Here’s what you need to know in UAE business and globally on this Monday morning.
• Sterling takes a pounding
It’s all Brexit, Brexit, Brexit this week, and while some are looking on concerned, there are many UK expatriates in the UAE rubbing their hands together as the sterling tumbles. “British expatriates in the UAE and GCC region are taking advantage of the weakening pound, and are remitting money home at very favourable exchange rates,” said Sudhesh Giriyan, chief operating officer of Xpress Money. The pound slipped another 2 per cent to $1.3403 as of 12.58pm Tokyo time, extending Friday’s 8.1 per cent plunge.
• Oil joins the slide
After slumping 5 per cent on Friday, oil prices fell again this morning. The US benchmark West Texas Intermediate fell 26 cents, or 0.55 per cent, to $47.38 and Brent shed 15 cents, or 0.15 per cent, to $48.26. Both contracts have tumbled almost 10 per cent from their 2016 highs touched earlier this month. “While the oil market fundamentals will ensure no major drop in the price of crude, as the UK accounts for less than two per cent of global demand, the oil markets are likely to remain under pressure until the volatility in the financial markets comes down,” EY Services oil and gas analyst Sanjeev Gupta told AFP.
• UAE stock markets
With the global picture so grim, it came as no surprise to see the Dubai Financial Market and Abu Dhabi Securities Exchange General Index caught up in the turmoil yesterday. The Dubai index fell by 4.7 per cent in early trading, before regaining ground to finish 3.2 per cent lower at 3,258.17, its steepest one-day fall since January. Abu Dhabi closed 1.8 per cent lower.
• Dubai to stay strong
Despite the low oil price and an expected easing this year, economists have once again backed Dubai to experience healthy growth in the run up to Expo 2020. Alp Eke, the senior economist at NBAD, said this year's expected easing is "mainly because of a slowdown in construction and real estate". He said: "The drop in growth is negligible, because Dubai will not be severely impacted by the decline in oil prices." Read the full story here
• Governance in focus
If you haven't already, take a look at our special report on governance in the UAE. Is corporate governance correctly carried out in your workplace? Have you say on the topic in our poll here.
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