Qatar Wealth Fund Invests $1 Billion in Ambani’s Retail Arm, Russia’s Top Miner Nornickel Plans to Move Some Trading to Dubai, Washington’s Top Middle Eastern Allies Move Closer to China.
UAE Sees Ties With West Unbroken After Invitation From BRICS
Key Takeaways
The United Arab Emirates’ membership in the BRICS bloc will not harm its relations with western nations, as the country aims to strengthen trade ties and contribute more capital to the New Development Bank.
The UAE’s inclusion in BRICS provides an opportunity for the country, with its significant sovereign wealth capital, to boost the financial capacity of the BRICS bank and support development projects in emerging markets.
While the UAE continues to prioritize trade with the West, it is also focusing on expanding commerce with countries in the Global South, emphasizing the importance of peace, prosperity, and economic growth for the region.
Dubai’s Property Boom Is Starting to Lure Chinese Buyers Back
Key Takeaways
Chinese investors are gradually returning to Dubai’s real estate market, which could help boost demand and stabilize property prices.
Russians remain strong buyers in Dubai’s property market, with Emaar developments being particularly popular among them.
The easing of Covid restrictions in China is expected to lead to a resurgence of Chinese demand for Dubai’s real estate, providing additional support and potential sales growth for Emaar.
Qatar Wealth Fund Invests $1 Billion in Ambani’s Retail Arm
Key Takeaways
Qatar’s sovereign wealth fund has invested $1 billion in India’s Reliance Retail Ventures as the company aims to expand and compete with global retail giants like Amazon and Walmart.
This investment comes as Reliance Retail considers a public listing and undertakes acquisitions to challenge competitors in India’s highly competitive retail sector.
Qatar Investment Authority’s investment is a strong endorsement of India’s economy and Reliance’s retail business, and marks their latest foray into family-led Indian conglomerates.
Russia’s Top Miner Nornickel Plans to Move Some Trading to Dubai
Key Takeaways
MMC Norilsk Nickel has established an office in Dubai, making it the largest Russian metals and mining firm to set up in the UAE since the conflict in Ukraine.
The UAE has become a popular destination for Russian businesses seeking a haven from sanctions, leading to an influx of Russian entities and expats into the country.
Norilsk Nickel, while not subject to sanctions itself, has still faced disruptions in logistics, insurance, banking, and shipping, forcing it to redirect sales to Asia.
Washington’s Top Middle Eastern Allies Move Closer to China
Key Takeaways
Saudi Arabia, the United Arab Emirates, and Egypt’s invitation to join the BRICS grouping signals their desire to strengthen their status as midsized powers and pursue a more independent path in global affairs.
The expansion of the BRICS bloc, including major Middle Eastern powers, highlights the potential challenge to the dominance of the US dollar in energy trading and the desire for greater currency diversification.
The decision by Middle Eastern allies to align with China and Russia reflects their contingency planning for potential deteriorating relations with the US and their focus on building strong economic partnerships for their own development.
BRICS Bloc Grows Heft With Saudi Arabia and Other Mideast Powers
Key Takeaways
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, is expanding to include Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the United Arab Emirates, aiming to enhance its global influence and economic clout.
The expansion of BRICS could lead to a shift in the global economy and a greater say for the alliance in world affairs, potentially challenging the dominance of the Group of Seven nations.
The push for expansion is driven by China, with concerns from India and Brazil, while the inclusion of Saudi Arabia and Iran reflects their aspirations for global leadership and cooperation with emerging market nations.
World’s Busiest International Airport Sees China Rebound Lifting Passenger Numbers
Key Takeaways
Dubai International Airport is expecting a rebound in air traffic from China in the fourth quarter, prompting the need to enhance capacity.
The airport has already surpassed pre-pandemic arrival numbers, with a 49% increase in passenger traffic during the first half of 2023.
The resilience of Dubai’s aviation sector, marked by increased demand for long-haul travel and record tourist arrivals, has sparked speculation about a potential IPO for the airport.
Egypt Stocks Hit Record High as Investors Seek Inflation Offset
Key Takeaways
Egypt’s benchmark stock index has reached a record high as investors seek protection against inflation caused by currency devaluations and the fallout from the Ukraine crisis.
The stock market in Egypt has become a safe haven for investors due to supply issues related to the conflict and multiple devaluations of the Egyptian pound.
The anticipation of another devaluation in Egypt is dependent on the government’s ability to secure foreign-currency buffers and successfully address import backlogs through state-asset sales.
For Global Oil Markets, a US-Iran Deal Is Already Happening
Key Takeaways
The US and Iran have reached informal agreements on oil flows, leading to a surge in Iranian oil production and exports, which is helping to moderate oil prices.
While a full revival of the 2015 nuclear agreement is unlikely, the two countries have made progress on prisoner exchanges and the transfer of frozen Iranian oil revenue, indicating a tentative detente.
China has become the main buyer of Iranian oil, taking advantage of discounted prices and filling its strategic reserves, but the sustainability of Iranian exports depends on China’s demand and logistical challenges.