The US Federal Reserve on Wednesday maintained its benchmark federal funds rate target range at 4.25 to 4.5 per cent, citing signs of moderating economic activity in H1 2025 while noting that inflation remains “somewhat elevated”.

The Federal Open Market Committee (FOMC) reiterated its commitment to achieving maximum employment and 2 per cent inflation over the longer run. The committee acknowledged that “uncertainty about the economic outlook remains elevated” and stated it is “attentive to the risks to both sides of its dual mandate”.

In its statement, the FOMC noted that while swings in net exports continue to affect data, recent indicators suggest a moderation in economic activity growth. The unemployment rate remains low, and labour market conditions are described as solid.

Fed to reduce its holdings of Treasury securities

Looking ahead, the committee stated it will “carefully assess incoming data, the evolving outlook, and the balance of risks” when considering the extent and timing of any future adjustments to the federal funds rate.

The Fed also confirmed it would continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities as part of its quantitative tightening program.

The FOMC emphasised its strong commitment to supporting maximum employment and returning inflation to its 2 per cent objective. It added that it “would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee’s goals,” taking into account a wide range of information, including labor market conditions, inflation pressures and expectations, and financial and international developments.

CBUAE maintains base rate at 4.40 per cent

In other news, the Central Bank of the UAE (CBUAE) has decided to maintain the base rate applicable to the overnight deposit facility (ODF) at 4.40 per cent.

The decision was taken following the US Federal Reserve’s announcement to keep the interest rate on reserve balances (IORB) unchanged.

The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the base rate for all standing credit facilities.

The base rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.

The UAE’s non-oil foreign trade reached a record Dhs1.7tn ($470.3bn) in H1 2025, a 24 per cent increase from the same period in 2024, according to a tweet from Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Sheikh Mohammed stated that this growth was double the figure achieved in the first half of 2021 and represents an “unprecedented boom” with historic growth rates of 59.5 per cent and 37.8 per cent compared to H1 2022 and 2023, respectively.

Sheikh Mohammed attributed the success to the country’s comprehensive economic partnership agreement (CEPA) programme, launched in September 2021.

He noted that the country has concluded 28 such agreements, with 10 now in effect, providing unhindered customs access to markets with nearly 3 bn consumers.

For the first time in the country’s history, non-oil exports contributed 21.4 per cent to total non-oil foreign trade, up from 18.4 per cent in H1 2024.

Non-oil exports surged to Dhs369.5 bn, a growth rate of more than 44.7 per cent compared to the same period in 2024.

Foreign trade: Key destinations for non oil exports

Switzerland was the leading destination for the UAE’s non-oil exports, followed by India, Turkey, and Hong Kong-China.

Trade with CEPA partners amounted to Dhs85.02 bn, a 62.8 per cent increase, and accounted for 23 per cent of the country’s total non-oil exports.

Re-exports also continued to grow, reaching Dhs389 bn, a 14 per cent increase from H1 2024.

Imports of non-oil goods totalled Dhs969.3 bn, a 22.5 per cent increase.

Among the country’s top trading partners, trade with India rose by 33.9 per cent, China by 15.6 per cent, Switzerland by 120 per cent, and Saudi Arabia by 21.3 per cent.

The US ranked sixth among the top 10 trading partners with a 29 per cent growth, and France entered the top 10 list for the first time.

In this interview, Alexandre Ghanem, Cluster Head of Middle East & North Africa (MENA) at BAT, discusses the significance of the new rules, how they align with global harm reduction efforts, and BAT’s plans to launch a new portfolio in the UAE.

What are BAT’s plans for the UAE with this new regulatory framework in mind?

The UAE’s decision to issue regulatory requirements for tobacco-free oral nicotine pouches aligns with BAT’s transformation and our vision of creating ‘A Better Tomorrow’—a smokeless world driven by reducing the health impact of our business.

Tobacco Harm Reduction (THR) as a policy encourages adult consumers who would otherwise continue to smoke to switch to lower-risk alternatives. Adult smokers and nicotine users in the UAE are progressive and open to innovative products. The UAE standard now provides access to high-quality alternatives, which is why BAT plans to introduce a new portfolio of tobacco-free oral nicotine pouches under the VELO brand in the market, in line with our THR ambitions.

How significant is regulating tobacco-free oral nicotine pouches to harm reduction in the UAE?

The UAE continues to lead in regulatory innovation. The Ministry of Industry and Advanced Technology’s (MoIAT) decision to issue a technical standard for tobacco-free oral nicotine pouches reflects a strong commitment to public health and quality control.

It is widely accepted that most harm from smoking comes from inhaling the smoke produced by burning tobacco—not from nicotine itself. Tobacco-free oral nicotine pouches, being smokeless and tobacco-free, present a reduced-risk profile when compared to combustible products, assuming a complete switch from smoking.

How effective has the launch of BAT’s tobacco-free nicotine pouches been elsewhere? Can that success be replicated in the UAE?

Our tobacco-free nicotine pouches are currently available in over 40 countries, with 7.4 million adult consumers globally. VELO products are developed under rigorous stewardship and have been shown to contain 90–99 per cent fewer toxic chemicals compared to cigarette smoke.

The broader category of oral nicotine pouches has contributed significantly to global public health by reducing smoking rates. Sweden is a notable example, where oral nicotine has largely replaced smoking over the past 70 years, resulting in the lowest smoking rate and lung cancer mortality rate in Europe—29.1 deaths per 100,000 compared to the EU average of 66.7 (2020 data).

As of 2024, Sweden’s smoking rate stands at 5.3 per cent, positioning it to achieve the WHO’s ‘smoke-free’ status and putting the country 15 years ahead of the EU’s 2040 target.

Where do tobacco-free oral nicotine pouches fall on the risk continuum compared to cigarettes?

Leading health bodies, including the US FDA, acknowledge that the main causes of smoking-related diseases are the harmful chemicals in tobacco smoke—not nicotine itself.

In 2008, the WHO identified nine key toxicants in cigarette smoke. In VELO products, these are reduced by more than 99 per cent. While smokers may be addicted to nicotine, nicotine itself is not classified as a carcinogen. The Royal College of Physicians in London reinforces this, noting that the real danger lies in the smoke.

If nicotine can be delivered in an effective and acceptable smokeless form, such as oral pouches, most—if not all—of the harm from smoking could potentially be avoided.

Qi, a leading player in Iraq’s fintech sector, has unveiled its groundbreaking third-generation app, SuperQi, in collaboration with Ant International.

Powered by Alipay+ Wallet Tech solutions, SuperQi integrates a digital lifestyle super app with a fully functional digital bank, bringing a new era of financial inclusion and digital services to Iraq.

Since its launch in July 2024, SuperQi has seamlessly fused Western digital banking models with the best practices from Asia’s leading super apps.

Bahaa Abdulhussein, chairman of Qi, said “At Qi, our vision is to build a cashless Iraq by bringing financial services to every corner of our society. SuperQi is a testament to this commitment, simplifying financial transactions and fostering greater inclusivity for all Iraqis.

He added: “Our collaboration with Ant International is not just about advancing digital finance; it represents a transformative leap towards creating a broader digital ecosystem that addresses the needs of the unbanked population.”

Available in Arabic, English, and Kurdish, SuperQi aims to serve millions of Iraqis, offering a comprehensive suite of services that include scan-to-pay, money transfers, bill payments, loans, instalments, mobile recharge, shopping, travel and other payment solutions.

SuperQi also supports Iraq’s expanding financial infrastructure, with over 20,000 point-of-sale merchants and 10,000 cash-out agents.

The app’s accessibility is designed to meet the evolving financial and lifestyle needs of users, targeting over 30 per cent of Iraq’s population by 2026.

Qi has already made significant strides in improving financial inclusion in Iraq. The rate of banked individuals in the country has surged from a mere 5 per cent to nearly 50 per cent in recent years.

By enabling access to banking services through SuperQi, the fintech company aims to further accelerate this shift towards a cashless society.

“With SuperQi, we empower millions of Iraqis with accessible, efficient, and secure solutions, paving the way for a more interconnected, inclusive, and technologically advanced nation,” said Abdulhussein.

Qi focused on an ambitious expansion plan with the launch

With over 11 million cardholders and five million mobile app users, Qi plans to reach over 15 million app users within the next three years.

This is in line with its mission to reshape the way financial transactions occur in Iraq, offering unparalleled convenience for users to take control of their finances.

SuperQi’s impact goes beyond individual users — it is designed to create a thriving ecosystem for businesses as well. The app offers secure and flexible payment solutions, enabling businesses to connect with customers in new, innovative ways.

“The launch of SuperQi is a milestone in Iraq’s journey towards a cashless society,” said Ali Muneam, CEO of Qi. “By bridging the gap for millions who still rely on cash transactions, SuperQi is not just a financial solution, but a key step in modernising our nation’s economy.”

Luay Al Obaidi, chief product officer of SuperQi, emphasised the app’s broad appeal: “SuperQi represents a paradigm shift in how we address the lifestyle and daily needs of our diverse customer base. We invite businesses across Iraq to leverage SuperQi as a platform to deliver their services seamlessly and effectively.”

The app’s integrated features offer everything from digital banking to e-commerce, solidifying its place as a central platform for Iraq’s digital future.

Qi’s collaboration with Ant International has enabled the launch of a powerful financial ecosystem, one that stands poised to unlock new economic opportunities in Iraq’s growing digital landscape.

Committed to a cashless, digital-forward future

From its inception in 2007 to the launch of SuperQi, Qi has been a torchbearer for innovation, leadership, and sustainability. SuperQi signifies a monumental shift in Qi’s vision for fintech’s role in everyday financial management, after being rewarded as the Best Credit Solutions Provider in Iraq, offering a lifestyle super-app providing its users seamless experience all day, every day, for all their payments.

This reflects Qi’s commitment to a bold, cashless, digital-forward future, in line with the visionary goals set by Bahaa Abdulhussein.