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UAE M3 money supply 17.72% y-o-y in Jun-23

- UAE M3 money supply grew at a year-on-year rate of 17.72% in Jun-23, reflecting a slowdown compared to the previous period but still significantly above the one-year average.
- The growth rate exceeding the long-run average by 11.08 percentage points indicates a potential structural change in the economy's liquidity dynamics.

Oil: On the Other Hand…

• A 15% increase in the price of Brent since early July re-energised the oil bulls. However, forces continue pulling in both directions, suggesting that a price in the US$80-90pb range at year-end is still more likely than USD100.

By Alastair Newton

UAE PMI 55.7 in Jul-23

- The UAE's PMI for July 2023 stood at 55.7, indicating ongoing expansion in economic activity, albeit at a slightly slower pace compared to the previous month.
- This reading represents the lowest level recorded since May 2023 and falls marginally below the one-year average, signaling a small deviation from the usual level of economic activity.

UAE M3 money supply 20.8% y-o-y in May-23

- UAE's M3 money supply surged by 20.8% year-on-year in May-23, surpassing the previous rate and indicating a significant expansion in liquidity.
- The current growth rate stands 7.18 percentage points above the one-year average and 14.38 percentage points above the long-run average, suggesting a substantial influx of funds into the economy.