UAE Consumer Confidence Remains High

If the consumer confidence in one's country remain strong and could not be affected with the crisis, be it political or economical, this only goes to show that its development is strong. This case applies to UAE as it has been experiencing high consumer confidence despite severe economic turmoil around the world. In fact, UAE is among the world's top five when it comes to consumer confidence.

UAE residents are the world's fifth most confident about the economic prospects in the next 12 months, according to the latest Nielsen global Online Consumer Confidence and Opinion Survey.

Piyush Mathur, regional managing director of research organisation The Nielsen Company, said the UAE's consumer confidence index has actually dropped two points from 113 in the second half of 2007 to 111 in the second half of this year.

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UAE Stock Markets Still Attractive in the Next Half Year

Still good news for the UAE stock markets! Its stock markets are looking attractive for investors in the coming next half year as research recorded a positive outlook for its stock markets. Would this mean triple investments for UAE?


Valuations in the UAE are looking attractive as Western institutional investors have begun re-entering the market. "This trend is expected to continue," the report said and added "we see potential for Dubai to outperform against Abu Dhabi in the second half of 2008, assuming positive earnings delivery for Emaar and du".

The UAE stock markets are likely to drift sideways until the second quarter of 2008 results season approaches without any near-term triggers. The positive trend in Western institutional and long-term investor inflows should provide a floor to current levels and may even provide a modest uplift.
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UAE Stocks Weak Scenarios

It is indeed an unusual trading trend for UAE, as it is not usually happen to its bourses. In Dubai alone, out of 25 traded stocks, only 11 advanced, 7 remained in its position while a total of 7 declined. Those 7 declined was the saddest part for the Dubai index, which pushes a weak sentiments for UAE traders and investors. Would this weak sentiments not affect UAE economy?

Banks, utilities and real estate stocks climbed to aid Dubai's recovery. Emirates NBD, the largest bank in the Gulf in terms of assets, advanced 2.1 per cent to Dh11.95, Tamweel edged up 1.4 per cent to Dh8 and Amlak was up 0.8 per cent to close at Dh4.90. Emaar, the biggest Arab real estate developer, remained unchanged at Dh11.30. However, Union Properties, after a decline a day before, turned around to post a gain of 0.4 per cent to Dh5.09.

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Banks May Suffer Real Estate Heat

UAE banks can gradually feel the heat of the possible medium-term risks, brought out by the increasing share of real estate assets , along with the rising inflation. In addition, a real estate shortage of supply and the low interest rate environment is now pushing for a cycle of asset price increases.

The unprecedented growth in real estate prices has encouraged the practice of using personal loans to purchase off-plan properties for a small down-payment and ride the wave of the price appreciation powered by leveraged returns.

This exposure is hard to separate from the personal loans numbers reported from the banks and could be an additional exposure to the real estate sector.

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Abu Dhabi's non-oil exports worth a billion dollar

United Arab Emirates, specifically Abu Dhabi has reached one billion dollar of earnings for non-oil exports alone. UAE is known for its oil-related earnings, yet, it has also showed strength on its non oil exports profits, which is a sign of its economic stability. Its an indication that the region can economically survive even with the absence of its oil-related profits.



"The report highlights the open economy in Abu Dhabi following the direction provided by Sheikh Khalifa Bin Zayed Al Nahyan, UAE president and Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohammed Bin Zayed Al Nahyan. As an organization, we are fully prepared to play a key role in increasing the Emirate's revenues by energising bi-lateral trade with our partners," said Abu Dhabi Customs Administration vice-director Saeed Ahmed Al Muhairi.
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GCC Stocks Recover in April

After enduring stocks volatility for past months, GCC stock markets are now recovering, particularly this April. Will the recovery continues? Lets Find out.

With oil prices likely to remain relatively high over the next few years, the country’s economic boom looks set to continue in the near term. Oil is likely to play a crucial role in UAE’s growth in the next few years. However, non-oil GDP is likely to dominate overall growth in real and nominal terms with private sector playing a bigger role in future helped by surge in oil prices that has boosted the oil earnings and helped to underpin public investment and private confidence. Going forward, the government’s main challenges include pushing ahead with diversification into more labor intensive activities, and leverage the Emirate’s strong hydrocarbon sector to stimulate and support broader economic growth.
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