Business Advisory Services

 Morning Bid: Fed Faces Tougher Policy Road Ahead The U.S. Federal Reserve’s task became more complicated yesterday. Revised data showed second-quarter GDP growth at 3.8% , the fastest pace since Q3 2023. Shortly after, President Donald Trump announced a new round of tariffs — including 100% duties on branded pharmaceuticals and 25% tariffs on heavy-duty trucks . While details remain uncertain and exemptions are likely, the mix of resilient economic growth and renewed inflationary pressure has tempered expectations for aggressive monetary easing. Markets, which had priced in an 80% probability of a 50-basis-point rate cut by December , now see that likelihood at closer to 60% . Attention is turning to today’s release of PCE inflation data . Even if rates continue to decline, political uncertainty, fiscal imbalances, and inflation fears could push long-term yields higher. That, according to Joachim Klement of Panmure Liberum , could weigh on the ongoing AI investment boom. This ...

UAE Central Bank raises economic growth forecast for 2025 The UAE Central Bank has raised its 2025 economic growth forecast to 4.9% , up from the earlier estimate of 4.4%, citing strong momentum in non-oil activity. The economy is now expected to expand further by 5.3% in 2026 , according to the regulator’s latest Quarterly Economic Review . Q1 Performance In the first quarter of 2025, the UAE economy grew 3.9% year-on-year . Non-oil GDP surged 5.3% , supported by solid growth across manufacturing, financial services, construction, and real estate . Overall GDP for the quarter reached Dh455 billion , with non-oil output contributing Dh352 billion —over 77% of total real GDP. Role of Oil & Opec+ The Central Bank noted that the revised outlook is also underpinned by “anticipated strong momentum in non-hydrocarbon activities” alongside a robust recovery in the hydrocarbon sector , driven by updated Opec+ production plans. Oil-related activities accounted for 22.7% of GDP in Q1 ...

 Emaar Eyes Global Expansion Through Acquisitions Dubai’s real estate giant Emaar Properties is setting its sights on international growth, with founder and managing director Mohamed Alabbar confirming that the company is actively exploring mergers and acquisitions in “big countries” such as the US, India, China, and Europe . Backed by a surge in Dubai’s property market — which drove net profit before tax up 25% to AED 18.9 billion ($5.1 billion) in 2024 and a further 34% growth in the first half of 2025 — Emaar is now considering global expansion to sustain its momentum. Alabbar noted that while Emaar has previously operated subsidiaries abroad, a buy-over strategy could prove more effective than building businesses from scratch. With a low debt profile and strong balance sheet, the company is well-positioned to leverage equity and debt financing for international acquisitions. Quoting Alabbar: “Emaar is strong in the UAE, but perhaps the local market is becoming too small...

Chinese Entrepreneurs Eye the Middle East as Their Next Growth Frontier Chinese Firms Deepen Roots in the Gulf With High-Tech Expansion A growing number of Chinese companies are moving beyond representative offices and establishing fully operational entities across the Gulf. This marks a shift from tentative exploration to long-term strategic engagement, as firms position themselves to capture deeper access to regional markets. The strongest momentum is in artificial intelligence, renewable energy, digital technologies, and biopharmaceuticals —sectors that align closely with Gulf governments’ economic diversification agendas. These industries are receiving heightened policy support, making them attractive entry points for international players. Executives highlight the region’s dual appeal of capital availability and market scale . “Saudi Arabia and the UAE are not only growth hubs, but also gateways to broader regional opportunities,” noted one company leader. Analysts view this wave ...

Oil Prices Hold Strong Despite Oversupply Concerns Brent crude oil prices have remained firmly above 65 US dollars per barrel this week, supported by strong Chinese demand and continued strategic stockpiling. The resilience of prices comes at a time when global markets are weighing the risks of oversupply against ongoing geopolitical uncertainty and shifting demand patterns. China has been steadily increasing crude imports to reinforce its national reserves, a move that has offered crucial support to global prices. This consistent demand has helped offset weaker consumption trends in advanced economies, particularly in Europe, where slowing industrial activity and cautious consumer spending are tempering energy requirements. At the same time, major oil producers are expanding supply. The United States is maintaining elevated shale production levels, while the Organization of the Petroleum Exporting Countries (OPEC) and its allies have signaled plans to ease some output restrictions....