{"id":88536,"date":"2024-01-31T00:00:00","date_gmt":"2024-01-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/its-day-2-of-the-feds-open-market-committee-meeting-fuel-price-committee-will-announce-new-prices-today\/"},"modified":"2024-01-31T00:00:00","modified_gmt":"2024-01-31T00:00:00","slug":"its-day-2-of-the-feds-open-market-committee-meeting-fuel-price-committee-will-announce-new-prices-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/01\/31\/its-day-2-of-the-feds-open-market-committee-meeting-fuel-price-committee-will-announce-new-prices-today\/","title":{"rendered":"It\u2019s day 2 of the Fed\u2019s Open Market Committee meeting + Fuel Price Committee will announce new prices today"},"content":{"rendered":"

Good morning, ladies and gentlemen, and welcome to a jam-packed hump day issue.<\/strong>Today\u2019s news cycle is led predominantly by updates from the healthcare sector, with three separate M&As as well as expectations that public and private sector spending on healthcare will rise this year. <\/p>\n

PUBLIC SERVICE ANNOUNCEMENTS-<\/p>\n

T<\/strong>rucks weighing over 65 tonnes will be subject to fines of up to AED 15k if they operate on federal roads as of tomorrow.<\/strong> That\u2019s when the four-month grace period on the amended federal law<\/a> on heavy vehicles elapses. The amendments, which came into effect on 1 October, granted a four-month window for vehicle owners and companies to adjust before penalties came into force. All heavy vehicles operating on the roads fall under the law\u2019s purview, with only security, military, police, and civil defense vehicles exempt.<\/p>\n

\n

WATCH THIS SPACE-<\/p>\n

<\/a> Dubai\u2019s non-oil economy is set to get a boost with high-growth industrial economic <\/strong>zones <\/strong>thanks to the Dubai Integrated Economic Zones Authority\u2019s (DIEZ) 2024-2026 strategy, which DIEZ Chairman Sheikh Ahmed bin Saeed Al Maktoum approved, according to the Dubai Media Office<\/a>. The strategy aims to make freezones \u201ca major contributor to the local and national economy\u201d as well as see DIEZ investing in high-value businesses and introduce new products and services to DIEZ. DIEZ encompasses the Dubai Airport Freezone, Dubai Silicon Oasis, and Dubai CommerCity. <\/p>\n

\n

DATA POINTS-<\/p>\n

<\/a> #1- Robots are cutting down on 39k human labor hours by executing 1.8 mn automated <\/strong>tasks <\/strong>for Dubai\u2019s Finance Ministry with a 98% accuracy rate<\/strong>, including financial procedures, web services, and hardware monitoring, reports state news agency Wam<\/a>. The new robotic process automation (RPA) reduced average handling times by 65% in 2022. RPA will be rolled out over 100 processes in an upcoming third phase, cutting handling time by an additional 10%.<\/p>\n

#2- Activity in Abu Dhabi\u2019s business sector picked up last year, with new economic <\/strong>licenses for businesses worth more than AED 210.7 bn issued in 2023<\/strong>, according to an Abu Dhabi Media Office statement<\/a>. Some 25.6k new economic licenses were issued during the year, along with a 3.5% y-o-y increase in license renewals to 75.8k. The lion\u2019s share (94.1%) of new licenses were in the commercial sector. <\/p>\n

Breakdown:<\/strong> The number of new licenses in agriculture, fishery, and livestock jumped 288.5% y-o-y, according to Abu Dhabi\u2019s Business Activity Report for 2023. A total of 363 new industrial licenses were issued in 2023, rising 51.3% y-o-y, while new tourism licenses rose 22.4% y-o-y to 219 in total. <\/p>\n

<\/a> #3- The UAE is expected to see a 95% increase in wealth per capita by 2033<\/strong>, according to the Brics Wealth Report<\/a>. The country\u2019s m\u2019naire population rose 77% since 2013 to 116.5k m\u2019naires. Brics countries hold a combined investable wealth of USD 45 tn, the report says. Across these countries, there are currently 1.6 mn m\u2019naires, with that figure set to rise 85% over the next decade. <\/p>\n

REMEMBER- <\/strong>The original BRICS group, consisting of Brazil, Russia, India, China, and South Africa, recently incorporated<\/a> new MENA members including the UAE, Egypt, Ethiopia, Iran, and Saudi Arabia.<\/p>\n

#4- The number of real estate transactions in Ajman rose 43% y-o-y to 11.5k in 2023,<\/strong> totaling AED 16.9 bn<\/strong>, Wam<\/a> reports, citing the annual report issued by the Ajman Department of Land and Real Estate Regulation. <\/p>\n

The most expensive sale of the year?<\/strong> An AED 136 mn transaction in Al Nakheel 2 neighborhood. <\/p>\n

\n

HAPPENING TODAY- <\/p>\n

<\/a> #1- You\u2019ll know today how much to pay at the pump in February<\/strong>, with the Fuel PriceCommittee set to disclose petrol and diesel prices for the month after convening to review global rates, reports Khaleej Times<\/a>. The committee has cut petrol prices for the past three months, bringing Special 95 to AED 2.71 \/ liter. That\u2019s below the global average of AED 4.72 \/ liter, Khaleej Times notes. <\/p>\n

IN CONTEXT- Oil prices are rising amid geopolitical tensions:<\/strong> Brent crude is currently trading at USD 82.87 \/ bbl and WTI is at USD 78.09 this morning, with indications that prices will continue to inch higher on the back of the situation in the Red Sea and its knock-on effect on global shipping, reports Bloomberg<\/a>. This comes as Saudi national oil company Aramco decided yesterday<\/a> to abandon its plans to raise production to 13 mn barrels per day (bbl \/ d) by 2027, moving instead to hold capacity at 12 mn bbl \/ d.<\/p>\n

#2- <\/strong>The Federal Reserve will kick off the second day of its two-day policy <\/strong>meeting later <\/strong>today. <\/strong>Economists expect the Fed to leave rates unchanged and wait until the summer before loosening up, according to a Reuters poll<\/a> and the Financial Times<\/a>. <\/p>\n

REMEMBER- <\/strong>The Central Bank of the UAE \u2014 along with most central banks in the GCC \u2014 usually follows the Fed\u2019s policy rate moves as part of the peg of the AED to the USD. <\/p>\n

#3- <\/strong>The Emirates Airline Festival<\/a><\/strong> of Literature (LitFest) begins today<\/strong> at the Intercontinental Dubai Festival City, and runs through until 6 February. The event\u2019s speaker lineup includes Booker Prizewinner Paul Lynch and UAE astronauts Hazza AlMansoori and Sultan AlNeyadi. <\/p>\n

\n

HAPPENING THIS WEEK<\/p>\n

Abu Dhabi Arbitration Center goes live tomorrow:<\/strong> The Abu Dhabi International Arbitration Centre (arbitrateAD) will launch on Thursday, Wam<\/a> reports. The center's team includes Arnold & Porter Global Chair of International Arbitration Practice Maria Chedid (bio<\/a>), who will serve as the first woman president of an arbitral court in the region.<\/p>\n

\n
\n
\n
\n

Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

\n

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

It\u2019s nearly as busy a morning for global business news as it is here at home. <\/strong>Among the headlines you\u2019ll want to know about today:<\/p>\n