Dubai: As MENA countries mostly adopt a reactive market approach, leading sectors in the GCC are directly affected by the Fed’s monetary policies.

The indecisive statistics for the interest rate outcome in the US taps into the grounds of the UAE’s economic model, which aims at amplifying its revenues from trade, transport, tourism and technology. According to the Central Bank of the UAE (CBUAE), their latest rate decision remained unchanged, at 5.4%, in tandem with the latest Fed rate decision. In other words, despite of the region’s resiliency, the state of borrowing costs is directly tied with the awaited inflation, employment, and economic growth figures of the U.S.

“Aside from the interplay between the hawkish and dovish rate outlook, another inflation driver in the region is oil, supported by the transportation sector”, states Ritu Singh, Regional Director of StoneX Group Inc. “With a combination of geo-political tensions and OPEC output cut plans, the region remains resilient with Saudi Arabia and UAE in the lead”, Singh  adds.

The adopted anti-fragile business model of the UAE has only 30% of its GDP tied to oil revenues, and thus, maintains positive non-oil private sector PMI statistics above 57.

In terms of overall GCC growth forecasts, the World Bank puts it at 3.6% in 2024, with projections to reach 3.8% in 2025. Strategic investments in tourism related infrastructure in Saudi Arabia and UAE still attract the greatest number of investors, especially with the committed 1 trillion dollar Saudi Ministry of Tourism investment plan for 2030. The UAE records a Non-Oil Real GDP percentage change of 4.2% between 2020 and 2022, with expectations to grow by 4.2% in 2024 and 5.2% in 2025, according to CBUAE.

From an equity market perspective, the UAE ETF MSCI chart, which tracks the performance of UAE equity market, has a similar direction. It currently shows a neutral to bullish course with respect to its smoothed price action, moving average, and relative strength index, anticipating the next breakout direction with the upcoming policies.

Tracing inflation rates, the overall GCC trends have been going down between June 2022 and December 2023, with targets in tandem with that of the Federal Reserve. However, non GCC countries like Egypt still struggle with containing rising inflationary pressures, striving to implement contractionary monetary policies to bring down the rates.

With quite an ambiguous year ahead, MENA economies are doing their best to remain resilient amidst the FED’s outlook and decisions. Stay in the know with more insightful articles by


The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

GAIN Global Markets Inc. is part of the GAIN Capital Holdings, Inc. group of companies, which has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA. All are separate but affiliated subsidiaries of StoneX Group Inc.

About StoneX Group Inc.

StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune 100 company with a nearly 100-year track record, StoneX Group Inc. serves more than 50,000 commercial, institutional and payments clients, and more than 370,000 retail accounts, from nearly 80 offices across six continents.

Further information on the Company is available at

About is part of StoneX Group Inc. (NASDAQ: SNEX), a publicly traded company that meets the highest standards of corporate governance, financial reporting and disclosure. gives  its clients access to more than  5,500 tradable markets and is one of the global market leaders in leveraged trading.