War in Ukraine, ongoing coronavirus, climate change all cited as reasons for sharply rising food and oil prices
Ukraine war
Dubai
Reasons why investor interest is increasing in “safe-haven” real estate
The market now offers liquidity, an inflation hedged income flow and safety in one of the world’s preeminent hard currency business hubs. This is a compelling argument for investors both in UAE and abroad
commodity
Saudi Arabia, UAE escape stagflation despite increase in energy, commodity prices due to Russia-Ukraine crisis
The pace of job creation in the UAE was “only marginal” as some firms tried to cut employee costs, an S&P Global report stated, adding that companies were confident activity would rise over the coming year
food prices
Saudi Arabia, UAE banks to remain “relatively insulated” from fallout of Russia-Ukraine conflict: report
Egypt’s banks remain exposed due to the country’s significant reliance on staple food imports, but government support could be vital to mitigate the damage to the economy
Commodities
Russia-Ukraine conflict pushes MENA region into food crisis as wheat, cooking oil costs hit “alarming highs” ahead of Ramadan: UN WFP
The cost of a basic food basket – the minimum food needs per family per month – registered an annual increase of 351 percent in Lebanon, a 97 percent increase in Syria, and an 81 percent increase in Yemen – three countries that also reported sharp currency depreciation
AB In Focus
AB Talks: Evaluating the economic impact of the Russia-Ukraine conflict, rising inflation and energy transition goals
Scott Livermore, the chief economist at Oxford Economics, shares his thoughts on trade, food and commodity prices, inflationary pressures, and the importance of measuring and tackling emissions in this exclusive interview with Arabian Business
Dubai
IMF: Russia has not been suspended, economic impact of conflict and post-Covid recovery must be addressed
With many countries reeling under a large debt burden, the IMF has recognised the need for debt restructuring – including write-offs – for some nations, while for others, the IMF will advise debt reprofiling, so they can pay back their loans over longer time
crude oil output
OPEC+ likely to ratify modest increase in output in next meeting as Russia weekly output drops by 26 percent
With the Russia-Ukraine crisis still raging despite diplomatic efforts for a peace deal, the conflict has fanned inflation, driving up the cost of fuels and food as economies recover from the pandemic
Abu Dhabi
Abu Dhabi’s Mubadala will “pause investments” in Russia as the sovereign wealth fund’s CEO calls for end to crisis
The ongoing “crisis between Russia and Ukraine is a travesty, with catastrophic consequences,” the CEO said
Germany
Germany looks to the UAE, Qatar for oil and gas as it moves away from Russian energy
Germany – which gets more than half of its natural gas, half of its coal, and roughly a third of its oil from Russia – is in talks with the UAE and Qatar to meet its oil and LNG needs
Boeing 777 freighters
Dubai Ruler orders airlift of emergency aid for Ukraine civilians as UAE Foreign Minister calls for ceasefire in meeting with Russia’s Sergey Lavrov
Oil extended gains after the biggest daily surge in 16 months pushed prices back above $100 a barrel, as Russia cast doubts on the progress of its peace talks with Ukraine
Boris Johnson
UK’s Boris Johnson discusses Ukraine crisis with Abu Dhabi, Saudi Crown Princes as oil prices edge higher on US plan to revoke Russia trade status
UK Prime Minister Boris Johnson shared optimism about Saudi Arabia raising oil outputs, after his meeting with the Saudi Crown Prince, but received no guarantees that it would occur
Boris Johnson
UK’s Boris Johnson to meet UAE, Saudi Crown Princes as oil market pressure maintains despite price drop
The leaders will meet while global markets continue a tumultuous 2022 amid Russia’s ongoing war in Ukraine
Alternative Payment Model
Crypto dons mantle of alternative payment mechanism as $50 million of crypto donations pour into Ukraine
While on one hand, Ukrainian citizens may benefit from cryptocurrency as they can convert their wealth into cryptocurrencies and curtail the risk of a banking system collapse; on the other hand, Russians are turning to cryptocurrencies to evade the crashing rouble
Beijing
Oil prices decline as Russia-Ukraine negotiations progress, Beijing overture sends Chinese tech stocks tumbling
The UAE’s largest airlines, Emirates, had previously stated that its’ partner airlines – flydubai and S7 ‑ have suspended certain flights to Russia, Ukraine, and Belarus due to the closure of airspace over these areas
food products
UAE food prices at risk of increase as Ukraine-Russia war jeopardises wheat exports, says supermarket chain
The Ukraine-Russia conflict will likely raise the price of food for consumers in the Middle East