With Washington and Beijing extending trade talks until November 10, avoiding immediate tariff hikes, global markets are relieved, and the UAE is among the key beneficiaries, experts say.
The US-China decision to continue negotiations has reduced volatility in tech exports and the oil market, both vital to the UAE’s trade-driven economy. Lower trade tensions and controlled UAE inflation at 2.4% as of June 2025 pave the way for a potential 25 basis-point interest rate cut in September, aligning with US Federal Reserve expectations.
Analysts believe this move could boost domestic growth momentum, especially in real estate and equities, two sectors already experiencing strong uptrends. The UAE MSCI index is trading above 20, nearing decade highs, while the real estate sector retains its safe-haven status, with the average transaction value reaching Dh2.7 million in the first half of 2025.
Razan Hilal, market analyst, CMT at forex.com
Razan Hilal, market analyst, CMT at forex.com, stated: “The UAE economy is in a favorable position, benefiting from easing trade tensions, stable inflation, and a likely rate cut. These factors could sustain bullish sentiment in equities and maintain strong property market demand. Even if global trade worsens, the UAE’s diverse partnerships, especially with China, provide resilience against short-term shocks.”
Although the current trade truce offers relief, a breakdown in talks could quickly trigger market anxiety. However, the UAE’s diverse economic base, growing non-oil sectors, and strategic role as a global trade hub offer buffers against such challenges.
Hilal further commented: “In the event of renewed tariff pressure, supply chain adaptability and strong Asia-GCC trade links could be crucial stabilizing factors. For now, the UAE’s economic outlook remains positive, with monetary policy, sectoral momentum, and global trade diplomacy aligning in its favor.”
