{"id":103435,"date":"2025-05-08T00:00:00","date_gmt":"2025-05-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-cbuae-keeps-rates-unchanged-trump-to-rescind-ai-export-restrictions\/"},"modified":"2025-05-08T00:00:00","modified_gmt":"2025-05-08T00:00:00","slug":"this-morning-cbuae-keeps-rates-unchanged-trump-to-rescind-ai-export-restrictions","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/05\/08\/this-morning-cbuae-keeps-rates-unchanged-trump-to-rescind-ai-export-restrictions\/","title":{"rendered":"THIS MORNING: CBUAE keeps rates unchanged + Trump to rescind AI export restrictions?"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>We have huge news on multiple fronts this morning: Not only is Disneyland coming to Abu Dhabi, but the US could be removing restrictions on AI exports in a move that would give our AI ambitions a shot in the arm. <\/p>\n

<\/a> AND<\/strong>- The Central Bank of the UAE kept interest rates unchanged yesterday for the <\/strong>third time in a row<\/strong>, in line with the US Federal Reserve, according to a statement (pdf)<\/a>. The base rate applicable to the overnight deposit facility remains at 4.4%, while the rate applicable to borrowing short-term liquidity was kept unchanged at 50 bps above the base rate for all standing credit facilities. We have more on the Fed\u2019s decision in Planet Finance, below.<\/strong><\/p>\n

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The second day of Dubai Capital Market Summit kept the <\/strong>optimism<\/a><\/strong> going<\/strong>, with more signs that momentum in the emirate\u2019s capital markets will continue this year. The DFM has apparently identified 10 IPO-ready tech firms <\/strong>with which it is in discussions, one of which was Talabat, which took to the DFM last year in what was the world\u2019s biggest tech IPO, CEO Hamed Ali said during a fireside chat on stage. <\/p>\n

Sectors in focus:<\/strong> The DFM will continue to look at infrastructure firms \u2014 which are already dominant in the market \u2014 in addition to newer, less represented sectors like tech, tourism and hospitality, and shipping and handling. \u201cWe have 3 or 4 shipping brand names that would be great additions,\u201d Ali said. <\/strong><\/p>\n

It\u2019s not just about traditional IPOs this year, though: <\/strong>Private capital is emerging as a focal point for both investors and fundraisers, with more players offering up platforms to help link both sides together to address growing demand that IPOs alone cannot meet. \u201cSome companies are seeing record demand, and there will never be enough allocation to investors [during IPOs],\u201d Ali said, adding that it\u2019s important to offer platforms that can help businesses raise funds \u2014 and investors identify strong prospects \u2014 to plug that gap ahead of plans to IPO. <\/p>\n

REMEMBER- <\/strong>The DFM launched its own platform for private capital, Arena<\/a>, at the last edition of the summit. It\u2019s not the only one though: Abu Dhabi conglomerate International Holding Company\u2019s Finstreet also includes a private investment platform<\/a>, while independent players like Finbursa<\/a> are launching their own platforms to meet rising demand. <\/p>\n

PLUS- REITs and other capital raising tools like convertibles are also gaining traction<\/strong>, as are follow-on offerings, which help boost liquidity in capital markets and increase their freefloat, experts said. Adnoc has been driving the trend of follow-on offerings, taking an additional 4% stake in Adnoc Gas<\/a> to market in February and a 5.5% stake in Adnoc Drilling in May 2024. <\/p>\n

PSAs-<\/p>\n

? <\/strong>WEATHER<\/strong>- Expect a dusty and breezy day<\/strong>, with northwestern winds kicking up sand and reducing visibility, according to the National Center of Meteorology (pdf)<\/a>. Afternoon highs in Dubai <\/strong>will reach 34\u00b0C and lows of 27\u00b0C. Over in Abu Dhabi<\/strong>, temperatures will reach highs of 30\u00b0C and nighttime lows of 28\u00b0C.<\/p>\n

#1- <\/strong>Flights <\/strong>to Pakistan and Northern India continue to be di<\/strong>srupted: <\/strong>UAE-based airlines Emirates, Etihad, and Air Arabia have canceled or rerouted flights to Pakistan and northern India following airspace closures triggered by regional tensions, though flydubai has resumed flights to most locations, The National<\/a> reports. The airlines advised passengers to check their flight statuses for updates before travelling, as the situation is ongoing.<\/p>\n

<\/a> #2- US visas are out of order for the next two weeks: <\/strong>The US Embassy and Consulate in the UAE will not take visa appointments or fee payments from 15 to 29 May as it transitions to a new visa service provider, the US Mission to the UAE said in a post on X<\/a>. Residents who need emergency appointments during this period are encouraged to visit the US State Department\u2019s visa appointments website<\/a> for further details. <\/p>\n

WATCH THIS SPACE- <\/p>\n

EU <\/strong>eyes sanctions on Russian Lukoil\u2019s Dubai unit: <\/strong>The European Union is considering blacklisting Litasco Middle East DMCC, the Dubai-based trading arm of Russian oil giant Lukoil, for allegedly helping facilitate Moscow\u2019s shadow fleet operations, Bloomberg<\/a> reports, citing documents it has seen. If approved, the designation could have knock-on effects for European shipowners carrying Russian supplies.<\/p>\n

Zoom out: <\/strong>The designation is part of the EU\u2019s proposed 17th sanctions package targeting Russian energy revenue streams through sanctions on 150 vessels, 60 individuals, and major Russian oil exporters including Surgutneftegas. The package is still under discussion and requires unanimous approval from all EU member states.<\/p>\n

DATA POINTS- <\/p>\n

#1- <\/strong>Gross <\/strong>bank assets in the UAE rose 1.6% m-o-m to reach AED 4.6 tn in February<\/strong>, according to the Central Bank of the UAE\u2019s (CBUAE) latest monetary and banking developments report (pdf)<\/a>. Meanwhile, gross credit grew 0.9% m-o-m to AED 2.2 tn, driven by an AED 17.1 bn increase in foreign credit and an AED 1.7 bn rise in domestic credit. Within domestic credit, lending to non-banking financial institutions grew 5.2%, and private sector lending rose 0.7%, offsetting declines of 2% to government-related entities and 1.4% to the government sector.<\/p>\n

Total bank deposits climbed 1.2% m-o-m to approximately AED 2.9 tn<\/strong>, supported by a 5.1% increase in non-resident deposits reaching AED 249.1 bn, and a 0.8% rise in resident deposits. Within resident deposits of AED 2.6 tn, non-banking financial institutions led with a 5.6% gain, followed by government-related entities at 3.8% and the private sector at 1.4%, while government sector deposits dropped 4%.<\/p>\n

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#2- <\/strong>Dubai <\/strong>International Chamber brought 53 foreign companies to the emirate in 1Q 2025<\/strong>, a 39% y-o-y increase, it said in a statement<\/a>. This includes 11 multinationals and 42 SMEs. Chairman Sultan bin Sulayem credited the chamber\u2019s global network of offices for supporting the push, adding that firms are increasingly leveraging Dubai\u2019s advantages to expand locally and internationally.<\/p>\n

HAPPENING TODAY- <\/p>\n

#1- The <\/strong>Airport Show<\/a><\/strong>, taking place alongside the <\/strong>Global Airport Leaders Forum<\/a><\/strong>, will wrap up today <\/strong>at Dubai World Trade Center (DWTC). The events will bring together airport and aviation industry professionals to discuss the latest trends in airport infrastructure, emerging technologies, and solutions to industry challenges. <\/p>\n

#2- The Abu Dhabi Department of Economic Development (ADDED) is leading a <\/strong>delegation of senior officials and business leaders to Japan<\/strong> until Friday, 9 May, according to the Abu Dhabi Media Office<\/a>. The five-day visit aims to explore possibilities for more investment cooperation, and expand trade and industrial ties. A trade and economic partnership agreement between the two sides is expected to be finalized later this year.<\/p>\n

The delegation: <\/strong>UAE government officials and Emirati private sector representatives will participate in several events in Tokyo and Osaka, including the Abu Dhabi Investment Forum (ADIF) and Abu Dhabi-Tokyo Business Forum. The delegation will be looking to deepen cooperation with Japan in clean energy, hydrogen, AI, life sciences, and next-generation technologies, the statement said. <\/p>\n

THE BIG STORY ABROAD-<\/p>\n

Global powers are rushing to calm the flammable situation in South Asia<\/strong>, while Pakistan is vowing a swift response<\/a> that it promised will target military assets and stay clear from civilians. India\u2019s widespread attacks in Kashmir and other provinces ended up killing 31 and injuring dozens, while Pakistan\u2019s retaliation is estimated to have caused 12 casualties and tens of injuries.<\/p>\n

<\/a> OVER IN THE US- The Trump administration is <\/strong>planning to ease<\/a><\/strong> Biden\u2019s last-minute restrictions <\/strong>on exports of advanced AI chips<\/strong>, introduced in January and set to take effect on May 15. The tiered system \u2014 which divided countries into three tiers that were allowed to receive unlimited, capped, or no exports \u2014 will reportedly be cancelled<\/a>, and likely replaced with new, \u201csimpler\u201d rules aiming at handing the US more control over chips abroad, sources reportedly said. Shares of chipmakers rose on the news, with Nvidia up over 3%.<\/p>\n

REMEMBER- <\/strong>The US and the UAE were set to discuss a potential chip agreement during Trump\u2019s visit to the UAE next week<\/a>, as the UAE continues to become a key partner to the US, with some USD 1.4 tn<\/a> in investments in US tech and energy sectors pledged over the next decade. <\/p>\n

ALSO WORTH READING THIS MORNING-<\/strong><\/p>\n