Good morning, friends. We’re nearly at the end of what felt like a long week — and we have a nice, brisk (albeit macro-heavy) issue to get you through the final push. We have a new growth estimate for the UAE’s GDP this year from Fitch’s BMI, while the Central Bank of the UAE said GDP grew 4% last year. Plus: We have fresh data on the number of projects awarded last year (falling 9.5%) and on Dubai’s real estate boom in 2024.

BUT FIRST- The Central Bank of the UAE kept interest rates unchanged in line with the US Federal Reserve’s move in its meeting yesterday, according to a statement (pdf). The base rate applicable to the overnight deposit facility was held at 4.4%, while the interest rate applicable to borrowing short-term liquidity from the CBUAE was kept at 50 bps above the base rate for all standing credit facilities. We have more on the Fed’s decision in Planet Finance, below.

ALSO- The UAE dominated this year’s ranking of Mena’s 50 Best Restaurants, securing 22 spots. Dubai received the most spots of any city on the list with 19 entries, led by Orfali Bros Bistro once again at the number one spot, Trèsind Studio as runner up, and Kinoya coming in third. Abu Dhabi had three entries on the list, with Marmellata Bakery at #29, LPM at #38, and Niri at #50. You can check out the full ranking here to see if your favorite made the list.

☁️WEATHER- Possibly rainy day ahead: The National Center of Meteorology forecasts (pdf) partly cloudy conditions, with a chance of light rainfall in northern and eastern areas. Temperatures today will hit 24°C in Dubai, with an overnight low of 19°C, and 22°C in Abu Dhabi, before cooling to an overnight low of 19°C.

WATCH THIS SPACE-

#1- Dubai’s RTA launches tender to develop e-bikes’ battery charging and swapping stations: Investors can now enroll in a tender launched by Dubai’s Roads and Transport Authority (RTA) for the construction of battery charging and swapping stations for electric bikes operating in the delivery sector, the authority said in a statement. The move aims to incentivize delivery companies to add more e-bikes to their fleets. Dubai currently has over 40k e-bikes in operation.

ICYMI- Both Flyby and Enoc partnered with Drive Terra last month to set up battery-swapping stations for e-bikes and e-scooters.

#2- Some 62 hotels (16.7k rooms) are currently under construction in the UAE, KhaleejTimes reports, citing data from US-based real estate analytics company CoStar. Meanwhile, 38 hotels (9k rooms) are in the planning phase, with an additional seven hotels (1.3k rooms) in final planning, CoStar said. In 2024, the country added 25 new hotels with 4.9k rooms.

IN CONTEXT- The rise in hospitality developments comes as the country aims to raise the tourism sector's contribution to the GDP to AED 450 bn and attract 40 mn guests to its hotels under the National Tourism Strategy 2031.

#3- Mubadala-owned Spanish oil player Moeve is moving ahead with its flagship green hydrogen project, after Spain opted not to extend an energy windfall tax that had stalled investments, CEO Maarten Wetselaar told Reuters. The company, formerly known as Cepsa, plans to invest up to EUR 8 bn in low-carbon energy, with its first 400 MW hydrogen plant in Huelva set for completion by 2027 and a 2 GW target for 2030. Wetselaar called the tax decision a “responsible” move that will encourage industry investment.

Moeve likes Europe for investment: “We continue to see the south of Spain as the best place in Europe to make green hydrogen,” Wetselaar added, citing strong demand from Europe as it moves away from Russian energy imports. The region has a broader target to produce 10 mn metric tons of renewable hydrogen by 2030.

DATA POINT-

The GCC’s total trade volume is projected to reach USD 2.3 tn by 2033, growing at an average annual rate of 5.5%, Boston Consulting Group (BCG) estimates, according to a press release. Meanwhile, the bloc’s non-oil trade is expected to expand at 3.5% annually, backed by strong economic diversification efforts, the US consulting firm added.

China + Japan main forces behind GCC trade growth: BCG pegs China as the biggest trading partner at an estimated USD 88 bn, a 5.7% CAGR, right above Japan at an estimated USD 46 bn (9.4% CAGR). The GCC is also well-positioned to capitalize on the rising influence of the Global South as trade between developing nations is projected to grow by USD 673 bn by 2033, the group said.

What more can the GCC do to build trade resilience? BCG urged GCC businesses to diversify supply chain sources, enhance geopolitical capabilities, and expand into high-growth markets like India and China.

HAPPENING TODAY-

#1- Arab Health — which has rebranded to World Health Expo — is on its fourth and final day at the Dubai World Trade Center. The annual healthcare exhibit gathers over 3.8k companies, with the goal of showcasing the latest tech solutions to challenges in the healthcare sector.

#2- Jewelsof Emirates Show is running at Expo Center Sharjah until Sunday. The annual jewelry exhibition features 160 exhibitors and over 500 brands, showcasing diamonds, gold, silver, pearls, and luxury watches from local and international designers. Collections come from countries like UAE, Qatar, Saudi Arabia, Lebanon, Italy, Thailand.

#3- The ShipTek International Conference wraps up in Dubai today after kicking off yesterday. The two-day event brings together industry heavyweights—including Hapag-Lloyd MD Carolin Stumm, Adani Ports CEO Nicolai Friis, and others—to talk maritime tech and industry developments.

THE BIG STORY ABROAD-

AI is on everyone’s minds this morning after Meta and Microsoft reported their earnings for 2024, and as the DeepSeek craze continues.

#1- Meta’s shares rebounded on CEO Mark Zuckerberg’s comments that Meta AI will become the most widely used AI in the industry this year, despite the company giving a disappointing sales forecast that had weighed on the stock earlier. The question now is again whether the company’s AI investments will pay off — especially after Chinese AI startup DeepSeek proved it is possible to create an AI model with a fraction of the cost. (Bloomberg | CNBC)

Speaking of DeepSeek, OpenAI said it has found evidence that the Chinese AI startup used its proprietary models to train its own large-language model, according to the Financial Times. Meanwhile, US President Donald Trump is looking at ways to further curb chip exports from Nvidia to China, Bloomberg reports.

#2- Microsoft’s shares tumbled 5% in afterhours trading after the tech giant reported slower growth than expected for its cloud business, despite the company beating revenue estimates. (Wall Street Journal | Barron’s)

In other earnings news, Tesla’s shares also rebounded on an optimistic forecast for growth in 2025, despite missing estimates for the fourth quarter of 2024. (Bloomberg | CNN)

OVER IN THE US, the White House revoked its freeze of federal aid due to legal challenges, though the administration still plans to cut spending to programs opposed by Trump. (Reuters)

AND IN SYRIA- The Syrian rebel group that ousted Bashar al Assad named its leader Ahmed Al Sharaa as the country’s new president for a transitional period, after the group dissolved the parliament, the military, and constitution. (Bloomberg | New York Times | AP)

ALSO- Former US Senator Bob Menendez was sentenced to 11 years in prison after being found guilty in a corruption case that saw him act as a foreign agent for Egypt. (FT)

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq. Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA climate and logistics industries?

***

CIRCLE YOUR CALENDAR-

The UAE-Kuwait Week will take place between 3-4 February in Dubai, featuring investment conferences, panel discussions on economic development, and B2B meetings. Attendees will explore opportunities for collaboration in emerging industries, Wam reports.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Tags: