{"id":102464,"date":"2025-04-10T00:00:00","date_gmt":"2025-04-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-dubai-is-now-among-the-20-wealthiest-cities-in-the-world\/"},"modified":"2025-04-10T00:00:00","modified_gmt":"2025-04-10T00:00:00","slug":"this-morning-dubai-is-now-among-the-20-wealthiest-cities-in-the-world","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/04\/10\/this-morning-dubai-is-now-among-the-20-wealthiest-cities-in-the-world\/","title":{"rendered":"THIS MORNING: Dubai is now among the 20 wealthiest cities in the world"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>It\u2019s another big day for global markets, and a relatively slow day on the domestic front. The big story of the day is still how US President Donald Trump\u2019s tariffs will impact us here at home \u2014 plus a handful of M&A updates and an earnings report from Masdar\u2026<\/p>\n

BUT FIRST- We here at EnterpriseAM World Headquarters have put our heads together and humbly offer a handful of thoughts<\/strong> in the hope that they might help you clear your heads as we near the end of the week. The rundown:<\/p>\n

That feeling you\u2019ve got? The one perhaps best described as \u201cwhiplash\u201d? It\u2019s the new <\/strong>normal <\/strong>\u2014 maybe for the next few months, perhaps for the coming 3.7 years of the Trump administration. <\/p>\n

Things are so volatile that even watching the VIX will give you motion sickness. <\/strong>The VIX, or the so-called \u201cfear index\u201d that tracks expected 30-day volatility in the S&P 500, broke north of 52 earlier this week. It stayed there through much of yesterday before plunging to the 33 level by the close of trading in New York as traders welcomed Trump\u2019s social media post that most countries (with the exception of China) would face only a new 10% baseline tariff for the next 90 days<\/strong>. Most other \u201creciprocal tariffs\u201d on most countries are now on pause.<\/p>\n

In context: <\/strong>The last time the VIX was this high was during covid, when it hit 65. It was at 70 in October 2018 (at the height of the global financial crisis) and 42 during the dotcom meltdown. <\/p>\n

So, if volatility is the new normal, how should we feel about business, markets, and the economy<\/strong> in the days and weeks ahead? Here are some thoughts from Dubai, where we\u2019ve spent the week speaking with business leaders from Egypt, the UAE, and Saudi Arabia as well as global fund and portfolio managers. <\/p>\n

#1- Get comfortable with being uncomfortable. <\/strong>Volatility could be on the menu for years to come (for at least the duration of the Trump administration). Periods of calm punctuated by a punch to the head could be the new normal. Then again, ours is an adaptable specie: As our friend Mostafa Gad, the global head of IB at EFG Hermes, put it earlier this week, \u201cMarkets adapt faster today than they did in the 1980s or 1990s \u2014 they have a way of equilibrating and accepting change or adapting to crisis really quickly. What would have once taken 18 months to pass through now takes weeks.\u201d <\/p>\n

None of us in this part of the world like volatility. <\/strong>In the GCC, we\u2019re accustomed to pegged exchange rates and (for the most part) slow-but-steady policy formulation. In Egypt, we think of every 1 piaster change in the USD exchange rate as a harbinger of disaster. We need to adapt: Volatility in the USD:EGP exchange rate is a sign the CBE\u2019s FX policy is operating as intended. And a more nimble approach to policymaking in the Gulf will be the order of the day. <\/p>\n

#2- From tech to airlines and beyond, there\u2019s a healthy pipeline of IPOs ready for <\/strong>execution in Saudi and the UAE. <\/strong>Expect most to take a \u201cwait and see\u201d attitude for the coming week or 10 days. If the 90-day pause in tariffs helps stabilize global equities markets, many bankers will want to pull the trigger on transactions before the 1H offering window closes. The (so-far) worst-case scenario: It takes a few months more for markets to accept the new normal. In that case, we\u2019re looking at a really busy fall for new offerings.<\/p>\n

#3- Share-based M&A is very much on the table and it might be a good time for private <\/strong>equity players to close transactions. <\/strong>Some PE players think valuations have been stubbornly high for a while, and the combination of lower comparables after the recent market slump and higher volatility could push serious buyers and sellers to transact *now*. The risk: Some sellers will walk away from prices they think are just too low. Expect share-based M&A to close with fewer hiccups than anything involving the commitment of cash. The wisdom of Warren Buffett\u2019s move to cash earlier this year is now clear to all. <\/strong><\/p>\n

#4- The UAE looks better than ever. <\/strong>Businesses in the UAE have quietly trimmed staff and other expenses in recent weeks to optimize their cost base in a year in which they expect volatility. But the economy\u2019s fundamentals are strong and have been bolstered by regulatory reforms brought in post-covid. That real estate correction we\u2019ve been expecting for two years now? Yeah, there\u2019s lot of new inventory coming onto the market this fall, but we feel a little like we\u2019ve been waiting for Godot on that front\u2026<\/p>\n

#6- Everyone will be watching the price of oil<\/strong> \u2014 the Saudis and Emiratis from a state revenues perspective, the Egyptians from the expenses side of the ledger. The emerging consensus is that even if Trump cools it on tariffs, we\u2019re looking at a slowdown in trade and a bit less demand for oil than forecast at the start of 2025. Oil in the 40s? Probably not. But something in the 50s? Possible \u2014 and with it, questions about financing the deficit and the pace of gigaprojects in KSA in particular. <\/p>\n

#7- Diversification of trade ties is going to be key for Mideast governments. <\/strong>From Egypt to the UAE and Saudi, all of us would have faced a 10% rate at the same time as others faced much sharper US tariffs, signalling we\u2019re in good stead with The Donald. Regardless of what happens with tariffs 90 days from now, deeper integration with a wider variety of trading partners will be the order of the day. <\/p>\n

THE WILDCARD- The Donald is inbound to the Gulf in about a month\u2019s time. <\/strong>US Energy Secretary Christopher Wright is on a nearly two-week visit to our corner of the world, laying the groundwork for Trump to land in the UAE, Saudi, and Qatar some time in mid-May. (Dates for the visit, which hasn\u2019t been confirmed, are still uncertain.)<\/p>\n

\u2600\ufe0fWEATHER- It\u2019s another warm and sunny spring day in Dubai<\/strong>, with temperatures peaking at 35\u00b0C before cooling to 25\u00b0C overnight, while in Abu Dhabi, the mercury peaks at 28\u00b0C, with an overnight low of 22\u00b0C. <\/p>\n

HAPPENING TODAY- <\/p>\n

#1- It\u2019s the fo<\/strong>urth and final day of the EFG Hermes One on One here in Dubai. <\/strong>The One on One is the largest investor conference focused on emerging markets \u2014 and it\u2019s difficult to imagine a more opportune time for companies and equity investors to chew the fat than now: Global markets are roiling in the wake of US President Donald Trump\u2019s bid to reshape the post-Second World War economic order. Fund managers representing more than 250 global institutions are gathering for the event to meet with top execs from 220 companies spanning 12 countries. Among the top UAE firms <\/strong>attending:<\/strong><\/p>\n