Top Finance Updates

The must-know news & trends

UAE Banks Ride High - Consumer Confidence Hits 90% Milestone

Consumer confidence in UAE banks has soared to 90%, marking a significant surge from 84% in 2022, according to Abdulaziz Al-Ghurair, Chairman of the UAE Banks Federation (UBF). Speaking at a press conference hosted at Mashreq Bank’s Dubai headquarters, Al-Ghurair attributed this uptick to the sector’s unwavering evolution, highlighting customer trust as a cornerstone.?

He emphasized the UAE's ranking above the global trust index average, showcasing its adeptness in serving diverse customer segments. Al-Ghurair praised the sector's digital transformation strides, leveraging AI, blockchain, and data analytics.?

With robust financial performance, including increased profits and assets, UAE banks are adapting to fluctuating international rates while innovating digital services. Al-Ghurair forecasts a rise in personalized digital banking experiences and emphasizes the sector's commitment to sustainability and Emirati talent development. UBF, under Jamal Saleh's leadership, remains dedicated to fostering dialogue and integrity, cementing its crucial role in the sector's growth and stability.

Mineral Momentum: Global Energy Transition Market Set to Soar to $770 Billion?

The global market for energy transition minerals is on an upward trajectory, with a forecasted value of $770 billion by 2040, as the International Energy Agency (IEA) reported. This surge in demand for critical minerals like copper, lithium, nickel, cobalt, graphite, and rare earth elements underscores their pivotal role in driving the world's shift toward sustainable energy solutions.?

To meet this escalating demand, substantial investment in the mining sector is imperative, estimated at $800 billion by 2040. Despite recent price drops due to market fluctuations, the long-term outlook remains bullish, especially with clean energy applications like electric vehicles driving demand. Latin America and Indonesia are expected to lead in mining output, reflecting regional shifts in this dynamic landscape.

UAE Construction Sector Booms with $590 Billion Pipeline

Despite global challenges such as inflation and geopolitical tensions, the UAE's construction sector remains resilient, boasting a whopping $590 billion project pipeline in the regional market. This significant figure, revealed in a report by JLL, underscores the country's prominence in the MENA region, representing 15% of the total $3.9 trillion value of unawarded construction projects.?

Dubai leads the charge with a remarkable 21% year-on-year surge in sales and rental prices, witnessing the delivery of 10,000 residential units in Q1 2024 alone. Abu Dhabi follows suit, with 1,600 units delivered and 6,000 more in the pipeline for the year. Despite rising costs, the sector anticipates sustained growth, with a projected 3.8% GDP increase in 2024 and promising prospects for the future.

The Finance Arena: Dubai vs. Abu Dhabi

The finance landscape in the UAE is witnessing a captivating duel between its two powerhouses, Dubai and Abu Dhabi. While historically overshadowed by global financial giants like London and New York, these Emirati cities are rapidly rising in prominence. Dubai's pioneering Dubai International Finance Centre (DIFC) and Abu Dhabi's emerging Abu Dhabi Global Market (ADGM) are reshaping the region's financial landscape.?

Each city offers unique advantages, attracting diverse demographics. Dubai's vibrant atmosphere appeals to young professionals, while Abu Dhabi provides a serene family-friendly environment. Despite their differences, both cities boast generous benefits for expats, fostering a competitive talent market. As Saudi Arabia emerges as a formidable contender, the UAE remains a compelling destination for global finance, offering stability, innovation, and unparalleled opportunities.

UAE's Corporate Tax Sparks Economic Transformation

The UAE Ministry of Finance (MoF) has unveiled a forward-looking fiscal policy by implementing a federal corporate tax to fortify the nation's economic sustainability and prosperity. This strategic shift, outlined in Federal Decree-Law No. (47) of 2022, adheres to international tax standards, enhancing the UAE's position as a competitive global financial center. The tax framework spans free zones, integral to the UAE's economic diversity and international allure, fostering capital mobility and business expansion.?

With a tiered tax structure introduced in June 2023, the UAE ensures a globally competitive environment with a 0 percent tax rate for transactions within free zones. The MoF's meticulous approach, bolstered by extensive benchmarking and digital consultations, underscores its commitment to sustainable economic growth and fiscal transparency.