UAE, 26 March, 2025 : Despite ongoing global trade tensions, the UAE economy continues to demonstrate resilience, according to Razan Hilal, Market Analyst at Forex.com.
As major central banks recalibrate monetary policies in response to trade uncertainty, the US Federal Reserve has lowered GDP growth forecasts to 1.7% and held interest rates at 4.5%. Other central banks, including Canada and Switzerland, have cut rates to shield their economies, while Japan has maintained its stance.
Hilal highlighted the UAE’s economic strength, noting a 2% rise in residential real estate values in February and a 3% rebound in the UAE MSCI index after an initial decline. Business activity remains robust, with MENA PMIs above 50, signaling expansion.
She emphasized that while the future of US-China trade relations remains uncertain, a de-escalation could further boost the UAE’s non-oil sector. Despite oil prices at three-year lows, the UAE stock market remains near record highs, reflecting successful economic diversification.
Even if trade conflicts persist, the UAE’s strong investment climate and global trade ties are expected to sustain its economic stability.
Source : www.zawya.com