Monthly Insights - October 2024

Data out of the US remained strong in the month following the Federal Reserve’s first interest rate cut in four years. The release of the September FOMC minutes and subsequent commentary from Fed officials make it apparent that that initial 50bps move will not be followed by a run of further half-point cuts to the Fed Funds rate. At this point, markets are looking to the result of the US presidential election, while remaining attentive to developments in the Middle East.

We still hold a constructive view on regional growth in the GCC, although there is some sign of moderation with regional PMIs somewhat mixed in September and Bahrain’s Q2 growth figure falling. Nevertheless, high levels of greenfield FDI into a range of sectors will be supportive of growth both in the near and medium term, while Dubai’s residential real estate sector still shows no sign of slowing with a new monthly record for transactions set in September.

Monthly Insights - October 2024