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Most central banks in the Gulf Cooperation Council moved swiftly to lower key interest rates after the Federal Reserve trimmed its policy rate by 25 basis points, reinforcing the strong alignment between Gulf monetary policy and that of the United States. The decision saw the Central Bank of the UAE reduce its overnight deposit facility base rate to 3.90 per cent from 4.15 per cent, while the Saudi Central Bank trimmed its repo rate to 4.50 per cent and reverse-repo rate to 4.00 per cent.

This round of cuts marks the second such move by the Federal Reserve this year and comes amid a backdrop of moderating inflation globally and a focus on supporting non-oil growth across the region. Two Fed policymakers dissented in the decision, and Chair Jerome Powell cautioned that a December rate cut was not assured.

The Gulf region’s strong inclination to follow U. S. monetary policy stems from the fact that five of the six GCC currencies, including the Saudi riyal, UAE dirham and Qatari riyal, are pegged to the U. S. dollar. Only the Kuwaiti dinar is linked to a pegged basket of currencies of which the dollar is the dominant component, giving Kuwait greater policy flexibility.

Beyond the peg dynamics, the rate cuts serve a broader strategic goal: to reduce borrowing costs and stimulate investment in sectors aligned with the region’s diversification agenda, such as real-estate, manufacturing and tourism. According to analysis by CFI, inflation in the Gulf is projected to hover around 1.9 per cent in 2025, with GDP growth estimated at 4.0 per cent on average, meaning there is space to ease monetary policy without immediate inflation risk.

While the broad pattern across the region is one of alignment with Washington, there are subtle distinctions. Kuwait opted to hold its rates unchanged, signalling that local conditions rather than external alignment would guide its stance. Analysts say that Kuwait’s stronger inflation headwinds and different economic profile justify such a deviation.

Market watchers note that the rate cuts may deliver stimulus to credit growth, though some risks remain. Lower interest rates could dampen returns on traditional savings vehicles and simultaneously sharpen competition among banks. For governments and businesses in Gulf economies, cheaper financing may bolster infrastructure projects and non-oil activities. A weaker US dollar, another by-product of U. S. policy easing, could lend further support to oil prices—helping export-based economies—but it also carries the risk of higher import costs.

In the UAE, the central bank’s move to 3.90 per cent marks the lowest policy rate since 2022. This step is expected to make loans and mortgages more affordable, offering a boost to the non-oil sector and domestic demand. In Saudi Arabia, the rate adjustment is directly aligned with the broader reform agenda under its Vision 2030, which hinges on greater private-sector participation and attraction of foreign investment requiring cheaper capital.

Some central bankers caution that while rate cuts provide stimulus, they cannot fully offset structural headwinds such as global energy demand shifts, supply chain disruptions and geopolitical uncertainty. The Federal Reserve’s cautious tone — emphasising that further cuts are not guaranteed — adds an extra layer of uncertainty for regional banks that shadow U. S. policy.

In this context, Gulf monetary authorities appear to be striking a careful balance between maintaining currency stability, supporting growth and safeguarding financial stability. As their economies strive to scale non-hydrocarbon sectors, the timing and scale of rate cuts are being calibrated not only to external headwinds but also to domestic structural priorities.

Dubai-listed developer Emaar Properties is sharpening its global expansion strategy by placing a stronger emphasis on India while exercising caution over entry into China’s troubled housing market, according to chief executive and founder Mohamed Alabbar.

Alabbar told the Future Investment Initiative conference in Riyadh that India would be “our next big step,” citing two decades of operations in the country and significant growth potential. He emphasised that, while Emaar remains “very interested in China,” it is holding off until the market shows clear signs of recovery, noting that “it is a different world. Let them recover.”

The directive comes after Emaar posted strong financial results: net profit jumped 25 per cent to AED 18.9 billion last year and rose a further 34 per cent in the first half of 2025, conditions that Alabbar says position the firm to target large market acquisitions rather than start-ups abroad. Emaar’s land-bank footprint already spans more than 1.87 billion sq ft globally, including a 122 million sq ft stake in India and around 175 million sq ft outside the UAE.

In India the driver is rising urbanisation, youthful demographics and a housing deficit that Emaar believes it is well placed to address. Alabbar signalled that the company is pursuing joint-venture partnerships with local groups rather than divesting its Indian operations, dismissing reports of a sale to one of the country’s major conglomerates. By contrast, China presents multiple headwinds including a pronounced housing market slump: new-home prices in 63 out of 70 major Chinese cities fell in September, reflecting a 0.4 per cent month-on-month drop and a 2.2 per cent year-on-year fall.

Analysts say Emaar’s bifurcated strategy makes sense in the context of broader market dynamics. India’s economy is forecast to grow about 6.7 per cent in fiscal 2025-26, according to a Reuters poll, while China is projected to expand by roughly 4.8 per cent amid real-estate weakness. Alabbar noted that the company sees China’s environment as “still suffering with their housing problem, but they’ll come up with it,” stating that Emaar wants to be ready rather than reactive.

Emaar’s preferred mode of overseas expansion appears to be acquiring significant stakes in existing developers, upgrading business models and rolling out its integrated real-estate offering rather than green-field launches. “Maybe you go and buy a majority stake in a developer and then change the way they do business … or maybe they already do good business and we learn from them,” Alabbar explained. That approach aligns with Emaar’s low net debt, elevated cash position and willingness to invest in large markets such as the US, Europe and China.

Critics caution that while India holds promise, foreign developers often face regulatory, land-title and partner-alignment risks. Emaar’s long-standing Indian venture, launched in 2005, endured partner disputes and execution delays, a history that Alabbar acknowledged when he said “we’ve been there 20 years. That’s big for us.” He further noted that successful growth in India depends on selecting the proper location and product mix. Meanwhile, China’s structural property problems are deep-rooted: unsold inventory and falling valuations continue to impair home­buyer confidence, raising questions about the timing of any major developer expansion into the market.

Ethereum’s trajectory is showing signs of strengthening as institutional demand, staking growth and protocol upgrades converge to position the network for a possible lead in the upcoming crypto cycle. The asset has been trading in a holding pattern around the $4,000–$4,300 range while market watchers debate whether this consolidation presages a breakout or a renewed test of support. According to exchange-data and on-chain indicators, Ethereum’s fundamentals are increasingly robust as it faces critical technical levels.

Institutional flows into Ethereum-related products have doubled since early 2025, with fund holdings reaching an estimated 6.5 million ETH and staking totals climbing to a record near 36.1 million. These developments reflect rising confidence in the network’s long-term value proposition as more traditional investors enter the space. On-chain records show that major whale wallets and “smart money” participants are accumulating, while staking reduces circulating supply and enhances scarcity dynamics.

Ethereum’s dominance in the decentralised finance and stable-coin settlement sectors amplifies that structural momentum. The network remains the foundational layer for smart-contract use-cases, layer-2 roll-ups and tokenised assets, lending greater weight to its ecosystem compared with more speculative cryptocurrencies. Developer-activity metrics place Ethereum ahead in creating new builds, deploying upgrades and supporting applications, reinforcing its role as a critical infrastructure asset rather than simply a trading vehicle.

On the technical front, key resistance near $4,250–$4,300 has become a focal point for analysts. A sustained breakout beyond that zone could unlock targets in the $5,000–$6,000 range and potentially much higher over the next year or two. Conversely, failure to clear that barrier could invite a re-test of support zones around $3,900–$4,000, a scenario flagged by bearish analysts. Macro-conditions such as global interest-rate policy, liquidity flows and risk-appetite remain wild cards, keeping short-term momentum fragile even as the long-term case strengthens.

Competition from alternative layer-1 blockchains and regulatory uncertainties remain headwinds. While Ethereum remains the ecosystem leader, other chains are gaining traction with lower fees and faster speeds; the extent to which Ethereum preserves its dominance will depend on its ability to scale and manage cost pressures. Moreover, regulatory scrutiny of crypto assets and staking vehicles may alter the institutional adoption timeline, requiring cautious interpretation of bullish narratives.

Emerging upgrades to the network architecture provide a catalytic backdrop. The so-called “Fusaka” upgrade, scheduled for late 2025, aims to deliver enhancements to sharding and data-availability that should improve throughput and reduce fees. These technical improvements may lower entry barriers for decentralised-applications and stimulate further ecosystem growth, thereby reinforcing Ethereum’s value proposition. At the same time, staking yields continue to incentivise long-term holders and reduce the liquid supply, offering a structural support mechanism for price.

Engineering firm ABB India has announced a 25 per cent increase in the production capacity of variable speed drives at its Peenya facility in Bengaluru. The expansion involves a newly installed production line equipped with advanced automation and sensor-based monitoring, and is aimed at boosting local manufacturing, reducing lead times and supporting domestic industry sectors such as buildings, data centres, water, cement and metal processing.

The new manufacturing line is reported to slash lead-times by up to 40 per cent while enabling more customer-specific configuration of high-power drives. According to AR Madhusudan, Business Line Manager, Drive Products at ABB India, “As we mark two decades of drives production in India, this expansion reinforces our strong commitment to advancing local production capabilities and delivering energy-efficient technologies for India’s industries.” The upgrade is said to align with the country’s wider ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives and reflect the Group’s deployment of Industry 4.0-style automation.

The enhanced line integrates robotics for the assembly of key components and digital monitoring tools for real-time visibility of operations, designed to boost productivity while reducing manual handling and improving safety. Tuomo Hoysniemi, Division President for Drive Products in ABB Motion, stated the move supports the firm’s global push to help industries become leaner and cleaner by localising production and strengthening ecosystem proximity to customers.

Driven market demand for energy-efficient drives has been growing rapidly, as industries seek to reduce electricity consumption and enhance operational performance. VSDs allow electric motors to adjust speed to match demand, which in turn lowers energy use and improves process control. ABB’s upgrade adds capacity for large-power-rated drives to meet higher performance needs in key industry verticals.

The decision to bolster local manufacturing forms part of ABB’s broader global strategy. The firm has previously stated it aims to achieve over 90 per cent local production in key markets including India, to mitigate supply-chain risk and respond more nimbly to demand. Outside India, ABB has increased investment in the U. S. and Europe to expand local production capacity for electrification equipment and industrial automation.

Industry analysts note that with growing pressure on carbon emissions as well as rising electricity costs, the demand for high-efficiency drives is set to rise steadily. Manufacturing localisation also delivers benefits such as reduced logistics cost, faster service and improved customisation, especially when the line can deliver “made-to-order” drives to match client specifications.

In India, the upgrade is also timed with the global celebrations by ABB of 50 years of innovation in drives and two decades of drives production in India. The move is expected to strengthen ABB India’s position among competitors in the domestic automation market, in which other firms are also investing in local ecosystem capabilities and digital manufacturing.

However, challenges remain. While localisation reduces lead times and improves responsiveness, it also requires ongoing investment in workforce skills, digital infrastructure and supply-chain resilience. The extent to which the upgraded line will translate into significantly higher market share for ABB India or broader cost advantages remains to be seen. Similarly, customer uptake may depend on the long-term savings delivered by the drives and the availability of after-sales support in the regions targeted.

By K Raveendran New Delhi appears to be recalibrating its crude-oil sourcing strategy under mounting pressure from Washington, signalling what may be a strategic shift away from Moscow in favour of deeper ties with the United States. Over the past few months, Indian refiners, including the major private player Reliance Industries, have ceased or paused […]

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