 0.10, closing on US$ 3.75 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.72, US$ 6.02 US$ 2.09 and US$ 0.39 and closed on US$ 0.69, US$ 5.65 US$ 2.06 and US$ 0.32. On 07 March, trading was at two hundred and thirty-seven million shares, with a value of US$ one hundred and fifty-three million dollars, compared to three hundred and sixty-five million shares, with a value of US$ five hundred and ninety million dollars on 28 February.

By Friday, 07 March 2025, Brent, US$ 1.79 lower (2.4%) the previous fortnight, shed US$ 2.60 (3.6%) to close on US$ 70.39. Gold, US$ 94 (3.2%) lower the previous week, gained US$ 62 (2.2%) to end the week’s trading at US$ 2,907 on 07 March 2025.

Even with Trump pressure to lower oil prices, OPEC+ will proceed with plans to revive halted oil production, after repeated delays, by increasing production by 138k bpd next month. This will be the first in a series of monthly hikes to add 2.2 million bpd by next year, following two years of postponements.  On the news, earlier in the week, Brent crude dropped 2.1% to US$ 71.63 and ended the week on US$ 70.39, struggling under the US$ 70 threshold. No surprise to see the Trump impact on prices. There is no doubt that Saudi – and other producing nations – wanted a price hike and it seems that Crown Prince Mohammed bin Salman has compromised by pledging to invest US$ 600 billion in the US in a bid to strengthen the kingdom’s ties. Additionally, Washington’s ‘maximum pressure’ on Iranian exports could create a gap for other OPEC+ nations to fill, whilst sanctioned Russia may see more favourable conditions to ship barrels thanks to warmer relations with Trump.

Ahead of a meeting with crypto executives, Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve. The bitcoin used to finance this scheme is owned by the federal government which had been part of criminal or civil asset forfeiture proceedings, as confirmed by the administration’s crypto czar, billionaire David Sacks. Bitcoin will be the primary asset used but the reserve will also include four other coins – ether, XRP, solana and cardano. Sacks has confirmed that the strategy is to maximise the value of its holdings, without offering details, but that no such bitcoin will not be sold. Part of the President’s executive order was to develop “budget-neutral strategies” for acquiring additional bitcoin that have no “incremental costs” on taxpayers. By 4pm UK time today, it was trading at US$ 88.5k.

After Nasdaq-listed VinFast had agreed funding of around US$ 1.0 billion from UAE’s Emirates Driving Co, and other investors, it is expecting to sign a similar deal with a Qatari investment firm. This latest move, with JTA Investment Qatar, could result in a ‘potential equity investment’, as well as a ‘strategic partnership’ to support VinFast’s global expansion and technological development. On top of that, it is interested in another Vingroup entity – its portfolio of hotels and resorts, amusement parks and entertainment clusters. JTA Investment Qatar offers financing solutions in sectors such as energy, technology, infrastructure and tourism. The Vietnamese EV maker currently has two cars in the UAE – the VF8 Plus and the VF8 Eco – with prices starting at US$ 47.5k; 97k vehicles have been sold to date. The new funding will obviously help VinFast bolster its financial position and move into new regional markets. Vingroup noted that any ‘collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion.

There were red faces at Citibank last April when it was reported that the bank had mistakenly credited US$ 81 trillion to a customer’s account, when the actual amount should have been US$ 280. The error was reversed hours later after the transfer was missed by two employees and detected by a third employee ninety minutes after it was posted. The bank confirmed that no funds had left the bank, and it was disclosed as a “near miss” to the Federal Reserve and Office of the Comptroller of the Currency. Surprisingly, a total of ten near misses of US$ 1 billion or more occurred at Citi last year, according to the FT – down from thirteen registered in 2023.

In the biggest share sale on the Hong Kong bourse for more than four years, BYD Co raised US$ 5.6 billion, selling 129.8 million shares at US$ 43.12 each – a 7.8% discount on Monday’s closing price; the sale was several times over-subscribed. The company plans to use the fresh capital to expand its overseas business, invest in R&D, supplement its working capital and spend on general corporate purposes,  It is reported that Dubai’s Al-Futtaim Family Office participated as a strategic investor and it seems that the two firms plan to build on their successful collaboration and transition into a strategic partnership, focusing on areas including new EVs. Long-only investors and sovereign-wealth funds also bought shares in the deal. Last month, BYD sold 161% more on the year, at 318k pure electric and hybrid passenger vehicle, as it hit a record 67.0k in overseas sales. Interestingly, YTD its shares have jumped 46%, compared to Tesla declining 29%.

Last year, Seven & i, which operates some 85k global outlets, has once again had to fend off a take-over bid. Last year, it was a failed US$ 40 billion bid by Canada’s Alimentation Couche-Tard; this time, the Japanese owner of 7-Eleven is facing another takeover by its Canadian rival and has announced a package including a US$ 13.2-billion share buyback, and an IPO of its US SEI unit that operate its North American convenience store business. It also confirmed plans to buy back US$ 13.2 billion of its own shares using funds generated by the announced IPO and other restructuring measures. The company also announced the sale of its non-convenience-store business – comprising supermarkets, restaurants and other assets – to US private investment firm Bain Capital. It is reported that ACT has raised its offer to US$ 47.0 billion but this has already been rejected. A successful bid would merge the 7-Eleven, Circle K and other franchises to create a global convenience store behemoth.

Last Friday, a US court ruled that Riju Ravindran, a top official of Indian tech firm Byju, and the brother of the company’s founder, Byju Raveendran, had violated his fiduciary duty to lenders by wrongly hiding US$ 533 million. It is alleged that he had fraudulently transferred at least part of the money to a small hedge fund based in Miami to keep it out of lenders’ hands from them. The case was brought by creditors on a defaulted US$ 1.2 billion loan, with the judge siding with the creditors, entitling them to a financial damages award from Byju, with the amount to be determined in a separate hearing. The Indian firm is in deep trouble, fighting bankruptcy proceedings both in its home country and the US. It is not clear how much the firm is worth in India, with the US lenders hoping to liquidate several domestic education software companies that Byju’s purchased for US$ 820 million a few years ago and recoup outstanding balances.

With US$ 383 million owing, and requiring payment by year-end, as part of a multibillion-dollar loan package, India’s Oyo Hotels is speeding up plans for an initial public offering which could be valued at around US$ 5.0 billion. Creditors, including Mizuho Financial Group Inc., insist that founder Ritesh Agarwal pay off the dues, if the startup does not have an IPO by October. It seems that the thirty-one-year-old Indian borrowed US$ 2.2 billion in 2019, with a guarantee from backer SoftBank Group Corp.’s boss Masayoshi Son, to increase his stake in Oyo and gain more strategic control over a company he built in his teens. Three years later, the loan was restructured but Agarwal has yet to pay back the first tranche. SoftBank is its largest shareholder, with a stake of more than 40%, with Agarwal’s having more than 30%. It has fully recovered from the Covid impact and posted a small profit for the year ending 31 March 2024, as sales recovered. Late last year, Agarwal injected about US$ 95 million into Oyo, via his Singapore-based investment firm.

On Monday, Mixue Ice Cream and Tea went public on the Hong Kong bourse, having raised US$ 444 million in its IPO – their biggest listing of the year; on its début day, the Chinese bubble tea chain, with 45k outlets across China and in eleven other countries, and more outlets than McDonald’s 43k+ and Starbucks’ 40.6k, saw its shares soar more than 40%. The company, founded in 1997, sells ice creams and drinks for an average of US$ 0.82 and US$ 0.65. Unlike Starbucks, which operates more than half of its stores directly, almost all of Mixue’s outlets are run by franchisees. Recent bubble tea chains, including its smaller rival, Guming, and Chabaidao, that have gone public, have seen their market caps decline in first day trading.

Boots is going private, and will no longer be traded on New York’s Nasdaq, as it is being bought for US$ 24 million, by Sycamore Partners, a private equity firm, from Walgreens Boots Alliance; the retailer has been listed on a stock exchange for at least one hundred years. It is expected that shareholders will receive US$ 11.45 per share, with the possibility of a further US$ 3.00, if other business sale conditions are met. In 2022, a sell-off of the Boots arm of the business from the Walgreens Boots Alliance was abandoned, and the following year, it announced the closure of three hundred outlets. Boots was acquired by Walgreens in 2014, and since 2015 it has lost 90% of its market cap.

Poland-based Pepco Group confirmed it was considering the sale of  Poundland, the discount retail chain, with the owner noting that it faces an “increasingly challenging” retail landscape in the UK, and that it was examining all options for the eight hundred and twenty-five-strong chain, including a sale. Although its revenue stream came in at over US$ 2.0 billion, Pepco revealed a US$ 828 million charge to Poundland, with problems being exacerbated by the government’s hikes to employer national insurance contributions from April. Its chief executive, Stephan Borchert, confirmed, “there are definitely interested parties for this business.”

November saw the UK experiencing a shortage of Guinness; this month it is the shortage of bananas, down to bad weather conditions in supply countries such as Columbia, Costa Rica and Ecuador. Shoppers have been left disappointed after several Tesco stores ran out of bananas, one of their best-selling items. One interesting fact is that consumers buy over five million bananas a year of which 28%, 1.4 million, are wasted.

Barclays’ latest IT outages in the UK will cost the banker up to US$ 13 million in compensation payments to its customers for “inconvenience or distress”, caused by several days of disruption; this is expected to be the largest amount of compensation of any bank in the past two years.  The glitch occurred towards the end of January. The crisis happened to coincide with payday for many and the deadline for self-assessment tax returns. The Treasury Committee of MPs was told that the problem was caused by “severe degradation” in the performance of their mainframe computer, which resulted in the failure of the bank’s online payments. The committee had approached the top nine banks and building societies for their comments and outage details. It was found that, over the previous two years, there had been one hundred and fifty-eight individual IT failures, leading to eight hundred and three hours of unplanned outages. NatWest and HSBC recorded the longest outages, at one hundred and ninety-four hours and one hundred and seventy-six hours of failure.

At the week-long National People’s Congress, President Xi Jinping set a 2025 economic target growth of “around 5%”, whilst also pledging to pump billions of dollars into its ailing economy, with further weakness inevitable on the back of Trump tariffs. The Chinese administration has been impacted by a quadruple whammy of low consumption, an ongoing, (but not going away) property crisis, sticky unemployment and a further 10% Trump tariff, following a similar levy last month. Almost immediately, Chinese retaliation saw 10%-15% tariffs on certain agricultural imports from the US, and it is estimated that continuing tariffs would result in Chinese exports – which had accounted for  a nearly one trillion dollar trade surplus – declining by up to a third; it will also see it difficult for China to post a 5% growth in 2025,  (having hit that number over the past two years) and may have to drive up domestic spending to get anywhere near the target figure.

At the Congress, Chinese Premier Li Qiang said consumption has been sluggish and pledged to “vigorously boost” household demand, noting that “domestically, the foundation for China’s sustained economic recovery and growth is not strong enough.” Beijing has already rolled out schemes to encourage its people to spend more, including allowing them to trade in and replace consumer goods like kitchen appliances, cars, phones and electronic devices. It will also see the government enriching the ordinary Chinese people’s pockets, with the aim of cutting the country’s reliance on exports and investment. It will also create more than twelve million jobs in cities, setting a target for urban unemployment at around 5.5% for 2025. It also plans to issue US$ 179 billion worth of T-Bonds, to help fund its stimulus measures, and allow local governments a 12.8% hike  to US$ 605.8 billion in the amount they can borrow. Even after trying to keep its fiscal deficit – the difference between the government’s spending and revenue – at below 3.0%, it raised this by 1.0% to 4.0% of GDP, the highest level in decades.

Donald Trump may be happy to hear that a subsidiary of Hong Kong-based CK Hutchison Holding company has agreed to sell most of its stake in two key ports, located at either end of the eighty-two km Panama Canal, to a group led by US investment firm BlackRock, and including Switzerland’s Terminal Investment Limited; the sum involved is in the region of US$ 22.8 billion. The deal includes a total of forty-three ports in twenty-three countries around the world, including the two canal terminals. Over recent weeks, Trump has made several arguments for retaking control of the canal and the surrounding area, including Chinese influence being a national security threat, the fact that US investment in the initial building of the canal justifies taking back control, and that US ships are being charged too much for using the waterway. Earlier in the year, the US President had complained that the major shipping route was under Chinese control and that his country should take control of it. Although not directly owned by the Chinese government, it operates under Chinese financial laws.

Because of his relationship with that scumbag, Jeffrey Epstein, former Barclays boss Jes Staley has begun a legal bid to overturn a 2023 Financial Conduct Authority ban from the UK’s financial services industry, along with a US$ 2.3 million fine; it had concluded that Staley had made misleading statements about his relationship with the disgraced financier in correspondence with the watchdog. (He also missed out on pay and bonus awards of US$ 23 million, after he left Barclays under a cloud). The banker claims that he had a “close professional relationship” with Epstein but denies they were friends. Their association dates back to a time when Epstein was a client of JPMorgan Chase’s private bank, which Staley headed before taking the role at Barclays in 2015.; two years earlier, he had left J.P. Morgan after more than thirty years. The ban by the FCA was based on two misleading statements over their relationship, namely over how close they were and that Mr Staley’s last contact with Epstein was “well before he joined Barclays in 2015”. The FCA’s ruling related to the contents of a letter sent by the then Barclays chairman in 2019, but reviewed by him, which summarised the depth of the two men’s ties in response to a request for “assurance” from the regulator. The FCA’s case includes more than 1k emails between the pair, some provided by JPMorgan and others from Epstein’s estate, in which Staley was said to have described their friendship as “profound” and referred to Epstein as “family”. Today, JPMorgan Chase & Co. told British regulators it believed Jes Staley might have been involved in Jeffrey Epstein’s crimes, shortly before the watchdog opened a formal investigation into the former Barclays Plc boss in 2019.

Defence companies have initially benefitted from the current Ukrainian debacle, as their market caps skyrocketed on the bourses of UK and Europe in Monday’s trading. The FTS 100 hit new record highs, as arms maker BAE Systems saw its share price rise as much as 17.5%, with its market cap climbing by US$ 7.53 billion; in comparison, Rolls Royce nudged up 6.0%.  Meanwhile, on the FTSE 250, there were marked increases, of 10.3% and 9.3%, in the share values of defence technology company QinetiQ and defence support business Babcock International. On the European bourses, shares of Germany’s largest defence company Rheinmetall jumped 18% while Italy’s Leonardo was up 15%. All this came after European leaders met in London a day earlier where UK Prime Minister Starmer announced a loan to Ukraine and a US$ 2.0 billion deal for a Belfast factory to supply missiles for the country’s fight against Russia; the UK had earlier announced it would increase military spending to 2.5% of GDP. On top of that, Chancellor Rachel Reeves had also announced an extra US$ 2.88 billion for the Ukrainian war effort, courtesy of Russian funds, frozen since the start of the full-scale war in February 2022.

In February, the US economy added 151k new jobs, with a marginal 0.1% uptick in unemployment to 4.1%. Donald Trump’s government cuts were the main driver for federal employment dipping 10k last month. Hiring was driven by healthcare and financial firms, with manufacturing sector adding 10k jobs. Although the numbers were largely in line with expectations, it does point that the labour market is indeed cooling. The buoyancy of the labour market to date, with a long running growth trend, surprised many analysts especially in an environment of price increases and high interest rates. Future months, with Donald Trump pulling the strings, will prove to be interesting reading, as he noted, “I think the labour market’s going to be fantastic but it’s going to have high-paying manufacturing jobs as opposed to government jobs.”

Citing that time has run out, on Monday Donald Trump confirmed that he was moving forward to levy 25%, starting the following day, 04 March on goods imported from Canada and Mexico; an additional 10% tariff on Chinese imports is also expected to come into force. All three countries have also said they will retaliate against the US tariffs, raising the prospect of a widening trade war. Canada plans to impose retaliatory tariffs against US imports of US$ 155 billion, with the first tranche of US$ 30 billion ready immediately to be levied on everyday goods like pasta, clothing and perfume. Beijing had already prepared countermeasures, announcing that it would slap fresh tariffs on a range of agricultural imports from the US. Furthermore, the Finance Ministry confirmed that “additional 15% tariffs will be imposed on chicken, wheat, corn and cotton,” and that “additional 10% tariffs will be imposed on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products”. President Trump has also announced a 25% charge on all steel and aluminium imports, which is meant to come into effect on 12 March. In addition, he has threatened to impose custom “reciprocal” tariffs on individual countries, as well as 25% tariffs on the EU. For the time being the UK has avoided any tariffs. All three major US indexes fell on Monday – the Dow Jones Industrial Average ended the day down 1.4%, the S&P 500 1.75% and the Nasdaq 2.6%. No doubt global trade is in for a rocky ride!

If Trump’s tariffs aim is to rebuild and modernise US manufacturing, then it will take some time to see any positive results – capex items, such as new factories, could take years to build. Thus, in the short-term, the consequences will be higher consumer costs (someone has to bear the extra tariff costs), rising inflation, as prices move north, and lower economic activity, at a time when the US economy could already be in contraction. In recent weeks, high-frequency measures of activity have suggested the US economy is facing a very sharp slowdown. Indeed, the “GDPNow” Nowcast measure from the Atlanta Fed recently pointed to the US economy contracting at an annualised rate of 2.8% in Q1.

On 26 March, Rachel Reeves is set to release her spring statement and it seems that she will announce several billion pounds in spending cuts, including from the welfare budget; this move is almost inevitable so that the Chancellor can come within her borrowing limit that includes maintaining a US$ 12.90 billion (GBP 10.00 billion) headroom; the rise in borrowing costs, with inflation hitting a ten-month 3.0% high in January, has eroded this balance to almost nil. So as to maintain her self-imposed fiscal rules, she cannot borrow for day-to-day spending, leaving spending cuts as one of her only options. On Wednesday, Treasury advised the Office of Budget Responsibility of the proposed cuts, ahead of it providing a financial forecast on the same day as the spring statement. Accordingly, she will have to consider spending cuts and reports indicate that the Starmer administration will be looking at a four-point plan – welfare cuts, planning reforms, slashing red tape and reducing the number of Whitehall mandarins. To date, the Prime Minister has refused to say whether further tax rises, or spending cuts, would be imposed. The way the government finances are, the Chancellor has to reduce the amount the government borrows – but it appears that because she has already borrowed up to her limit, any further borrowing will be at the expense of having to cut benefits, not helped by worse growth than expected. Basically, for every billion of additional borrowing that the OBR thinks she is going to need, she will have to utilise spending cuts, almost certainly including welfare cuts. The fundamentals are not looking good, and now It’s Getting Serious!

Don’t Worry, Be Happy!                                                 14 February 2025

The new year saw Dubai real estate sector continuing to bubble, following a highly successful 2024, as it posted a record 180.9k transactions, valued at US$ 142.1 billion. January witnessed impressive annual increases, for both transactions and values – 23% to 14.24k and 24% to US$ 12.09 billion. January statistics from Property Finder found that 15%, 31% and 37% of people were seeking to own or invest in studios, 1 B/R and 2 B/R apartments; in the villa sector, 37% and 50% were searching for villas with 3 B/R and 4 B/R or more. The most popular areas for apartments were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay and Palm Jumeirah, whilst for villas/townhouses, Dubai Hills Estate, Palm Jumeirah, Dubai Land, Al Furjan and Damac Hills 2 were the leading five locations.

In the month, the off-plan sector accounted for 52% of total transactions – 15.0% higher compared to January 2024 – but 1.3% lower on the year, with a value of US$ 4.14 billion. Meanwhile, the existing market moved much higher, registering an annual 33.4% surge to 6.92k, and jumping 41.0% higher in value. Palm Jebel Ali continued to be the leader, with ninety-five transactions, worth US$ 463 million, with Al Yelayiss 1 a surprise second, with sales of US$ 463 million – from just US$ 28 million in January 2024.

When analysing rental trends, it was estimated that when looking at apartments 59% preferred furnished, with 39% going for unfurnished; 21% were looking for studios, 33% of tenants were searching for 1 B/R units and 33% for 2 B/R. For villas/townhouses, it was 52:42, furnished: unfurnished, with 42% of tenants looking for 3 B/R and 35% for 4 B/R+. The top areas to rent apartments in Dubai included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay and Deira, and renting villas/townhouses, Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha and Al Furjan were the five most popular locations.

Although the month saw a 4% dip in sq ft prices, to US$ 422, Dubai property values have soared by 81.2%, post Covid. January commercial property sales rose 17.9% on the year, with three hundred and sixty-three deals, valued at US$ 327 million. Land sales soared 151.2% higher, with eight hundred and eleven transactions, worth US$ 2.3 billion.

With a twenty million sq ft area available to it, one of the biggest of Asian developers, Karachi-based Bahria Town, has launched its first project in Dubai. The developer has plans to recreate a version of the fabled Blue Mosque in Istanbul, as well having, as its centrepiece, the Eiffel Tower, in Dubai South. The first off plan releases at Bahria Town should happen in Q1, with Phase 1 likely to take four years to complete. Early releases will have prime views of the two landmarks.

Dubai South is the emirate’s largest master development, encompassing an area of one hundred and forty-five sq km, focusing on the aviation and logistics sectors, with mixed-use and residential communities. It is expected that its ecosystem could offer up to 500k job opportunities, with a triple transport infrastructure connecting air, land, and sea. With the new terminal taking shape, there will be a surge in population from its current base of 25k residents and will become home to over a million people, once the airport becomes fully operational. It is expected that by 2032, the US$ 35.0 billion passenger terminal at Dubai World Central – Al Maktoum International – will fully absorb the current Dubai airport (DXB) which will be redeveloped for probably residential purposes. Dubai South will become an aerotropolis — an airport city.

Dubai’s Vantage Developments and Vittoria Group announced a strategic alliance with Venere Group, that, in April, will launch a new US$ 50 million residential tower in Jumeirah Village Circle, with the unveiling of Venere Group’s prototype Italian supercar. The one-hundred-and-forty-unit tower will have a range from apartments to penthouses, and all completely furnished with Venere Group’s Italian-made furniture; the residential tower has been designed by Milan-based architects Gandolfi e Mura.

Abdullah bin Touq Al Marri, the UAE’s Minister of Economy, has forecast a 5% to 6% growth for the national economy this year, driven by strong performance in key sectors such as technology, renewable energy, trade, financial services and infrastructure. He noted that the split between oil and non-oil is 25:75 and that in the four post-Covid years to 2024, the country’s GDP had grown by an annual average of 4.8%, with non-oil GDP growth averaging 6.2%.

At this week’s World Governments Summit 2025, Elon Musk announced the Dubai Loop project, with Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, revealing further details of the Dubai Loop project. He commented that this is “set to revolutionise transportation,” and that a Memorandum of Understanding had been signed between Dubai’s Roads and Transport Authority and Musk’s The Boring Company. The Crown Prince also added that under the MoU, “Dubai will explore the development of the seventeen-kilometre project,” and that there will be eleven stations for the tunnel which will have a capacity to transport over 20k passengers per hour”. He also concluded by saying that “Dubai’s spirit of innovation thrives on strong partnerships with global industry leaders. Under the leadership of @HHShkMohd, the city continues to redefine the future of transportation, both above and below ground, setting new benchmarks for sustainability, efficiency, and urban connectivity.”

Also at the World Government Summit, the RTA unveiled a new ‘Rail Bus’ vehicle, shaped like a capsule – 11.5 mt long and 2.65 mt wide – which will carry forty passengers per trip; it will travel at one hundred kph, with twin benefits being its cost-effectiveness and helping to smooth traffic flow.

This Sunday, 16 February, will see the Roads and Transport Authority holding its seventy-eighth public auction to offer three hundred exclusive two, three, four, and five-digit license plates for private and vintage vehicles, as well as motorcycles. The selection includes premium numbers across codes A, B, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z and the code (2) for motorcycles.   Registration opened last Monday and closed today, 14 February, with bidders having to pay a US$ 1.36k security deposit, and a non-refundable US$ 33 subscription fee. Successful bidders will need to settle their payments within ten working days after the auction concludes.

The General Civil Aviation Authority posted that the country’s civil aviation sector achieved traffic growth of 10.3%, in 2024, to 147.8 million, with air cargo growing 17.8% to 4.36 million tons. These results reflect the fact that the country is a major global hub for air transport, trade, tourism, and investment. Last year, the UAE welcomed 41.6 million inbound passengers, while 41.7 million departed, and 64.4 million transited through its airports. There was a marked increase in manpower, being 9.6k registered pilots, 35.9k cabin crew members, 4.5k engineers, 0.46k air traffic controllers, and 0.42k dispatchers. The country is home to thirty-six registered air operators, nine hundred and twenty-nine registered aircraft, including light sports aircraft. Air traffic movements reached a record of 1.03 million flights last year.

2024 proved to be a record year for DP World’s ports and terminals, as they handled 88.3 million twenty-foot equivalent units (TEUs), 8.3% higher on the year. Its global logistics have the capacity to handle more than one hundred million TEUs in seventy-eight countries. Group Chairman, Sultan Ahmed bin Sulayem, commented that, “during the last ten years we have invested more than US$ 11 billion in world-class ports and logistics infrastructure to make trade flow.”, and “we are confident that the container market will continue to grow and that we have the capacity to service it. Whatever the short-term challenges, we remain bullish on the outlook for world trade.” The global company saw impressive double digit returns from Posorja terminal in Ecuador, which posted a remarkable 87% uplift in volume, to nearly one million TEUs, with double-digit growth seen at San Antonio in Chile, Yarimca in Türkiye, Chennai in India, Callao in Peru, Antwerp in Belgium and London Gateway. DP World’s flagship Jebel Ali Port posted a 7% increase from 2023. New ports and terminals added nearly one million TEUs to the total volume, including the DP World-Evyap merger in Turkey, new operations at Dar Es Salaam Port in Tanzania and the Belawan New Container Terminal in Indonesia.

DP World’s latest US$ 80 million development in Egypt will not only enhance the country’s infrastructure but also position it as a key regional trade hub; it is scheduled for completion this June.  Its Sokhna Logistics Park, a state-of-the-art logistics hub, spans 300k sq mt, and is located in the Suez Canal Economic Zone, some ten km from Sokhna Port; it offers direct access to Greater Cairo’s key markets and major industrial zones. The park will drive efficiency, reduce logistics costs, and strengthen connectivity between Egypt, the ME, Africa, and beyond. Featuring both bonded/non-bonded warehouses, as well as office space and open cargo and container yards, it will support a range of industries, such as agriculture, pharmaceuticals, retail, automotive and textile.

The UAE tech-telco giant e& posted a 10.2% rise in 2024 revenue to US$ 16.13 billion, with strong growth across its telco and digital verticals; consolidated profit came in 4.3% higher to US$ 2.92 billion, driven by continuing growth from its UAE operations and its investments in overseas markets – its latest being a US$ 865 million deal to acquire a Serbian broadband and cable TV services provider.

Another record year for Emaar Properties, with revenues and property sales skyrocketing by 33.0% to US$ 9.67 billion and 72.0% to US$ 19.07 billion; 2024 net profit, (before tax), was up 25.0% to US$ 5.15 billion. On top of all this, Dubai’s leading developer registered a 55.0% surge in revenue backlog from property sales of US$ 29.97 billion. Over the year, it acquired 141 million sq ft of development land in a prime area in Dubai,  with a total development value of US$ 26.16 billion. In December, it announced a new 100% increase in its dividend policy, with its highest-ever proposed dividend of 100% of share capital for 2024, amounting to US$ 2.40 billion. It launched sixty-two new projects across all master plans in the UAE,  with its property development business achieving  property sales of US$ 17.8 billion – an annual 75.0% growth.

Last year Emaar Development posted a 61.0% hike in revenue to US$ 5.20 billion, with net profit before tax 20.0% higher at US$ 2.78 billion. The consolidated revenue of Emaar Properties from its property development business in the UAE, during 2024, reached US$ 6.40 billion, including Dubai Creek Harbour. Its shopping malls, retail, and leasing businesses generated US$ 1.53 billion in revenue, with an EBITDA of US$ 1.28 billion. Once again, Dubai Mall was the most visited destination worldwide, with one hundred and eleven million visitors. It also plans to add a further two hundred and forty luxury stores and dining outlets, for Dubai Mall, in a US$ 409 million investment. Emaar’s international sales, which contributed 8.0% of the Group’s revenue, topped US$ 1.12 billion, up 40.0% on the year, driven by strong performance in Egypt and India. Meanwhile, its hospitality, leisure, and entertainment division posted US1.00 billion in revenue, with Emaar’s UAE hotels averaging 79% occupancy while adding four new properties with five hundred rooms.

Although 2024 revenue nudged 1.7% higher to US$ 322 million, Al Ansari Financial Services posted an 18.1% decline in net profit, to US$ 111 million; as the remittance business market becomes even more competitive; it registered an EBITDA margin of 44.4%.  Although remittance volumes continue to grow, with expat residents making gains from a dollar surge, so do the number of competitive platforms that offer opportunities to send money. Rashed Al Ansari, Group CEO of Al Financial Services, noted that “we remain confident in our ability to navigate challenges, capitalise on emerging trends, and drive long-term value for all our stakeholders”. He is also concerned about “the disruptive practices of certain fintechs that undermine fair competition and create an uneven playing field for all industry participants” and has taken this complaint up with the regulators.

Another good year for Salik, with both revenue and net profit showing 6.1% annual increases  to US$ 697 million and US$ 316 million; the profit figure includes the extra 9.0% corporate tax, offset by the triple whammy of the introduction of two new gates, introduced in November, more cars on the road, (revenue generating trips 8.0% higher to 498.1 million),  and a 2.5% cut to 22.5%, in the concession fee being paid to the parent entity RTA which became effective on 01 April  2024. Salik operates toll locations in the city and this year introduced variable rates for users passing through depending on the time of the day.

The Dubai-listed parking services operator Parkin recorded a 7.5% hike in profits to US$ 115 million, as revenue jumped 18.6% to US$ 252 million in 2024. There is confidence that there will be even higher growth levels in 2025, when the utility initiates new premium tariffs in Q2, which will see variable rates for peak hours of 8am-10am  and from 4pm to 8pm.  

Dubai Electricity and Water Authority registered a record revenue of US$ 8.44 billion in 2024, with EBITDA, 6.2% higher at US$ 4.28 billion, and net profit after tax of US$ 1.97 billion. Q4 figures included revenue, EBITDA and net profit after tax of US$ 2.03 billion, US$ 1.08 billion and US$ 480 million. As per DEWA’s dividend policy, the utility expects to pay a minimum annual dividend of US$ 1.69 billion, in the first five years starting October 2022, with it being paid semi-annually in April and October. By year end, 17.8% of installed generation capacity was clean, with 6.62 TWh of clean power generated during the year – 7.47% higher compared to 2023 – as the clean power accounted for 11.2% of the total power generated in 2024. There was an annual 3.4% increase in its annual peak demand, compared to 2023, reaching 10.76 GW. During the year, customer accounts rose by 4.8% to 1.270 million

With 2024 revenues and profit coming in at US$ 3.98 billion, (up to 7% higher than expectations), and at US$ 681 million, (49.1% higher on the year), du will be paying out its highest ever dividend of US$ 0.147 a share, 58.8% higher compared to a year earlier. The combined fixed-line and mobile subscribers, (rising 600k to 8.9 million) now come close to ten million. There were increases recorded for both postpaid subscribers, up 10% to 1.8 million, and prepaid users, 2.9% higher at 7.1 million.

The DFM opened the week, on Monday 10 February, fifty-nine points, (1.1%), higher the previous week, gained one hundred and twenty-three points (2.3%), to close the trading week on 5,362 points by Friday 14 February 2025. Emaar Properties, US$ 0.23 higher the previous three weeks, gained US$ 0.01, closing on US$ 3.73 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.72, US$ 5.78, US$ 2.10 and US$ 0.37 and closed on US$ 0.74, US$ 5.80, US$ 2.08 and US$ 0.38. On 14 February, trading was at three hundred and one million shares, with a value of US$ one hundred and eighty-five million dollars, compared to one hundred and thirty-nine million shares, with a value of US$ one hundred and one million dollars on 07 February.

By Friday, 14 February 2025, Brent, US$ 4.06 lower (5.0%) the previous fortnight, gained US$ 0.07 to close on US$ 74.78. Gold, US$ 247 (9.4%) higher the previous four weeks, shed  US$ 17 (1.0%) to end the week’s trading at US$ 2,884 on 14 February 2025. 2,884 74.78

Speaking at the World Governments Summit, Haitham Al Ghais, Secretary-General of OPEC, estimated that the required investment, to meet the expected growth in demand over the next twenty-five years, equates to US$ 17.4 trillion, or in the region of an annual US$ 640 billion. He noted that the biggest line items, exploration and production sectors, will absorb the largest share of investments, with investments of US$ 14.2 trillion, or around US$ 525 billion annually. Lesser capital expenditure items – in refining/manufacturing and transportation/storage – are expected to see spends of US$ 1.9 trillion and US$ 1.3 trillion. According to OPEC’s World Oil Outlook (WOO) 2024, global oil demand is expected to exceed 120.1 mbd by the end 2050, an increase of 18.0 mbd from 2023’s 102.1 mbd. The split will see developing countries requiring an extra 28.0 mbd, (driven by population growth, urbanisation, and economic expansion), with demand falling 10.0 mbd in developed countries.

On the back of similar moves from rivals including Shell and Equinor, allied with a sharp 35.5% slump in 2024 profit levels, to US$ 8.9 billion, BP posted that it will “fundamentally reset” its strategy by scaling back renewable projects and increasing oil and gas production; it is expected that next week, it will scrap its 2020 target of achieving 50GW of renewables generation capacity by 2030 and half its previous US$ 10.0 billion in renewables until 2030. Even before this latest news, the energy giant had been scaling back by putting the majority of its offshore wind assets into a JV, with Japan’s Jera, to separate them from the company’s core fossil fuel business; last July, it also froze new wind projects. Human rights campaign group Global Witness noted that BP invested US$ 11.3 billion of its total annual balance of US$ 12.9 billion, in oil/gas, and the balance of US$ 1.6 billion on renewables and low carbon energy – a ratio of 87.4:12.6.

In a major cost-cutting exercise, and in a bid to simplify its structure and enable it to act faster, Chevron plans to slash its 45k workforce by as much as 20%, by the end of next year. Last month, the petro-giant indicated that it was looking to sell some of its assets and expand the use of robots in its operations, with resultant savings of up to US$ 3.0 billion. Even though it expects overall production to be 6.0% higher, over the next two years, it has slashed capex. Mark Nelson, vice chairman of Chevron Corp, said the company believed changes to the organisational structure would “improve standardisation, centralisation, efficiency and results”.

Troubled Boeing has posted that it will issue sixty-day notices of involuntary layoffs to about four hundred staff working on its Space Launch System moon rocket program, in line with revisions to NASA’s Artemis program and cost expectations. This program, which will have expensed US$ 93 billion by the end of the year, and set up during Donald Trump’s first presidential administration, represents the flagship American effort to return astronauts to the moon for the first time since the 1972 termination of NASA’s Apollo 17 mission. The latest program has had its share of setbacks, with Artemis 2 being delayed for almost a year, now planned for this September and the first planned manned moon landing delayed for some nine months to September 2026.

The original plan was to see a merger between Honda and Nissan, along with junior partner, Mitsubishi,  to take up the fight with global competitors, including those from China; the Japanese trinity would have resulted in an industry  powerhouse, valued at US$ 60.0 billion, and the world’s fourth-largest by vehicle sales after Toyota, Volkswagen and Hyundai. However, the plan has not materialised but the three companies did agree to continue their partnership on EVs. Honda was the number one in the vehicle triumvirate, followed by Nissan, still reeling from slowing sales and turmoil involving its top executives, including Carl Ghosn. The companies eventually disagreed on what role Nissan would play in the merger – equal partner or subsidiary.

Founded by Jeff Bezos in 2000, Blue Origin is planning to shelve 1.4k jobs, equating to some 10% of its current workforce; the rocket company, which has just completed the first test flight of its new Glenn rocket, has indicated that the job cuts are part of a plan to trim managerial ranks and focus resources on ramping up rocket launches. Once a leader in the field, it seems that it is now lagging behind some of its competitors, mainly Elon Musk’s SpaceX. On top of some management roles, the company will also be eliminating jobs in R&D and engineering. However, its new powerful New Glen does have some advantages over its main rival. One is  its ability to carry large and heavy payloads including satellites into space, and the other is that it is more powerful than Space X’s Falcon 9.

January saw the Food and Agriculture Organisation Food Price Index, the benchmark for world food commodity prices, dip 1.9 on the month in January, averaging 124.9 points; this was still 6.2 points higher on the year but 22.0 lower from its March 2022 peak. The index tracks monthly changes in the international prices of a set of globally traded food commodities, with an analysis of the major indices below:

Sugar Price Index      6.8 lower on the month and 18.5 on the year

                                    down to favourable weather and India resuming exports    

Oil Price Index           5.6 lower on the month and up 24.9 on the year

down to lower world prices of palm and rapeseed oils, while those for soy and sunflower oils remained stable

Meat Price Index       1.4 lower on the month

down to lower international ovine, pig and poultry meat prices outweighing an increase in bovine meat quotations

Cereal Price Index     0.3 higher on the month but 6.9 down on the year

down to a slight drop in wheat export prices while maize prices increased, partly due to lower US production and stock forecasts

All Rice Price Index   4.7 lower on the month

down to ample exportable supplies

Dairy Price Index       2.4 higher on the month and 20.4 on the year

Down to a 7.6% monthly surge in international cheese quotations, which outweighed declines in butter and milk powder prices

The latest International Monterey Fund global growth forecast remains at 3.3% this year and in 2026, before dipping to just below 3.0% for the following five years to 2031. However, its Managing Director, Kristalina Georgieva, speaking at the ninth Arab Fiscal Forum, part of the World Governments Summit 2025 preliminary day in Dubai, said that growth in the Mena will bounce back to 3.6% this year, because of a recovery in oil production and a hopeful easing of regional tensions/conflicts. She was bullish on UAE’s GDP growth indicating that “digital innovation, with AI technologies, is expected to raise UAE’s GDP significantly by 2030, and that more R&D spending will further enhance productivity.” On a global scale, it seems that inflation is decreasing to acceptable government target levels but in some countries, it seems to be nudging higher; that being the case, there could be a divergence in interest rates across countries and higher borrowing costs for emerging market and developing economies. She was also concerned about the level of global public debt, which the IMF expects to top 100% of global GDP by 2030. There is also the danger that some countries will be snared within a low-growth, high-debt scenario and that will have an impact on growth rates between emerging economies and middle-income countries, with some facing significant slowdowns, due to not only financial but also geopolitical pressures.

There is no doubt that Australia is in the middle of a severe housing crisis and one of the main reasons is affordability – in the 1990s, it took six years to afford a deposit for a mid-price house on an average income. Years ago, it was a given that a middle-class job could almost guarantee a life in middle suburbia. After years of trying to solve the affordability conundrum, the answer may be found across the Tasman. Fifteen years ago, Auckland was beset by a similar problem – housing was as unaffordable as is the current Sydney. However, a major planning turnabout saw the pace of building more than double, with a boom in townhouses and clamping spiralling rents and house prices.  It does seem that something similar could well benefit Australia.

However, the roots of the Australian problem go back to the 1980s. In the last two decades of the last century, the country’s standards of living grew enormously, side by side with surging demand for housing. Entering the housing market was made easier by government initiatives, including generous allowances for new buyers, tax relief and low interest rates. Almost simultaneously, house prices began to grow faster than incomes, so much so that from 2001 to today, house prices quadrupled while wages only doubled. What happened is that homeowners have become wealthy, and it is estimated that a sixty-year old home owner, on average, was twice as wealthy on their fiftieth birthday as on their fortieth and are wealthier again today. Home ownership rates have fallen sharply, and the portion of income spent on housing has increased. The current scenario for young Australians is that they have to start off with a large deposit, to help with a longer mortgage period, high repayments relative to income, and having to live in an increasingly more expensive rentals, whilst trying to pull in the deposit money. If all goes to plan, the move will be into a much smaller abode, further away from what would be preferred. In simple words, the problem could be solved – increase the supply; if that had happened, prices would have more than likely kept in tandem with pay rates. The slump, having started in the early 2000s, recovered a little in the 2010s but is now at historic lows.

Many consider that there is not enough land available to build more homes, especially medium-density housing in places where most people want to live, within reasonable distance from inner-city suburbs. Australia is definitely not the only country in the world where the planning system is notoriously complicated, time consuming, corrupt (in certain cases), and bureaucratic, beset by reams of rules and regulations. This is best summed up by Susan Lloyd Hurwitz, chair of the government’s housing supply and affordability council, commenting “our planning approval systems are too complex and too slow. Arrangements vary across states and territories and across the more than five hundred local governments that provide planning consent authority.”

With Japanese Prime Minister, Shigeru Ishiba, standing beside him at the White House, the US President confirmed that Nippon Steel will drop its US$ 14.9 billion bid to acquire US Steel, and that it would instead “invest heavily” in the company, without taking a majority stake. In his last days as President, Joe Biden had blocked the proposed takeover on national security grounds and that domestic ownership was important, with the Japanese calling his decision “incomprehensible”. Trump – who mistakenly referred to the firm as “Nissan” – said he would meet Nippon’s head next week to “mediate and arbitrate” the deal.  In the US, Japanese companies are the largest job creators in ten states and the second largest in another six – and the country.

The French Ministry of Economy has amended its earlier 2026 projected public debt, at 4.6%, now expecting a marginal increase to see it remain just under its 5.0% threshold. Last October, a financial plan, indicating its commitment to reduce the public debt to under 2.8% was submitted  to the EC. Late last week, the French Parliament approved the 2025 state budget in a final vote in the Senate; it included austerity measures, worth US$ 52 billion, in a bid to reduce the public deficit to 5.4% of GDP in 2025, down from the 6.0% deficit expected for 2024. The Ministry of Economy stressed that achieving this target is “essential”, noting that budget implementation will be closely monitored to ensure compliance with ministerial allocations and to take any necessary corrective measures. Additionally, the French government has revised this year’s economic growth forecast down 0.2%, to 0.9%.

Last year, Spain received a record ninety-four million visitors and is fast catching up with France’s latest one hundred million total, which makes it the world’s biggest foreign tourist hub. Spain’s surprising recent tourism spurt has also helped the national economy, (the eurozone’s fourth biggest), post the highest growth in 2024, at 3.2%, compared to Germany, France and Italy with a 0.2% contraction, 1.1% and 0.5% growth. UK’s figure was 0.9%. No wonder that ‘The Economist’ has ranked Spain as the world’s best performing economy, with the country responsible for 40% of eurozone growth last year. It is truly amazing to see Spain bounce back from the pandemic when its GDP shrank by 11% in one year. It is estimated that public spending has accounted for about 50% of Spain’s recent growth and that the modernisation process is being aided by post-pandemic recovery funds from the EU’s Next Generation programme. Spain is due to receive up to US$ 169.0 billion by 2026, making it the biggest recipient of these funds, alongside Italy. Spain is investing the money in the national rail system, low-emissions zones in towns and cities, as well as in the electric vehicle industry and subsidies for small businesses. The rise in tourism has been a major boost but other factors – including financial services, technology, and investment – have played their part.

The Spanish flea in the ointment is that the country continues to have the highest jobless rate in the EU, being almost double the bloc’s average. However, the pendulum may have begun to swing, with Q4 showing the rate fall to 10.6% – its lowest level since 2008 – whilst the number of people in employment, now stands at twenty-two million, a record high. A labour reform, encouraging job stability, is seen as a key reason for this. However, other obstacles are in the way with a possible triple whammy of Spain’s mega public debt, which is higher than the country’s annual economic output,  a mushrooming housing crisis across the nation, (with millions struggling to find affordable accommodation), and the top-heavy reliance on tourism, allied with a growing backlash from disenchanted nationals.

Critics argue that the Trump administration’s decision, to slash billions of dollars from overheads in grants for biomedical research, will stifle scientific advancements. The National Institute of Health confirmed it would cut grants for “indirect costs” related to research – such as buildings, utilities and equipment – and that “as many funds as possible go towards direct scientific research costs rather than administrative overhead.” It is hoped that the agency’s estimate that the cuts – which came into effect last Monday – would save US$ 4.0 billion, with the agency posting that it would impose a 15% cap, (half of the current average rate of 30%), the rates grant pay for indirect research. As leader of Doge, (the Department of Government Efficiency), Elon Musk has claimed that some universities were spending above that 30%, commenting “can you believe that universities, with tens of billions in endowments, were siphoning off 60% of research award money for ‘overhead’? What a rip-off!”

In January, US posted lower growth in the month, despite the unemployment rate dipping 0.1% to 4.0%, indicating a solid, if more subdued, economy with employers adding 143k jobs last month. The news comes in the same month that Donald Trump returned to a major shake-up, including cuts to government spending and the federal workforce, mass migrant deportations and higher tariffs on many goods coming into the US. Federal Reserve chairman, Jerome Powell, also said the bank’s concerns about the job market had subsided.

Mainly because of higher egg, (15% higher because of avian flu), and energy prices, along with car insurance, airfare, medicine and other basics, January US inflation, pushed up to 3.0% –  its highest rate for six months, with the news coming a week after the US central bank maintained rates, pointing to  economic uncertainty. Prices for clothing, by contrast, declined, while rents and other housing related costs increased 4.4% over the last year, marking the smallest twelve month increase since January 2022. The Fed has still not come to grips with putting inflation back into its box and now has to consider what impact other factors, such as a squeeze on labour supply growth, will have in it trying to hit their long-held 2.0% target.

President Donald Trump has said he will announce a 25% import tax on all steel and aluminium entering the US, a move that will have the biggest impact in Canada, commenting that “any steel coming into the United States is going to have a 25% tariff.”  Canada and Mexico are two of the US’s biggest steel trading partners, and Canada is the biggest supplier of aluminium metal into the US. In another announcement later in the week, he indicated that there will be reciprocal tariffs on all countries that tax imports from the US, commenting “if they charge us, we charge them.” During his first term,  (2016 – 2020), Trump put tariffs of 25% on steel imports and 10% on aluminium imports from Canada, Mexico and the EU.; within a year, an agreement with his two nearest neighbours saw tariffs ended, although the EU import taxes remained in place until 2021. China has also imposed export controls on twenty-five rare metals, some of which are key components for many electrical products and military equipment. This move by China is because of the US preventing Chinese access to semiconductor chips and many other AI developments.

There has been a lot of interest in potential buyers for The Original Factory Shop, including Mike Ashley’s Frasers Group and Poundstretcher, which is owned by the investment group Fortress. The latest is that Modella Capital, the owner of Hobbycraft, is the inside runner to buy TOFS, after discussions with Baaj Capital broke down; Modella has also been in the mix to acquire WH Smith’s high street stores. The private equity firm, Duke Street, has owned the independent discount retail chain, with some one hundred and eighty stores in the UK, since 2007. Established in 1969, TOFS sells beauty brands such as L’Oréal, the sportswear brand Adidas and DIY tools made by Black & Decker.

In true British style, Trade minister Douglas Alexander said the UK would not have “a knee-jerk reaction” but “a cool and clear-headed” response to Donald Trump’s latest renewal of steel and aluminium tariffs, at 25%, set to start on 12 March. The US is the world’s largest importer of steel, with Canada, Brazil and Mexico, as its top three suppliers, and Trump sees imposing tariffs, which will be paid by companies bringing the metal into the US, as a way of shifting away from foreign imports and boosting domestic steel production. The US is the third largest customer for UK steel, with exports totalling US$ 483 million, behind Ireland (US$ 610 million) and The Netherlands (US$ 576 million), but ahead of Sweden (US$ 476 million) and Belgium (US$ 456 million). With the US accounting for about 10% of UK’s steel market, probably the main concern would be the possibility of other steel-making countries, which refuse to trade with the US, may start dumping their excess steel in the UK. In a MAGA bid, it seems that the US president is keen to ‘level the trade playing field’ and aiming at countries and trading blocs, such as the EU, which export more to the US than they import.

Research consultancy, Indeed, has listed the ten most in-demand jobs in the UK, with the highest being for paediatricians, as vacancies increased 91% and offering a salary of around US$ 131k. Last year, listings for teachers surged 245%, with positions offering US$ 48.6k. Meanwhile, property solicitor roles have jumped by 111%, coming with an average salary of US$ 65.4k. Doctors were the seventh most in-demand profession, with job postings rising by 95%, followed by AI engineers also increasing by 86%.

Despite the UK economy being in almost negative territory, website Hitched indicates that last year, the average cost of a wedding rose 11.0% to US$ 29k, with more than 67% of couples saying their families helped pay for their weddings; only 10.0% took out loans or got new credit cards to cover costs. The knock-on effect of inflation pushed 61% of couples to increase their budgets at least once. Two of the major costs were the venue, at US$ 11k, and catering – US$ 8k.

Only a politician could answer the following question, when the Prime Minister was asked about Rachel Reeves’ CV. He replied that she has “dealt with any issues that arise”, and when asked in an interview whether he was “comfortable that she exaggerated her relevant experience”,

he replied the issues were from “many years ago” but that he and the chancellor “get up every day to… make sure that the economy in our country, which was badly damaged under the last government, is revived and we have growth, and that is felt in the pockets of working people across the country”. Rachel Reeves has frequently cited her time at the Bank of England as part of the reason that voters can trust her with the public finances and has repeatedly claimed to have spent up to 10 years there. The Chancellor left the financial institution nine months earlier than she stated in her LinkedIn profile. This means she spent five and a half years working at the bank – including nearly a year studying – despite publicly claiming to have spent a decade there. She joined HBOS in 2006 and initially claimed that she worked there as an economist but changed her profile to Retail Banking, with The Times reporting that er actual role was “running a customer relations department dealing with complaints and mortgage retention”.

In a cry for help, Chancellor Rachel Reeves met some of the leaders of UK’s high street banks, including Georges Elhedery, Debbie Crosbie, Charlie Nunn, Paul Thwaite, (of HSBC, Nationwide, Lloyds Banking Group and NatWest) plus senior representatives of Barclays and Santander UK. The main item on the agenda was to discuss Labour’s financial services growth strategy – one of the pillars of the wider industrial strategy being drawn up by ministers. She will be asking for fresh ideas from them on how best to kick start the faltering economy. The Chancellor has had so much negative press from her October budget and has been trying to kickstart economic growth since then. More bad news came her way recently, with the BoE downgrading the country’s growth forecast and there are some who think it is inevitable that she will have to raise taxes sometime this year.

With a Q4 GDP growth of 0.1%, the UK economy will not go into a technical recession until mid-year, at the earliest; a technical recession occurs following two consecutive quarters of ‘negative growth’. It appears that the Q4 ‘improvement’ only arose because of growth in Christmas spending and manufacturing during December, and follows a contraction of 0.1% in the previous quarter. Overall, last year the economy grew by 0.9%. There is no doubt that the dynamic duo of Starmer and Reeves has scored at least two own goals in their attempt to grow the economy. The first was after trash talking the economy ahead of its October budget and the second by hikes to employer National Insurance contributions from April 2025 that have impacted investment, forced job cuts, and hit pay rises. The fact is that the UK economy is in a rut and faces potential obstacles in the coming months, including the possibility of Trump tariffs, slowing growth forecast, the distinct possibility of rising inflation and the population facing water, energy and council tax rising sharply in April. Don’t Worry, Be Happy!