UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan recently extended Christmas greetings to all celebrating the holiday. Posting on social media platform X, he expressed his hope for harmony, prosperity, and goodwill during this festive season. "I wish a blessed Christmas to all those celebrating in the UAE and around the world. May the spirit of this season bring harmony, prosperity, and goodwill to you and your loved ones," Sheikh Mohamed stated.
Further extending seasonal greetings, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE, conveyed, "Congratulations to all those celebrating Christmas. Happy New Year to you all. May the world be in peace and harmony. May everyone be in goodness and prosperity." Such messages reflect the UAE leadership's commitment to promoting inclusivity and multiculturalism within the nation.
Meanwhile, gold prices experienced notable movements, with the 24K variant trading at Dh317 per gram at the opening of the Dubai markets. This marked a slight increase from the previous day's closing price of Dh316.5. Other variants, including 22K, 21K, and 18K, also saw increases, with prices at Dh293.5, Dh284, and Dh243.5 per gram, respectively.
Globally, spot gold was priced at $2,616.45 per ounce, as most markets remained closed for the Christmas holiday. Analysts attribute the recent gold price fluctuations to the US Federal Reserve’s decision to cut rates by 25 basis points and exhibit caution moving forward, indicating only two additional cuts anticipated for 2025 amid inflationary concerns. Ahmad Assiri, research strategist at Pepperstone, noted, "These developments come against a backdrop of market concerns over the pace of inflation, and expansionary fiscal policy outlook – factors lending gold solid support.”
Public protests occurred during the United Nations' COP28 climate talks, the largest demonstration seen in the UAE since the onset of the Israel-Hamas war, spotlighting environmental issues and the plight of Palestinians. A distinct feature of COP28 is the allowance for limited protests under strict regulations, primarily within the summit's 'Blue Zone'. Human Rights Watch researcher Joey Shea remarked on this dynamic, indicating the UAE’s attempt to project a favorable image internationally. “One of our major issues with COP28 is the fact the UAE government is using this to burnish its image internationally,” she stated.
The UAE has been seen as restrictive with political expressions, barring political parties and labor unions. Approximately 10% of its population are Emiratis, with many expatriates being low-paid laborers who fear risking their livelihoods by speaking out about working conditions. Yet, pre-emptively, the UN and the UAE agreed to permit expressions of free speech during COP28. During one demonstration, over 100 individuals showed solidarity for Palestinians, emphasizing the global call for action against civilian casualties.
Significantly, the UAE has emerged as Africa’s largest backer of new business projects, committing approximately $110 billion to initiatives from 2019 to 2023, outpacing investments from countries like the UK, France, and China. This investment spree predominantly focuses on renewable energy, with $72 billion pledged. Ahmed Aboudouh, of Chatham House, noted, “African countries are in dire need of this money for their own energy transitions.”
Dubai companies, including DP World and Abu Dhabi Ports, have expanded operations across Africa, including significant investments in countries such as Guinea, Egypt, and Angola. Notably, International Resource Holdings clinched a surprising $1.1 billion deal for Mopani Copper Mines. Despite these ambitions, various projects are hindered by economic factors and concerns over labor standards. A $34 billion green hydrogen project remains yet to progress beyond the memorandum stage.
Trade analysts highlight issues surrounding unaccounted gold exports, reporting $115.3 billion lost between 2012 and 2022. Moving forward, Ken Opalo from Georgetown University emphasized, “There is also the opportunity for the attention to breed criminality—like we are seeing in the gold sector.” The UAE aims to solidify its enhancement as the leading GCC investor and fourth-largest global investor within Africa, accounting for more than 21,000 African firms operating within key sectors of the economy.
Shifting to finance, Dubai’s benchmark stock index reached its highest level in over a decade,-induced primarily by investors speculating on fewer rate cuts from the U.S. Federal Reserve. The index increased by 0.1%, closing at 5,084. Emirates NBD soared approximately 1.2% and other firms similarly thrived. Conversely, Qatar’s benchmark index faced declines, marking the third consecutive session of losses with more than half of stocks trading lower.
Overall, the current economic climate reflects both opportunities and risks for the UAE, underpinned by political goodwill and notable strides within investment strategies. From the festive season's accord to the backdrop of climate protests at COP28 and substantial investments across Africa, the UAE continues to navigate and influence regional dynamics.
