Latest news with #Dh987
Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE: Higher premiums, no rains benefit insurance sector as profits jump to 24%
The UAE insurers' net profit increased by Dh190 million or 24 per cent to Dh987 million in the first quarter of 2025 compared to Dh797 million in the same period last year, due to increased premiums and the absence of heavy rains, which hit the country early last year, according to Badri Management Consultancy. "The first quarter of 2025 has remained bright and sunny for the UAE insurance industry. There was an absence of rains, which impacted profits slightly in the first quarter and heavily in the second quarter of 2024," said Hatim Maskawala, managing director at Badri Management Consultancy The UAE recorded heavy rains in the second week of March last year as the country recorded about 6 months of rain over two days, prompting work from home and remote learning due to flooding. This impacted the insurers as businesses and the automobile sector were hit during the heavy downpour. Following record rains last year, the UAE insurers raised motor premiums to combat the rising costs of damages. It is estimated that around 100,000 vehicles were damaged during the record rains in March and April. "The absence of rains coupled with rising premium rates has led to insurance revenue growing by 21 per cent in the first three months of 2025, reaching Dh11.9 billion versus Dh9.8 billion in the same period last year," he said. Maskawala added that the growth is expected to continue, driven by rising premiums both for motor and medical, the key lines impacting the net. Data showed that insurance service results for the analysed listed companies experienced a 70 per cent increase from Dh447 million to Dh762 million. The leading five companies recorded a 43 per cent increase collectively, moving from Dh440 million to Dh629 million during the same period last year. "The increasing concentration of revenue and profit among leading companies reflects a changing market dynamic, where scale and efficiency are key to sustainability and expansion. Going forward, the industry must align premium growth with stronger underwriting and better claims controls to maintain long-term profitability," added Maskawala. CBUAE's regulatory actions have been key in enhancing market discipline and curbing the sale of underpriced policies by financially weak insurers. Still, the industry must stay alert to increasing reinsurance costs and the lagging financial effects tied to some treaty arrangements.
Khaleej Times
27-03-2025
- Automotive
- Khaleej Times
Bestune addresses rising car service costs with exclusive free lifetime service offer
As vehicle technology evolves, so does the cost of car servicing. Reports indicate that the average expense for servicing, repairs, maintenance, and tires reaches $126 per month for a new car. Common servicing costs, including oil and filter changes, labor, fluid top-ups, AC air filter cleaning, tire checks, and a 360-degree health check, are typically performed at 5,000 km intervals and then every 10,000 km thereafter. In response to these rising costs, Bestune has launched an exclusive Ramadan offer that sets a new benchmark in customer value - free lifetime service on all models. This groundbreaking initiative ensures long-term savings and hassle-free service, underscoring Bestune's commitment to affordability and reliability. For a limited time, customers can also take advantage of the lowest EMI starting at Dh987, along with a generous six-year or 200,000 km warranty, making car ownership more accessible and reducing long-term expenses. With car servicing costs on the rise, Bestune's free lifetime service offer gives customers the peace of mind that their servicing needs are covered at no extra charge. Andrew Squires, CEO of Bestune, emphasised the importance of this initiative: "We believe in offering more than just a car - we offer a long-term commitment to our customers. Free lifetime service is our way of ensuring that every Bestune owner enjoys worry-free driving." The Ramadan promotion is expected to attract strong interest from buyers looking for cost-effective mobility solutions. Customers can visit Bestune showrooms, book a test drive, or explore more details online. With this initiative, Bestune reinforces its reputation for quality, service, and customer satisfaction, making it one of the most attractive automotive offers this Ramadan.
The National
21-03-2025
- Business
- The National
Moody's affirms UAE's rating as diversification efforts strengthen
Moody's Investors Service has maintained the UAE's "Aa2" long-term local and foreign currency issuer ratings with a 'stable outlook' as the Emirates continues to strengthen economic diversification efforts and boost non-oil sector growth. 'Aa' ratings are considered be of high quality and subject to very low credit risk. 'The affirmation reflects our expectation that the debt burden of the federal government will remain very low, supported by its long-standing adherence to a balanced budget policy and its limited spending needs due to fiscal decentralisation,' the rating agency said late on Thursday. It also takes into account Moody's expectation of continued strong support from the government of Abu Dhabi, which plays a pivotal role in the UAE federation, it said. 'We expect the UAE's credit profile to continue to benefit from Abu Dhabi's very strong balance sheet, which supports the sovereign's capacity to absorb shocks,' Moody's said. 'Although the UAE is exposed to longer-term carbon transition risks and persistent regional geopolitical tensions, effective policymaking mitigates these challenges, including by advancing economic diversification.' The UAE's economy grew by 3.8 per cent during the first nine months of 2024, with growth driven by a strong expansion in non-oil sectors. Real gross domestic product of the Emirates for the nine-month period to the end of September rose to Dh1.32 trillion ($359.4 billion). The non-oil economy grew by 4.5 per cent annually to Dh987 billion, accounting for nearly 75 per cent of the country's economic activity, while the oil sector made up the rest, state news agency Wam reported earlier this month. The UAE, the Arab world's second-largest economy, has been focusing heavily on diversifying its economy away from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The country has introduced several reforms including longer-stay residence visas as well as new visa categories to attract more talent. Last September, the UAE Central Bank said it expected the country's economy to grow by 4 per cent last year, an increase from its June estimate of 3.9 per cent, on the back of a boost from its non-oil sector. Growth will also be supported by economic agreements the country has signed with its global trade partners, the regulator said at the time. The UAE's non-oil foreign trade also hit a record Dh3 trillion last year − up 14.6 per cent year-on-year. The Comprehensive Economic Partnership Agreements with various nations, from Colombia to Australia, have contributed Dh135 billion to the Emirates' non-oil trade with partner nations, an increase of 42 per cent compared to the previous year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in February. Cepas aim to reduce tariffs and remove bottlenecks that hamper trade. This programme is projected to increase national exports by 33 per cent and add more than Dh153 billion to the economy by 2031. Moody's said on Thursday that the stable outlook reflects efforts by the federal government to 'expand non-hydrocarbon revenue streams, promote the development of non-hydrocarbon sectors and improve attractiveness of the UAE for foreign investment and talent', strengthening the country's overall credit profile. 'This potential upside is balanced by downside credit risks embedded in the UAE's exposure to regional geopolitical tensions that could disrupt the economy's strong diversification momentum and weigh on its longer-term growth prospects,' the agency said. The UAE government's revenue in the first half of 2024 surged 6.9 per cent on an annual basis to Dh263.9 billion ($71.85 billion) or 26.9 per cent of GDP, driven by a substantial 22.4 per cent year-on-year increase in tax revenues, according to the government data. Meanwhile, persistent regional geopolitical tensions remain a latent tail risk, notwithstanding the UAE's efforts to nurture good relations across the entire Middle East region, Moody's said. 'An escalation of third-country tensions into a military conflict could disrupt the UAE's ability to produce and export oil, including through the Strait of Hormuz, while increasing perceptions of risk and instability in the region that could weaken its long-term economic diversification prospects.' It added that the geopolitical risks are partly mitigated by Abu Dhabi's very large government financial assets that support the government's capacity to absorb shocks.
The National
19-03-2025
- Business
- The National
UAE Central Bank follows Fed move to keep interest rates unchanged
Business Banking The base rate for the overnight deposit facility was maintained at 4.40 per cent Sarmad Khan March 19, 2025 The UAE Central Bank kept its benchmark interest rate unchanged on Wednesday, after the US Federal Reserve held its policy rate steady as Washington's tariff war with global trading partners continues to cloud the economic outlook of the world's biggest economy. The Federal Open Market Committee kept the borrowing rates in the 4.25 per cent to 4.50 per cent range for a second time since US President Donald Trump assumed control of the White House for another four-year term in January. The Fed, which cut rates by a cumulative 100 basis points last year, appears in no hurry to reduce its benchmark rate as it aims to counter sticky inflation amid the push for expansionary policies by the Trump administration. In January, Fed Chairman Jerome Powell said he wanted to see "real progress" on inflation before further reducing rates and reiterated his call on Wednesday. "Uncertainty around the economic outlook has increased," the Fed said in a statement, adding that the committee seeks to achieve "maximum employment and inflation at the rate of 2 per cent over the longer run". Most central banks in the Gulf follow the Fed's policy rate moves due to their currencies being pegged to the US dollar, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to a basket of currencies. The UAE Central Bank kept its base rate for the overnight deposit facility at 4.40 per cent, it said in a statement on Wednesday. It has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the base rate for all standing credit facilities. The base rate, which is anchored to the Fed's interest on reserve balances (IORB), signals the general stance of the Central Bank's monetary policy and provides an effective interest rate floor for overnight money market rates. The UAE's economy, which has maintained a robust growth momentum in recent years, grew by 3.8 per cent during the first nine months of last year, driven by a strong expansion in the non-oil sectors as the country continues to diversify its economy. Real gross domestic product of the Emirates for the nine-month period to the end of September rose to Dh1.32 trillion ($359.4 billion). The non-oil economy grew by 4.5 per cent annually to Dh987 billion, accounting for nearly 75 per cent of the country's economic activity, while the oil sector made up the rest, state news agency Wam reported. The Central Bank estimates the UAE's economy to have grown by 4 per cent in 2024 and expects the pace of economic expansion to accelerate to 4.5 per cent in 2025. The non-oil economy, which is projected to have expanded by 4.9 per cent last year, is expected to remain grow at 5 per cent this year, the CBUAE said in its fourth quarter 2024 review. The banking regulator also revised its 2024 estimate for UAE inflation downwards to 1.8 per cent from 2.2 per cent and said it expects inflation to reach around 2 per cent this year, 'driven mainly by non-tradable components of the consumer basket, partially offset by moderating energy prices".
Khaleej Times
06-03-2025
- Business
- Khaleej Times
UAE's GDP growth rate on track to achieve 2031 vision
The UAE recorded a robust 3.8 per cent economic expansion in the first nine months of 2023, powered by a dynamic non-oil sector that now accounts for nearly 75 per cent of the nation's GDP, officials announced this week. The growth underscores the UAE's accelerating diversification efforts as it eyes a 5–6 per cent GDP surge in 2025 and cements its position as a global hub for innovation, trade, and investment. Real gross domestic product (GDP) for the nine-month period ending September 2023 climbed to Dh1.32 trillion ($359 billion), with the non-oil economy rising by 4.5 per cent annually to Dh987 billion ($269 billion). The oil sector, meanwhile, contributed 25 per cent to the GDP, reflecting the UAE's strategic success in reducing reliance on hydrocarbons. Abdullah bin Touq Al Marri, UAE Minister of Economy, attributed the sustained growth to the country's 'forward-thinking economic policies,' including streamlined business regulations, global trade partnerships, and targeted investments in technology, renewable energy, logistics, and financial services. 'Our national economy's resilience reaffirms the effectiveness of our strategies to prioritise flexibility, competitiveness, and openness to global markets,' he said. Al Marri highlighted that the UAE's GDP growth averaged 4.8 per cent between 2021 and 2024, while non-oil GDP growth outpaced this at 6.2 per cent annually. These gains align with the 'We the UAE 2031' vision, which seeks to raise the nation's GDP to Dh3 trillion ($817 billion) by 2031 and position it as a leader in emerging sectors like the circular economy, space tech, and artificial intelligence. 'The UAE's ability to sustain growth amid global uncertainties demonstrates its readiness to embrace new economic models and partnerships,' Al Marri added, pointing to recent bilateral trade deals with India, Turkey, and Indonesia, as well as foreign direct investment (FDI) inflows that topped $23 billion in 2023. According to KPMG, the UAE is poised to remain the fastest-growing economy in the Gulf Cooperation Council (GCC) through 2025, buoyed by its capacity to ramp up oil production ahead of Opec+ peers and a thriving non-oil private sector. The consultancy projects GDP growth to leap from 3.8 per cent in 2023 to 6.7 per cent in 2025, outpacing regional neighbours. The UAE's economic strides are mirrored in its ascent on global indices. It ranked 10th in the 2023 Soft Power Index, reflecting its cultural, diplomatic, and business influence. Abu Dhabi and Dubai dominated Numbeo's 2024 Safety Index, clinching first and fourth places globally, while the UAE itself ranked third worldwide for safety in the Gitnux Marketdata Report. The 2024 World Competitiveness Report saw the UAE jump three spots to seventh globally, surpassing Canada, Japan, and Finland. The nation ranked first in employment rates, Internet penetration, and industrial dispute resolution, and second in tourism revenue and bureaucratic efficiency. For the third consecutive year, the UAE is set to welcome the world's highest influx of affluent migrants, with 6,700 millionaires expected to relocate by end-2024, according to Henley & Partners. This surpasses the US, Singapore, and Canada, with British nationals forming the largest cohort. Analysts tie this trend to the UAE's tax incentives, luxury infrastructure, and stable governance. 'High-net-worth individuals are drawn to the UAE's business-friendly policies, safety, and connectivity,' said Dominic Volek, Henley's group head of private clients. 'Their investments are bolstering sectors like real estate, fintech, and sustainable energy.' Looking ahead, the UAE aims to leverage its COP28 legacy to amplify green investments. Projects like the Abu Dhabi National Oil Company's (Adnoc) $23 billion decarbonisation plan and Dubai's $8.2 trillion Dubai Economic Agenda (D33) emphasize renewable energy and smart technologies.
