The 4th Quarterly Economic Review has been released by the Central Bank of the United Arab Emirates (CBUAE), which predicts that the country’s real GDP growth will expand by 4.3% in 2024. The report highlights that the UAE’s economy has remained strong, with high growth for three-quarters of the year, thanks to both the oil and non-oil sectors. The non-oil sector is estimated to have grown at a similar pace in Q4 2022, with non-oil GDP growth projected to be 6.6% for 2022, driven by the real estate, construction, and manufacturing sectors.

 The report also indicates that the CPI inflation increased by 4.6% in Q4 2022, with a projected decrease to 3.2% in 2023 and 2.8% in 2024. In addition, the CBUAE and Reserve Bank of India have signed an MoU to collaborate on fintech, including Central Bank Digital Currencies (CBDCs) and interoperability.

A customs agreement has been signed in Jerusalem between the United Arab Emirates (UAE) and Israel, enabling the UAE-Israel Comprehensive Economic Partnership Agreement (CEPA) to become effective. The UAE Ambassador to Israel, Mohamed Al Khaja, and Israel’s Minister of Foreign Affairs, Eli Cohen, signed the agreement in the presence of Prime Minister Benjamin Netanyahu. The agreement aims to facilitate mutual assistance in the proper application of customs laws, the assessment of customs and tax fees, the adjustment of customs data, and the prevention and investigation of customs violations.

 The UAE-Israel CEPA is expected to significantly increase the non-oil bilateral trade volume between the two countries, offering economic benefits by lowering or eliminating tariffs on more than 96% of tariff lines and enhancing market access for exporters. The UAE has also signed CEPA agreements with other countries such as India, Indonesia, and Georgia, with the aim of boosting the national economy.

Cathie Wood, the CEO of Ark Investment Management, believes that Bitcoin’s performance during the current crisis will attract more institutions. Despite facing challenges such as regulatory crackdowns and bankruptcies, the digital asset market has gained about $390bn in 2023 after experiencing a $1.5tn decline last year. While the rally has slowed down, analysts remain optimistic about its future gains. 

Bitcoin has experienced a 70% increase since the beginning of the year, and technical studies suggest that it could reach a price objective of $35,000. The recent increase in the Federal Reserve’s balance sheet has also positively impacted Bitcoin and other risk assets. Though a temporary pullback may occur, experts suggest that Bitcoin could experience a long-term breakout soon.

According to fDi Intelligence’s latest foreign direct investment (FDI) data, Dubai’s DP World has invested more than $10bn (Dhs37.3bn) in the global logistics sector since 2012, placing it among the top five overseas investors in this area. The state-owned ports operator ranked fifth in the world in 2022 by the total value of direct investments allocated to the overseas logistics services sector. The only company in the top five based outside of the US and Europe, DP World’s investments in 2022 totalled $320m despite a fall in demand for logistics services due to a slowing global economy, supply chain crunch, and geopolitical tensions. In 2023, the global logistics industry is expected to record single-digit growth.

DP World’s global investments are diverse, with the company prioritizing the broadening of its partnerships to unlock global trade opportunities. DP World has enhanced its relationship with India’s National Infrastructure Investment Fund to raise as much as $300m and created a new investment platform with the British development finance agency CDC Group to drive investment in Africa. DP World expects about $1.7bn in capital expenditure this year to be invested in the UAE, Jeddah, London Gateway, Dakar, the Democratic Republic of the Congo’s Banana port, Peru’s Callao, and DPW Logistics in South Africa. The company and the Somaliland government opened the new Berbera Economic Zone, which, along with Berbera Port, is expected to develop the area into a major trade hub serving the Horn of Africa. The UK has been a key destination for investments, with DP World investing $2.4bn in the country over the past decade, supporting thousands of jobs. The logistics major has earmarked a further $1.2bn of investment in the UK over the next decade.

DP World’s annual revenues surged by nearly 60 per cent to Dhs62.9bn in 2022 from Dhs23.3bn a year earlier, driven by acquisitions and the solid performance of its ports and terminals and marine services. Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said, “The data shared by fDi Intelligence demonstrates where we stand globally within the logistics sector, not only in the last year but consistently over the last 10 years. Investing in developing economies helps trade go further, facilitates economic growth, attracts foreign investment and generates thousands of jobs—raising the quality of life for everyone.

Standard Chartered Bank has agreed to sell its corporate, commercial, institutional, consumer, private and business banking businesses in Jordan to Arab Jordan Investment Bank (AJIB), following the approval of the Central Bank of Jordan. All of Standard Chartered Bank Jordan’s employees will also be transferred to AJIB. The two banks will work closely to ensure a seamless transition for their clients and staff. 

The purchase supports AJIB’s strategy to grow its market share in Jordan, following its acquisition of HSBC’s banking business in Jordan in 2014 and the National Bank of Kuwait’s banking business in Jordan in 2022. The transaction aligns with Standard Chartered’s global strategy to reduce complexity and redirect resources within the Africa and Middle East region. Sunil Kaushal, regional CEO of Standard Chartered Bank in Africa and the Middle East, said the agreement with AJIB will allow the bank to leverage on their track record of previous acquisitions to meet the financial needs of its clients.