The Central Bank of the UAE (CBUAE) has announced it will maintain the base rate applicable to the overnight deposit facility (ODF) at 4.40 per cent, following the US Federal Reserve’s (US Fed) decision to keep its interest rate on reserve balances (IORB) unchanged.

The CBUAE also confirmed it would maintain the interest rate for borrowing short-term liquidity from the central bank, set at 50 basis points above the base rate for all standing credit facilities.

The base rate, which is closely tied to the US Fed’s IORB, serves as a key indicator of the UAE’s monetary policy stance and acts as an effective floor for overnight money market interest rates within the country.

The decision follows the US Fed’s latest move to hold rates steady, signalling a cautious approach toward further tightening amid evolving economic conditions.

US Fed remains attentive to economic risks

On January 29, the US Fed announced its decision to maintain the target range for the federal funds rate at 4.25 to 4.50 per cent, citing solid economic growth and stable labour market conditions, while acknowledging that inflation remains somewhat elevated.

In its latest assessment, the Federal Open Market Committee (FOMC) noted that economic activity has continued to expand at a solid pace, with the unemployment rate stabilising at a low level in recent months. The committee also emphasised that labour market conditions remain strong, although inflation pressures persist.

The FOMC reiterated its commitment to achieving its dual mandate: maximum employment and a 2 per cent inflation target over the longer run. However, the Committee observed that risks to achieving these goals remain roughly balanced, and the economic outlook remains uncertain.

In making its decision, the FOMC stated that it would carefully assess incoming data, evolving economic conditions, and the balance of risks when considering future adjustments to the federal funds rate. The committee also highlighted its ongoing efforts to reduce its holdings of treasury securities and agency mortgage-backed securities as part of its strategy to manage inflation.

“The committee is strongly committed to supporting maximum employment and returning inflation to its 2 per cent objective,” the statement read. “We will continue to monitor the implications of incoming information and adjust our policy stance as appropriate if risks emerge that could impede the attainment of our goals.”

The FOMC’s next steps will depend on a range of factors, including labor market conditions, inflation expectations, and broader financial and international developments.

The decision was unanimously supported by the voting members of the committee, including Jerome H Powell (chair) and John C Williams (vice chair).

DAMAC Properties has unveiled Riverside Views, its first major development of 2025.

The new project is part of the newly-launched DAMAC Riverside community.

The launch event, held at the Coca-Cola Arena, was attended by Amira Sajwani, MD of DAMAC Properties, along with senior executives from the company. The event also saw a strong turnout of agent partners, brokers, and both regional and local media representatives.

Among the star-studded guests were globally acclaimed celebrities and influencers, including Indian Bollywood superstar Shahrukh Khan.

In addition, the developer ran a month-long marketing campaign for Riverside Views, targeting the UAE as well as key international markets, including India, Japan, China, Russia and the US.

Riverside Views: Blending luxury and nature

Amira Sajwani, MD of DAMAC Properties, commented on the launch: “We are proud to continue listening to our customers’ feedback and bringing truly desired products to the market.

“Riverside Views introduces a collection of stylish one- and two-bedroom apartments housed within eight uniquely themed clusters: Teal, Azure, Marine, Indigo, Royal, Capri, Sun, and Pacific. Designed to connect residents to nature and community, the project features a mix of greenery and water scenery, enhancing a sense of well-being and connection with the environment. We will continue to shape Dubai’s luxury real estate landscape and bring iconic products.”

Premium location

Riverside Views, located approximately 15 minutes from Expo 2020 and Al Maktoum International Airport, promises convenient access to some of Dubai’s key destinations.

The development will offer residents world-class amenities, including five signature dining options, such as Portofino Italian Restaurant, a floating island restaurant, and a spa. A hydroponic farm will also provide fresh greens daily, underscoring the project’s commitment to sustainability and wellness.

For health and wellness enthusiasts, the development includes fitness facilities by the water, a floating chess stage, a floating opera space, essential oil lakes, and ‘Peace Room’s designed to foster mindfulness and creativity.

With one-bedroom apartments starting at Dhs888,000 and two-bedroom apartments from Dhs1,420,000, Riverside Views will offer a 70/30 payment plan.

The project is slated for handover on May 31, 2028.

DAMAC Properties: A year of growth, new announcements

The launch of Riverside Views follows a landmark year for DAMAC Properties, which saw the unveiling of three major community developments: Sun City, DAMAC Islands, and the announcement of DAMAC Riverside.

Building on this momentum, the developer plans to introduce additional projects and deliver significant construction updates throughout 2025, continuing its commitment to shaping the future of Dubai’s luxury real estate sector.

Read: DAMAC partners with MANTRA to tokenise $1bn in real-world assets

Alpha Dhabi Holding has secured a strategic controlling 73.73 per cent stake in the National Corporation for Tourism and Hotels (NCTH) following the sale of assets from Alpha Dhabi Hospitality Holding (ADHH) and Murban Energy Limited to NCTH in exchange for shares.

The deal bolsters NCTH’s position in the hospitality sector, as well as Alpha Dhabi Holding’s investment in both domestic and international luxury hospitality markets.

The transaction includes the transfer of four key hotel properties: two luxury hotels in Abu Dhabi — The St. Regis Saadiyat Island Resort and Al Wathba, a Luxury Collection Desert Resort & Spa — as well as the ultra-luxury Cheval Blanc Randheli in the Maldives and the recently opened Cheval Blanc Seychelles.

Alpha Dhabi’s growing portfolio

By consolidating its hotel assets under the NCTH umbrella, Alpha Dhabi Holding is reinforcing its commitment to growth and diversification.

The transfer of assets increases NCTH’s portfolio to eight hotels, bringing the total to nearly 1,500 keys.

Engineer Hamad Salem Al Ameri, CEO and MD of Alpha Dhabi Holding, commented: “This transaction underscores Alpha Dhabi Holding’s commitment to creating value in high-potential sectors, such as luxury tourism, through a strong presence in the UAE market as well as a growing footprint in the international ultra-luxury segment. The move aligns seamlessly with our long-term strategy to drive impactful and sustainable growth.”

Strategic partnership for luxury tourism growth

Through this partnership, Alpha Dhabi Holding and NCTH aim to capitalise on the growing demand for luxury tourism in the UAE and internationally, contributing to the diversification of the nation’s economy.

The hospitality sector continues to be a vital driver of economic development in the UAE, fuelled by the country’s strategic vision and thriving tourism initiatives.

The acquisition enhances NCTH’s ability to deliver exceptional luxury experiences across a broader global footprint.

Expansion of NCTH’s offerings

In addition to the newly acquired properties, NCTH’s existing portfolio includes the InterContinental Abu Dhabi, InterContinental Residences Abu Dhabi, and the Danat Al Ain Resort, Danat Jebel Dhanna Resort, and Dhafra Beach Hotel. NCTH also offers services in catering, retail, and transportation.

Hany Farag, CEO of NCTH, stated: “The integration of these prestigious assets into NCTH’s portfolio marks a new chapter for the company, positioning it as a leader in the international luxury hospitality segment by building a globally competitive portfolio.”

As artificial intelligence (AI) becomes increasingly integral to modern security systems, it brings both transformative potential and significant ethical questions.

With AI’s power to enhance surveillance, predictive analytics, and real-time decision-making, we must address the complexities of deploying these tools responsibly.

Among the most pressing issues are mitigating AI bias, balancing robust security measures with personal privacy rights, and ensuring that our systems are scalable and ready for future challenges.

Addressing AI bias

AI in security applications can analyse vast amounts of data and identify patterns with remarkable speed, but it’s essential to ensure these tools operate fairly.

AI bias—stemming from the data used to train models or from the design of the algorithms themselves — can lead to unjust outcomes, particularly when it reinforces existing social or systemic biases.

A recent survey by McKinsey & Company reveals that 40 per cent of organisations have experienced issues related to AI bias, underscoring the importance of addressing fairness in AI-driven security systems.. Mitigating bias requires a commitment to diverse, representative datasets and rigorous testing to ensure unbiased performance. Adopting strict standards for data curation, algorithmic transparency, and regular audits can help ensure AI systems contribute to fairness in security rather than perpetuate inequality.

Data privacy: Balancing security with privacy

In the Middle East, the growth of AI-driven security is accelerating, particularly in countries like the UAE and Saudi Arabia, where national security is a high priority. However, the benefits of enhanced surveillance and monitoring must be balanced with the public’s right to privacy.

AI allows for continuous data collection and real-time analysis, but there’s a fine line between necessary oversight and intrusive monitoring.

To maintain public trust, AI-driven security systems must be implemented within frameworks that respect privacy rights, where data is handled securely and accessed only when necessary. The Middle East has already made significant progress in data protection laws, such as the UAE’s Federal Decree Law No 45 of 2021, which emphasises privacy and data security.

Key practices like data anonymisation, encryption, and adherence to regional privacy standards can ensure that AI systems protect personal information while providing robust security. Privacy must remain central to the design of AI technologies in security, ensuring that personal freedoms are preserved alongside advancements in safety.

Scalability and future readiness

AI technology and the landscape of security threats are evolving rapidly, making scalability and future readiness essential features for AI-driven solutions. According to IDC, AI spending in the Middle East and Africa (MEA) region is projected to increase at a compound annual growth rate (CAGR) of 29.7 per cent over the 2022–2026 period, reaching $6.4bn by 2026, driven by increasing demand for scalable, adaptable solutions.

Security systems must be designed to accommodate future updates and expansions without compromising effectiveness or ethical standards. A commitment to continuous improvement, research, and innovation is essential to keep pace with emerging threats and to uphold the standards of responsible AI in security.

In navigating these ethical and practical challenges, it is essential that the industry prioritize fairness, privacy, and adaptability as foundational principles. Responsible AI in security is not just about maximising technological potential; it’s about safeguarding the rights and trust of the public.

As we move forward, the careful balance of these principles will determine the integrity and impact of AI in security, setting a standard for technology that is not only powerful but also just.

The writer is the founder and CEO of Zenith Technologies.

Obtaining health insurance is crucial in the UAE.

Currently, around 60 per cent of healthcare costs are covered by private insurance, with the remaining 40 per cent funded by the government.

“Without private insurance, the government would bear the financial burden of healthcare costs. With the UAE’s growing population and economy, it is essential to have private insurance to share the financial risk,” said Andrea Tithecott, Partner and Head of Regulatory Practice at Al Tamimi & Company.

Tithecott also emphasised that healthcare-related regulations in the UAE are designed to be efficient and foster innovation. However, she noted that these rules are neither better nor worse than those in other countries—they’re simply different, aligning with the region’s goals for rapid growth and modernization.

The regulations are expanding insurance coverage beyond Abu Dhabi and Dubai to the northern Emirates, which will extend coverage to an additional 3 million people by 2030. Insurance is critical for ensuring the sustainability of healthcare in the UAE, she added.

Read: UAE launches basic health insurance for private sector workers, domestic staff

In December 2024, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) announced the launch of a basic health insurance plan for private sector employees and domestic workers. The plan was designed for staff members not already covered by insurance and will extend nationwide starting January 1, 2025.

The UAE government also issued a Federal Decree-Law in December 2024 to regulate medical products, pharmaceutical entities, and the profession of pharmacists. The law applies to all medicines, cosmetics, dietary supplements, healthcare products, medical devices, and genetically modified organisms intended for medical use.

Important: Senior citizens in the UAE get new health insurance plan

Additionally, the law covers controlled and semi-controlled substances, as well as hazardous or toxic materials for human and veterinary use.

Not only does the UAE have laws and regulations regarding medicines and medical products, but it also oversees the use of technology in the healthcare sector.

In 2018, the Department of Health in Abu Dhabi became the first entity in the region to implement a policy for the use of AI (artificial intelligence) in healthcare.

Mohamed Hamad Al Hameli, Acting Undersecretary of the Department of Health Abu Dhabi, stated that applied AI has substantial potential for the healthcare sector. It plays a significant role in improving safety, access, and delivery of healthcare services, while also enhancing evidence-based care, as well as population and patient research.