Good news for UAE residents and businesses. The UAE Central Bank has just lowered its Base Rate by 25 basis points, from 4.15% to 3.90%, effective this Thursday. This move follows the US Federal Reserve’s recent decision to cut its interest rates, keeping things in sync because of the UAE’s currency peg to the US dollar.

What does this mean for you? Expect borrowing to get a bit cheaper. Whether you’re eyeing a new mortgage, a personal loan, or business credit, the rates should ease up. In simple terms, monthly payments could get friendlier, especially for those with variable-rate loans.

This comes after the US Fed trimmed its federal funds rate to a range of 3.75% to 4%, hoping to support the job market and tackle stubborn inflation. The ripple effects are clear, softening employment numbers, and ongoing economic headwinds are pushing for these cuts.

Which sectors will benefit

For the UAE, lower interest rates could give a boost to sectors like real estate, tourism, and small businesses by making funding easier. But keep in mind, analysts say the impact might be modest unless the Fed decides to cut rates more aggressively in the future.

Why is the Fed making these rate cuts? Their goal is a tricky balance: tame inflation while keeping employment strong. With big companies cutting jobs and inflation still slightly above target, the Fed is playing it safe, using these rate cuts as insurance against a potential economic slowdown.

Future interest rates

Looking ahead, another cut might come in December, possibly bringing rates closer to 3% in 2026, but things could shift depending on economic data and new Fed leadership.

Stay tuned for more updates and how these changes could affect your wallet!

Dubai just took another leap toward the future of urban living. The city has officially launched a new drone delivery route in Nad Al Sheba, allowing drones to deliver food orders from restaurants and cafés at Avenue Mall straight to residents living near Nad Al Sheba Grand Mosque.

The pilot service is a collaboration between the Dubai Civil Aviation Authority (DCAA), the Islamic Affairs and Charitable Activities Department (IACAD), and Keeta Drone. The first successful delivery was completed during the launch ceremony, led by Mohammed Abdullah Linjawy, Director General of the DCAA.

The move marks a major step in Dubai’s plan to become a global leader in smart transportation and air logistics, combining sustainability, speed, and innovation.

Smart, fast, and sustainable

The Nad Al Sheba route is part of Keeta Drone’s growing delivery network, which already operates four routes in Dubai Silicon Oasis. The company plans to extend coverage to Business Bay and Jumeirah, as part of Dubai’s long-term goal to connect up to 30% of the city by 2026, and eventually 70 per cent within five years.

The use of Nad Al Sheba Grand Mosque as a collection point is particularly symbolic, showing how community landmarks can become hubs for smart city services.

How drones will change your deliveries

This new route isn’t just futuristic,  it’s practical.

• Less traffic: Drones fly above the roads, helping cut down on delivery vans and easing congestion.
• Faster deliveries: Orders can reach customers in under 30 minutes, bypassing traffic lights and road delays.
• Greener operations: Fully electric drones mean zero fuel use and lower carbon emissions.
• Smarter logistics: Drones handle smaller, quicker deliveries, freeing human drivers for bigger tasks.

With strict safety and regulatory oversight from the DCAA, the drone programme is poised to transform how Dubai eats, shops, and moves, one airborne delivery at a time.

The UAE Cabinet, chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved the federal budget for 2026, estimated at Dhs92.4 billion, the largest in the nation’s history.

The budget is projected to generate revenues of Dh92.4 billion with balanced expenditure, reflecting the UAE’s continued fiscal stability and strategic investment in growth.

Sheikh Mohammed said, “This is the highest federal budget since the Union was established. It is a budget that strengthens the federal system and demonstrates our ongoing dedication to balanced development.”

The Cabinet also approved an annual programme to support and enhance the federal financial centre, funded by allocations from the federal budget, aimed at ensuring the financial sustainability of federal institutions.

Economic Growth and Foreign Investment

Sheikh Mohammed highlighted strong national economic indicators, announcing that the UAE’s outward foreign investment balance has reached Dh1.5 trillion, a 9 per cent increase compared to last year. “We are the leading Arab economy and one of the top 20 international economies exporting FDI,” he said on the X platform.

The Cabinet further approved 35 international agreements and memorandums of understanding covering areas of economic and strategic cooperation.

Sheikh Mohammed noted the success of the UAE’s export development policy, with exports growing from Dh470 billion in 2019 to Dh950 billion in 2024, an increase of 103 per cent.

“Our budgets are balanced, our investments are growing, our foreign trade is expanding, and our economy is thriving under the leadership of my brother, His Highness Sheikh Mohamed Bin Zayed Al Nahyan. Our country continues to move from summit to summit with prosperity and stability for its people and residents,” Sheikh Mohammed said.