Video|14 November 2024

MENA | Can Egypt Curb Inflation While the UAE Takes Bold Climate Steps?

Scott Livermore

Chief Economist & Managing Director

Egypt’s inflation edged higher again in October, increasing to 26.5%. The rise in inflation since August has been driven by the lowering of subsidies on several basic items, including bread, fuel, and electricity. We think inflation will hover around current levels for the rest of the year but expect it to fall sharply in Q1 2025, which should provide room for the central bank to cut interest rates.

In the run-up to the COP29 summit, the UAE unveiled an updated climate plan, committing to cut carbon emissions by 47% from 2019 levels by 2035. The goals faced some criticism for excluding exported emissions and including offsets but they nevertheless cement the UAE’s intention to transition towards net zero. The UAE continues to implement measures to achieve this goal through, for example, growing its renewable energy capacity by 70% last year.

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