UAE climbs in international competitiveness ranking

The UAE has been ranked in the top ten in several measures of international competitiveness, according to the International Institute for Management Development’s (IMD) World Competitiveness Yearbook, including being placed first in venture capital. The UAE has also risen to 16^th place, from 43^rd place last year, in a ranking of the government support index. The index is a measure of the value of government support as a percentage of gross domestic product and reflects the efficiency of public resource management. The UAE has a target of ranking within the top 10 by 2026.

Dubai International Chamber, which sits underneath the umbrella of Dubai Chamber, announced 138% y/y increase in the number of companies attracted to the Emirate in the first half of 2025. There were significant increases in the numbers of multinationals and SMEs.

President Trump, together with several European counterparts, met Ukraine’s President Zelenskiy on Monday. The meeting ended with a call for a summit between Ukraine and Russia, which would then by followed by an additional meeting including Trump. Europe would provide security guarantees as part of any peace deal, coordinated by the US.

Today’s Economic Data and Events

• 16:30 CA CPI (Jul). Forecast: 1.8% y/y

Fixed Income

• US treasuries saw muted declines in a third consecutive day of falls on Monday, as investors look ahead the Powell’s Jackson hole speech. Yields on the 2yr bond rose 1bps to reach 3.7629%. The 10yr yield gained 2bps to 4.3335%.
• Moves in European bond markets were mixed. The 10yr Gilt saw a 4bps gain to reach 4.735%, while 10yr yields on French, Italian, Spanish and Portuguese bonds all fell in the region of 2bps.
• The Central Bank of the UAE carried out its regular sales of Mbills at the start of the week, raising a total of AED 23bn. The bank sold AED 4bn of 28-day bills at a yield of 4.55%; AED 4bn of 84-day bills at a yield of 4.47%; AED 3bn of 112-day bills at a yield of 4.46% and AED 12bn of 280-day bills at a yield of 4.41%.

FX

• The dollar strengthened on Monday, with the spot index gaining 0.3%. EURUSD fell 0.35% to reach 1.1661. GBPUSD dropped by 0.37% to 1.3504, and USDJPY gained 0.5% to 147.89.
• In emerging markets, USDTRY gained 0.06% to reach 40.8787, while USDINR fell 0.24% to 87.3525.

Equities

• US equity markets were broadly flat on Monday, with investors waiting for a plethora of retailer earnings results. The Dow Jones fell by 0.08%, the S&P 500 declined by just 0.01%, and the NASDAQ rose 0.03%.
• European equity market moves were also fairly subdued on the day. The EuroStoxx 50 fell 0.3%, the CAC 40 fell 0.5%, the DAX declined 0.2% and the FTSE 100 gained 0.2%.
• In the UAE, the DFM rose 0.05% while the ADX was 0.2% lower. The Tadawul fell 0.1%.

Commodities

• Oil prices gained on Monday. Brent futures rose by 1.1% to USD 66.6/b while WTI gained 1.0% to USD 63.42/b.
• Gold prices saw small declines, dropping 0.1% to USD 3,332.72 /troy oz.