Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
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Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)

Iranian experts and traders are concerned that the tensions between Iran and the UAE could affect the mutual trade relations, at a time when Tehran is facing an economic crisis due to the impact of sanctions and the coronavirus pandemic.

Iran condemned the recent UAE-Israeli peace treaty, and President Hasan Rouhani gave a strongly worded statement denouncing the agreement.

In response, the Emirati foreign ministry summoned Iran's charge d'affaires in Abu Dhabi and gave him a memo saying Rouhani’s speech was “unacceptable,” warning that it could have serious repercussions for the security and stability of the Arabian Gulf region.

However, Iranian economic and foreign experts ruled out the possibility that the UAE would change its relations with Iran after the peace treaty with Israel, according to the Iranian Ilna Agency.

The chairman of Iran-UAE Joint Chamber of Commerce, Farshid Farzanegan, told the agency that despite economic problems and the spread of the coronavirus, the UAE was the only country to which Iran’s exports increased.

Farzanegan announced that Iran’s exports to the UAE increased by 16 percent in the first four months of the Iranian year that starts on March 21.

He noted that economic relations must be separate from political issues, noting that due to sanctions, Tehran does not have many options for trade, and Turkey and the UAE are two countries where Iranian traders have maintained their activities.

“Iran’s exports to the UAE were $4.5 billion and our imports from this country were $8.9 billion, in other words, the volume of trade between the two countries is $13.4 billion.”

He then pointed to the major imported and exported goods between both countries, saying that till last year, petrochemical and mineral materials as well as industrial products and machinery have been the major exports to the UAE.

The chairman also noted that Iranian agro products are highly important exports for traders.

Farzanegan also pointed out that there is currently no problem regarding forex shops in the UAE and money transactions are done much faster than other countries in the Persian Gulf, including Oman.

He noted that the UAE is not the only vital vein for money arriving into the country but the country is definitely a gateway for it. He explained that all re-exports and re-imports are done through the UAE because it is a regional hub for imports and exports.



HSBC Reportedly Plans Job Cuts Across UK Wealth Business in AI Push

HSBC logo is seen in this illustration taken January 7, 2026. REUTERS/Dado Ruvic
HSBC logo is seen in this illustration taken January 7, 2026. REUTERS/Dado Ruvic
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HSBC Reportedly Plans Job Cuts Across UK Wealth Business in AI Push

HSBC logo is seen in this illustration taken January 7, 2026. REUTERS/Dado Ruvic
HSBC logo is seen in this illustration taken January 7, 2026. REUTERS/Dado Ruvic

HSBC is planning sweeping job cuts across its UK wealth management business, including a sharp reduction in financial advisers and specialist staff, as part of a broader push to integrate AI, the Financial Times reported on Wednesday.

The bank plans to cut about half of management and specialist roles in the business, while reductions among financial advisers could reach around 70%, the report said, citing people familiar with the plans.

HSBC does not disclose the number of employees in its UK wealth business, ⁠though it is ⁠thought to have hundreds of relationship managers across the country, according to the FT.

The bank did not immediately respond to a Reuters request for comment outside regular business hours.

"HSBC UK is a long-established, leading UK wealth manager and premium banking provider," the bank ⁠said in a statement to Reuters. "We're continuing to evolve to deliver more digitally enabled products and journeys to support our best-in-class wealth service and meet the changing needs of our customers."

The bank is currently in a consultation period on the proposed changes, the report said, adding that affected employees are expected to leave by the end of the month.

In May, Chief Executive Georges Elhedery said at an HSBC investor day event that staff needed ⁠to ⁠embrace AI-driven change rather than resist it and that "generative AI will destroy certain jobs".

Elhedery has made AI a central part of his strategy since taking over in 2024, deploying the technology across multiple functions and businesses to simplify operations and personalize content for customers.

Banks across the globe have increased investments in AI, reshaping workforces and leading to changes in job roles. This has deepened concerns among economists that AI will upend established industries, with job losses already emerging in sectors most exposed to automation.


Norway Plans to Spend $63.6 Billion from Wealth Fund in 2027

A general view of the cityscape in Oslo, Norway November 17, 2020. NTB SCANPIX/Cornelius Poppe via REUTERS
A general view of the cityscape in Oslo, Norway November 17, 2020. NTB SCANPIX/Cornelius Poppe via REUTERS
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Norway Plans to Spend $63.6 Billion from Wealth Fund in 2027

A general view of the cityscape in Oslo, Norway November 17, 2020. NTB SCANPIX/Cornelius Poppe via REUTERS
A general view of the cityscape in Oslo, Norway November 17, 2020. NTB SCANPIX/Cornelius Poppe via REUTERS

Norway's minority Labour Party government said on Wednesday it plans to raise its spending level in 2027 from the country's $2.3 trillion sovereign wealth fund to help cover public expenses.

The government proposed withdrawing 608.4 billion Norwegian crowns ($63.61 billion) from the fund in 2027, up from a revised 583.4 billion in 2026, and must ⁠now negotiate with ⁠four centrist and left-wing parties to pass the budget.

Gross domestic product (GDP) outside the oil industry is now expected to grow by 1.1% this year, against 1.7% growth seen in ⁠May.

Growth is seen at 1.7% in 2027, an increase from 1.6% predicted previously.

"The budget proposal is estimated to have a neutral effect on the activity in the economy next year," the government said in a statement.

It saw core inflation in 2026 at 3.1%, down from 3.2% seen in May, easing to ⁠a ⁠rate of 2.8% in 2027 against 2.6% seen previously.

The structural non-oil deficit for 2027, a key measure of how much money the government will spend from the wealth fund, was expected to be 2.7% of the fund's projected value at the end of 2026, in line with the current year.


Moody’s: Spending Restraint to Strengthen Saudi Arabia’s Fiscal Recovery in 2027

Saudi capital, Riyadh (Reuters)
Saudi capital, Riyadh (Reuters)
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Moody’s: Spending Restraint to Strengthen Saudi Arabia’s Fiscal Recovery in 2027

Saudi capital, Riyadh (Reuters)
Saudi capital, Riyadh (Reuters)

Credit rating agency Moody’s said on Tuesday that the fiscal recovery planned for Saudi Arabia in 2027 supports its view that prudent fiscal management will remain a key factor in spending and borrowing decisions.

The agency also noted that reprioritizing state investments could preserve fiscal space while economic diversification continues.

Commenting on Saudi Arabia’s Pre-Budget Statement for next year, the rating agency said that prolonged trade disruptions and additional spending have limited the fiscal improvement it previously expected.

However, it said, Saudi Arabia’s move to rein in spending in 2027 reinforces its view that prudent fiscal management will remain a cornerstone of spending and borrowing decisions.

For 2027, the government projects a spending decrease to SAR 1.392 trillion ($371.2 billion), alongside a 1% rise in revenue to SAR 1.202 trillion ($320.5 billion); this would narrow the projected deficit to around SAR 191 billion ($50.7 billion), equivalent to 3.6% of GDP.

Moody’s said the government's ability to reprioritize investments linked to Saudi Vision 2030 could preserve fiscal space while economic diversification continues. Focusing resources on projects with strong returns would likely help reconcile growth objectives with spending restraint.

As for oil, the agency expected that disruptions to strategic shipping routes will persist through the end of the first half of 2027, which could affect oil production. However, it noted that higher oil prices have cushioned the impact of lower production and exports in recent months.

Saudi Arabia's real GDP is expected to contract 3.6% in 2026, largely because of a sharp decline in oil activity, even as the non-oil economy continues to expand, according to the Ministry of Finance's Pre-Budget Statement for 2027.

The Ministry estimates that oil activity will decline by around 21.8% this year, while non-oil activities are expected to grow 3.2%, helping cushion the impact of lower oil output on the wider economy.

Non-oil activity grew 1.8% in the first half of 2026, lifting its contribution to GDP to a record 57.3%, the statement said.

Moody’s review reflects a credit assessment of the Pre-Budget Statement for 2027 that places more emphasis on the government's capability to recalibrate investment and prioritize spending efficiency while explicitly preserving its overarching economic diversification goals. This, it said, would help preserve fiscal flexibility amid geopolitical strains and global market uncertainties.