Central banks will take centre stage this week with new stimulus measures and currency volatility poised to have a big impact on UAE stocks.
Five central banks will hold meetings to discuss policy measures, including the US Federal Reserve, which is expected to announce fresh stimulus measures to bolster the flagging economy.
That stimulus could result in pronounced gains for stocks in Dubai and Abu Dhabi, which traders said were well positioned to continue their three-month surge as western investors look for growth opportunities overseas.
"The market in Dubai hit a new high and the close of last week was fantastic," said Saad al Chalabi, an institutional trader at AlRamz Securities.
"It's a new high for this rally. It's looking very positive for the coming weeks that they were able to break that high."
Mr al Chalabi said UAE stocks could surge over the next few days, adding the Dubai Financial Market (DFM) General Index may reach as high as 1,800.
"We paused because of these earnings and now that that's out of the way, there's nothing to stop them," he said.
But markets around the world will be awaiting the outcome of the two-day Fed meeting to begin on Tuesday. Although analysts differ in their predictions of how much, if any, stimulus is expected, Goldman Sachs said in a note last week the Fed's new quantitative easing measures could amount to as much as US$2 trillion (Dh7.34tn).
UAE stocks may gain from that but the full effects of quantitative easing are harder to predict, as the stimulus may erode the value of the dollar and dollar-pegged currencies, such as the dirham.
But currency volatility is almost a certainty with the Fed, the Bank of England, the Bank of Japan, the Reserve Bank of Australia and the European Central Bank all holding meetings. The effect on currencies will be "totally unpredictable", according to Neil Mellor, the currency strategist at BNY Mellon.
"The … week is going to be extraordinary, really," Mr Mellor said. "You can look at every central bank meeting as potentially pivotal for the price action for the remainder of the year."
He said emerging markets in Asia and the Middle East might benefit more from stimulus measures than the developed markets they were designed to bolster.
"You can pump as much stimulus as you like into your economy," said Mr Mellor. "But if the banks aren't functioning as they should, it tends to go abroad."
Mr al Chalabi said stocks of companies in the UAE such as Emaar Properties, Arabtec Construction and Drake and Scull International would be the beneficiaries of a fresh round of quantitative easing.
And mid-term elections in the US take place on Tuesday and are widely expected to result in the US President Barack Obama's Democrats losing control of the House of Representatives, according to estimates by the polling website FiveThirtyEight.
A Republican victory, bringing with it renewed calls to cut the US deficit, may cause the dollar to strengthen, Mr Mellor said.
The DFM ended last week up 1.5 per cent; the Abu Dhabi Securities Exchange was down 0.1; and the Abu Dhabi Islamic Bank Index lost 0.04 per cent last week.
ghunter@thenational.ae
Bio
Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYango%20Deli%20Tech%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2022%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ERetail%20SaaS%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ESelf%20funded%0D%3Cbr%3E%3C%2Fp%3E%0A
MANDOOB
%3Cp%3EDirector%3A%20Ali%20Kalthami%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Mohammed%20Dokhei%2C%20Sarah%20Taibah%2C%20Hajar%20Alshammari%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
The specs: 2019 Jeep Wrangler
Price, base: Dh132,000
Engine: 3.6-litre V6
Gearbox: Eight-speed automatic
Power: 285hp @ 6,400rpm
Torque: 347Nm @ 4,100rpm
Fuel economy, combined: 9.6L to 10.3L / 100km
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
