Interpreting Middle East Economic News and Analyzing Market Trends

Category: UAE

Dubai property market heats up again, apartment sales rise 17% and rents are up 12% in one year. Talks revived for underwater hotel, but will it stay under water?

Source: Gulf Business

Dubai property is hot once again, both sales and rents are up double-digits over the past year.  The pace of the recent rise suggests that there is more momentum behind it, so much so that developers are considering bringing back some of their crazy projects, which were cancelled during the last downturn.  Will these projects make it this time?  How much more can Dubai property rise when the number of challenges facing the world economy keeps growing?

 

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Qatar and UAE finally get upgraded to emerging market status while Greece and Morocco go the other way

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Photo: Gulf Business

  Qatar and the UAE finally got upgraded to emerging market status by MSCI.  The move is widely celebrated in the region as the ticket to bringing in foreign institutional investors and increase liquidity in the tiny Gulf markets.  Greece, on the other hand, has gone the other way…

 

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NASDAQ Dubai looks to focus on sukuk and bond trading as equity trading never materialized

 

Launched in 2005 as the Dubai International Financial Exchange (DIFX) and rebranded in 2008, NASDAQ Dubai has struggled to get equity listings.  Of the seven equities listed today only one, DP World, trades with any significant volume.

 

Where the exhcange seems to have found a niche is in sukuk and bond trading. The exchange currently lists 12 sukuk issues and 5 bond issues.  Sukuk, of course, have gained a lot of attention lately and NASDAQ Dubai is aiming to capitalize on this.

 

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Dubai hotel offers gold-plated iPads to guests: Is this a sign of a market top?

 

 

Dubai’s Burj Al-Arab hotel, the self-proclaimed 7-star hotel is dishing out 24-carat gold plated iPads to guests.  Why?  Because it can.

 

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Abu Dhabi starts building second nuclear reactor

Tomorrow Abu Dhabi, the largest of the seven Emirates and make up the United Arab Emirates, will start construction on the second nuclear power plant.  Construction of the first nuclear plant began last July and will not be operational until 2017.

 

The push towards nuclear power is yet another sign of the growing interest among Middle East oil exporters to find ways to save their oil for export rather than burn it locally.  Power demand is growing rapidly in these countries, mainly due to the huge government subsidies, making power use spike up while the cost to the consumer remains dirt cheap.

 

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