Video|31 October 2024

MENA | Oil Prices Stable, But for How Long?

Scott Livermore

Chief Economist & Managing Director

Following Israel’s strike on Iran in response to the 1st October missile attacks, Brent crude fell sharply, dropping some $4pb. This suggests that markets think the risk of further escalation is contained. We share this view. We expect demand concerns to return to the fore, particularly around oil demand in Asia, and the risks to oil prices are skewed to the downside. We forecast oil prices remaining around current levels and averaging of $71 per barrel in 2025.

The UAE recorded US$16bn in greenfield FDI investments in 2023, cementing the nation’s ranking as a top FDI attraction spot. Key sectors leading the inflow of investment were financial services, real estate, and manufacturing, which aligns with the UAE’s vision of expanding capacity & strengthening its economic resilience through non-oil sector diversification. Strong growth prospects and a business-friendly environment will maintain the UAE’s attractiveness to investors.

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