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How Arada is expanding its presence in UAE’s luxury property market

Arada’s developments in Sharjah reflect its aim to create integrated communities that promote active living and meaningful connections, says group CEO Ahmed Alkhoshaibi

Neesha Salian
Neesha Salian

04 February, 2025

How Arada is expanding its presence in UAE’s luxury property market
Image: Supplied

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Known for its real estate projects in Sharjah, master developer Arada is expanding its presence in the UAE’s luxury real estate market with Armani Beach Residences at Palm Jumeirah, a project that reflects the company’s focus on quality design and integrated living spaces.

Featuring architecture by Tadao Ando and interiors by Armani/Casa, the development is part of Arada’s broader strategy to deliver thoughtfully designed communities that balance exclusivity with functionality.

In this interview, we discuss the significance of Armani Beach Residences, Arada’s approach to luxury and community development, and the key trends shaping the UAE’s real estate sector.

Arada is known for creating integrated communities like Aljada and Nasma Residences. How does this philosophy shape your developments, particularly in Sharjah?

Arada’s developments in Sharjah, including Aljada, Masaar and Nasma Residences, reflect our commitment to creating integrated communities that promote active living and meaningful connections. These communities feature expansive green spaces, family-centric amenities, and thoughtfully planned infrastructure to enrich residents’ lifestyles.

For example, Aljada offers a wide array of high-end facilities, including a family entertainment zone, a cultural district, three international schools and four hotels.

Nasma Residences offers a 13-acre park and community center, catering to diverse family needs, while Masaar is a forested community with over 50,000 trees, cycling tracks, and a vibrant community hub. This holistic approach ensures Arada’s projects enhance the living experience and set new benchmarks for modern, lifestyle-focused living.

Armani Beach Residences is a significant project for Arada. What excites you the most about this development, and how does it stand out in the Palm Jumeirah area?

Armani Beach Residences at Palm Jumeirah represents a new standard for the high-end Dubai real estate market, helping to redefine the concept of ultra-luxury living in one of the world’s most coveted neighbourhoods. This exceptional development embodies elegance and exclusivity, with architecture by the legendary Tadao Ando and interiors by Armani/Casa.

Limited to just 53 meticulously designed units, it offers a level of exclusivity rarely seen, even on the Palm Jumeirah, which has become a byword for high-end living.

For me, what really stands out about the project is the 90,000 square feet of luxury amenities – including a spa, function room, cigar lounge, movie theatre and landscaped deck area, which is a significant amount for a development of this size.

Beyond creating homes, this project crafts works of art that seamlessly blend iconic design with an unparalleled location, capturing the essence of luxury living.

The collaboration with Armani/Casa and Tadao Ando is unique. How did these partnerships come about, and what distinctive design elements do they bring to the project?

This is the first and only time that Giorgio Armani and Tadao Ando have collaborated on a residential offering. Brought together by Arada, this partnership with Armani/Casa and Tadao Ando stems from our vision to push the boundaries of design excellence. Both were natural choices, given their global reputations for timeless innovation.

Tadao Ando’s signature minimalist architecture blends light, space, and nature to create harmony, while Armani/Casa’s interiors bring unparalleled sophistication and attention to detail. These collaborations ensure that every corner of Armani Beach Residences reflects artistry and refinement.

The presidential suites at Armani Beach Residences offer bespoke luxury. What makes these units so exceptional, and how do they cater to Dubai’s evolving luxury market?

The presidential suites at Armani Beach Residences represent bespoke luxury at its finest, offering an unparalleled opportunity for personalisation. Buyers can collaborate directly with the Armani design team to customise their interiors, ensuring every detail reflects their unique vision. This exclusive experience includes a trip to Milan, where clients engage with designers to select materials, finishes, and furnishings, resulting in a truly one-of-a-kind residence.

Spanning up to 43,830 square feet, these expansive homes feature state-of-the-art amenities and iconic design elements, catering to the discerning tastes of Dubai’s luxury market.

This level of personalisation and exclusivity addresses the evolving demand for residences that transcend traditional luxury, offering a deeply personal and unique living experience.

This approach reflects a broader trend in Dubai’s real estate market, where affluent buyers seek homes that not only provide opulence but also resonate with their identity and lifestyle, setting new standards in ultra-luxury living.

With Arada’s growth in the UAE, especially in Sharjah, what trends do you see emerging in the real estate market over the next few years? How do you see Sharjah’s rising role as a property lifestyle destination akin to the other emirates?

We see a continued shift towards lifestyle-driven developments that prioritise sustainability and wellness. Sharjah is witnessing the rise of large-scale master developments that accommodate family-friendly, community-focused lifestyles.

These projects, such as Masaar and Aljada, emphasise connectivity, green spaces, and integrated amenities, catering to the evolving needs of modern residents.

Arada is also leading this transformation by introducing branded residences like Vida Residences Aljada, Rove Home Aljada, and Anantara Sharjah Residences, which blend global luxury with Sharjah’s community-centric ethos.

These developments further position Sharjah as a rising lifestyle destination, complementing Dubai’s global luxury focus by offering sustainable, value-driven living. This shift is redefining the UAE’s real estate market, with Sharjah emerging as a key player in the region.

How does Arada balance luxury developments with community-focused projects, and how do elements like education, retail, and hospitality fit into your broader vision?

Arada’s projects cater to diverse needs while ensuring community integration. Aljada, Sharjah’s largest real estate project, will accommodate a population of up to 100,000 and it’s always been important that there is a diverse residential mix with products to support a wide range of budgets and lifestyle choices.

Aljada’s centerpiece, Madar, designed by Zaha Hadid Architects, offers sports, cultural, and entertainment amenities alongside Sharjah’s largest business park, Arada Central Business District. Aljada’s scale demands meticulous urban planning for seamless connectivity.

Masaar, in contrast, focuses on forest living, with 70,000 trees being planted by its 2026 completion. Similarly, Jouri Hills at Jumeirah Golf Estates in Dubai features 294 luxury townhouses and villas, blending premium living with natural settings.

Arada integrates lifestyle essentials like community centres, active living facilities, schools, and healthcare. More schools, healthcare facilities, and retail offerings are in the pipeline across all developments.

The SIS-Aljada school reflects this focus, as does East Boulevard, Sharjah’s premier retail and dining hub.

With regard to the luxury end of the market, the Anantara Sharjah Resort delivers premium hospitality, while the W Residences at Dubai Harbour showcases waterfront opulence.

These projects balance high-end living with thoughtful community planning. By combining these elements, we create thriving communities that prioritise both luxury and everyday convenience.

All our residential products benefit from the fast-growing array of complementary brands, which support our goal to deliver spaces where people can live healthier, happier and more fulfilling lives.

These include the four gym brands under our fitness and wellness division, three of which were recently purchased to create a vertical that is now valued at Dhs1bn.

Health and wellness has become a key focus area for us, and we’ll be announcing the launch of new companies that tap into this rapidly growing market segment early this year.

Sustainability is becoming more important in real estate. What steps is Arada taking to integrate sustainable practices into your projects, particularly moving forward?

At Arada, sustainability drives our vision of creating spaces where people connect to live happier, healthier lives.

Our commitment to the environment is evident in our communities, which contain over 100,000 trees offering improved air quality and a more sustainable living environment. Our natural resource management expertise extends to advanced water conservation and waste management techniques, as well as investment in cutting-edge treatment technology.

Energy-efficient designs, sustainable construction practices and smart home technologies deployed in every Arada home reduce energy consumption and lower carbon emissions.

Our partnership with the Ministry of Climate Change and Environment, Manbat, helps to bring local consumers and Emirati farmers together, helping with the UAE’s national food security goals.

At the same time, we prioritise social responsibility by fostering a diverse and inclusive work environment, and Arada was recently recognised as the top real estate workplace in the UAE by Great Place to Work.

Our company and community calendars feature events that foster engagement and skill-building and offer emerging talent platforms to hone their skills, build confidence and connect with others.

The Arada Foundation works with partners such as The Big Heart Foundation and UNHCR on initiatives both at home and abroad, including the internationally recognised Home for a Home campaign.

Through our combined focus on environmental stewardship and social wellbeing, we aim to create a positive, lasting impact and contribute to a sustainable and equitable future for all.

Where do you see Arada in the next five to 10 years, and what will its impact on the UAE’s real estate sector?

As a company, Arada has grown fast in the nearly eight years since we were founded. But we intend to keep up this pace of growth in the coming years. We’ve made no secret of our plans to expand internationally and announced our launch in Sydney (in August 2024) with a Dhs6bn pipeline of projects.

We also continue to look at key markets in Saudi Arabia, the UK and Italy and I anticipate that Arada will be operational in all of those markets in five years’ time.

We will also be looking to ensure that our revenue streams remain diversified by continuing to build out our brand portfolio and investing in our verticals. In particular, I see hospitality and entertainment as well as fitness and wellness, play an important part in our future.

At the same time, Arada’s legacy will be defined by maintaining exceptional communities that set new standards in any segment of the real estate industry by enriching lives through meaningful, well-designed spaces.

All our communities, all our brands and all our verticals will continue to emphasise an active and wellness-driven lifestyle that puts people first.

Modon Holding to acquire Arena Events Group

Arena Events group, which operates in over 10 countries including the US, UK, and Saudi Arabia, has been a key player in some of the world’s largest sporting events

Neesha Salian
Neesha Salian

04 February, 2025

Modon Holding to acquire Arena Events Group
Image: Getty Images/ Supplied

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Modon Holding, the Abu Dhabi-based investment firm, has reached an agreement to acquire Arena Events Group, a leading provider of temporary infrastructure and event solutions.

The deal, which includes the purchase of Theta Bidco, Arena’s parent company, is set to enhance Modon’s portfolio and deepen its presence in the global events sector.

The acquisition is expected to significantly strengthen Modon’s capabilities in delivering large-scale, integrated services for high-profile events.

Arena, which operates in over 10 countries including the US, UK, and Saudi Arabia, has been a key player in some of the world’s largest sporting events, such as the 2024 Paris Olympics, Formula 1 races across multiple cities, and Wimbledon.

Arena is also known for constructing modular structures, including a stadium for the 2024 T20 World Cup in New York.

Arena has built a strong reputation within the industry. The company has longstanding partnerships with organisations such as the PGA of America and LIV Golf, providing infrastructure for major golf tournaments annually.

Image: Supplied

Strategic expansion for Modon

The acquisition further extends Modon’s strategic push into international markets. Jassem Mohammed Bu Ataba Al Zaabi, chairman of Modon Holding, described the move as a key step in the firm’s long-term growth strategy, particularly in expanding its global footprint. “Arena’s leadership in the events sector, with a focus on large-scale infrastructure and services, positions Modon for continued growth and diversification in global markets,” Al Zaabi said in a statement.

Bill O’Regan, CEO of Modon, echoed the sentiment, noting that the acquisition would add new dimensions to the company’s existing event services.

“Arena brings a wealth of experience and a strong global client base that will enable us to expand into new markets, particularly in North America, where Arena has a significant presence,” O’Regan said.

A major step into North America

The acquisition also marks Modon’s first major foray into North America, where Arena has its largest revenue base and a workforce of more than 1,000 employees. The US is a key growth area for Arena, which has provided infrastructure for several high-profile events, including Formula 1 races in Miami and Austin, as well as major sports and entertainment events across the country.

The global events sector is experiencing a boom, with increasing demand for high-quality infrastructure and hospitality services at live events. The partnership between Modon and Arena is well-positioned to capitalize on this trend, particularly with the anticipated rise in live event attendance over the coming years.

Syed Basar Shueb, CEO of International Holding Company (IHC), which has owned Arena for the past three years, expressed confidence in Modon’s ability to leverage the acquisition’s synergies. “Modon is the ideal partner to take Arena’s capabilities to the next level, particularly in the growing temporary infrastructure and event structure markets,” Shueb said.

The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close by Q1 2025.

In other news, in December 2024, Modon Holding completed the acquisition of 100 per cent of La Zagaleta, the owner of the ultra-luxurious La Zagaleta residential estate in Spain’s Costa del Sol.

The acquisition marks a significant step in Modon Holding’s international expansion strategy, further solidifying its presence in Europe’s competitive luxury real estate market.

Don’t miss Gulf Business’ next real estate panel

The panel features some of the most prominent names in UAE real estate

Nida Sohail
Nida Sohail

03 February, 2025

Don’t miss Gulf Business’ next real estate panel
Image credit: Gulf Business/Supplied photo

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Fancy a serving of fresh, informative ‘real estate insights’ for breakfast?

Look no further than the GB Business Breakfast Briefing: Real Estate Edition, happening on February 20, 2025.

Register for the event at the earliest here

For more information about the event, be sure to read here

Taking place at The Westin Mina Seyahi Dubai, this event will gather industry leaders, investors, and stakeholders to share valuable insights into the UAE’s real estate landscape. The panel discussion, themed “Breaking Ground: The UAE Real Estate Outlook,” will provide attendees with in-depth knowledge on:

  • The forces shaping the real estate industry in the UAE
  • Insights into current trends
  • An overview of future developments and opportunities
  • Key drivers of the industry across Dubai, Abu Dhabi, and Ras Al Khaimah

The panel features some of the most prominent names in UAE real estate, carefully selected to provide attendees with thought-provoking and valuable insights into the industry.

Image credit: Gulf Business/Supplied photo

Speakers Include:

  • Daniel Hadi, CEO Middle East, Engel & Völkers
  • Firas Al Msaddi, CEO and Founder, fäm Properties
  • Taimur Khan, Head of Research & Development, JLL
  • Fibha Ahmed, Vice President of Property Sales, Bayut
  • Tatiana Veller, Managing Director, Stirling Hospitality Advisors

Representatives from Grohe and Anax Developments will also be present at the event.

In collaboration with the Game Changers Awards, the panel discussions will not only provide attendees with a comprehensive understanding of the UAE real estate sector but also serve as a networking and collaboration platform.

This is an event no industry professional in the region should miss!

When: 20/02/2025, 8:00 AM
Where: The Westin Mina Seyahi, Dubai

Image credit: Gulf Business/Supplied photo

AGENDA

08:00 AM: Registration & Breakfast
09:00 AM: Welcome Speech by Manish Chopra, Publisher, Gulf Business
09:05 AM: Chair’s Opening Remarks by Gareth van Zyl, Editor, Gulf Business
09:20 AM: Keynote Speech

09:30 AM: Panel Discussion 1 – Will Dubai’s Property Boom Continue?

– An in-depth analysis of Dubai’s real estate surge. What’s fueling the boom, and what are the potential challenges and opportunities for investors and developers over the next 5 to 10 years?

10:00 AM: Q&A
10:15 AM: Keynote Speech

10:20 AM: Panel Discussion 2 – Spotlight on Ras Al Khaimah: The New Frontier

– Exploring how gaming and tourism are catalyzing Ras Al Khaimah’s real estate growth. A focus on untapped investment opportunities, emerging hotspots, and how the emirate is differentiating itself from the broader UAE market.

10:50 AM: Q&A
11:05 AM: Keynote Speech

11:15 AM: Panel Discussion 3 – Focus on Abu Dhabi’s Real Estate Opportunities

– An analytical exploration of the factors driving Abu Dhabi’s property market in 2025. This discussion will cover the uptick in foreign investments, government policies enhancing transparency, and the rise of sustainable developments in the emirate.

11:45 AM: Q&A
11:55 AM: Game Changers Awards Ceremony
12:15 PM: Audience Q&A and Closing Remarks

Here’s what Saudi consumers will continue to spend on in 2025: survey

Spending intentions in Saudi Arabia show a six-percentage-point net positive trend, contrasting with contractions in the US and Europe, reveals the AlixPartners survey

Gulf Business
Gulf Business

03 February, 2025

Here’s what Saudi consumers will continue to spend on in 2025: survey
Image: Getty Images/ For illustrative purposes

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Saudi Arabia’s consumer market is defying global economic trends, showing resilience in the face of rising costs and shifting patterns in discretionary spending, according to the latest 2025 Global Consumer Outlook report by AlixPartners, the global consulting firm.

Despite broader global trends of reduced consumer spending in regions like the US and Europe, Saudi Arabia’s consumer sentiment remains strong, with robust spending projections for 2025.

The report, which surveyed over 15,000 consumers across nine countries, highlights a six-percentage-point net positive shift in Saudi spending intentions, positioning the kingdom as a notable outlier in global consumer behaviour.

“Saudi Arabia’s retail landscape is undergoing a profound transformation,” said Karl Nader, partner and MD at AlixPartners. “While consumer confidence remains evident in categories like dining out and entertainment, rising costs are reshaping shopping behaviours. Consumers are prioritising value, exploring discount options, and balancing essentials with discretionary spending. This evolution will compel operators to rethink their engagement strategies and innovate to meet the changing expectations of the Saudi shopper.”

The findings underscore Saudi consumers’ commitment to both value and experiences, even as they adopt more cost-efficient purchasing strategies.

Spending on essential categories, including groceries and clothing, remains consistent while spending in discretionary sectors shows notable growth — particularly among younger demographics.

Key findings in Saudi consumer spending

Grocery and clothing categories: Spending on groceries (56 per cent, up from 54 per cent last year) and clothing (43 per cent, up from 40 per cent last year) shows a clear trend toward value-driven consumption. Consumers are increasingly opting for entry-price ranges and private-label products as they seek affordability in response to rising costs.

Dining out and entertainment: Dining out remains a polarising category. One-third of Saudi consumers plan to spend more on dining out, while globally, 34 per cent of consumers plan to spend less.

Additionally, 33 per cent of Saudi consumers intend to increase their spending on entertainment outside the home, compared to just 19 per cent globally. This reflects the kingdom’s robust appetite for new experiences, with younger shoppers (18-34 years) driving growth in these areas.

Rise of discounters: Discount-driven retailers are gaining ground, challenging established players in both the grocery and fashion retail sectors.

These retailers are reshaping consumer expectations and shopping behaviour, particularly among value-seeking consumers.

Shift toward local experiences: Saudi consumers remain eager to travel, but affordability and the growth of domestic tourism offerings have led to a surge in staycations and local experiences. The desire for international travel is strong, yet many are now opting for more budget-friendly, local alternatives.

Digital integration in shopping: Digital technologies such as AI-driven product recommendations, mobile payment solutions, and delivery services are increasingly integrated into Saudi consumer shopping experiences, reflecting the growing demand for convenience and seamless digital interactions.

Contrasting global trends

The report notes that, while Saudi Arabia and other emerging markets such as the UAE and China show resilience, spending in the US and Europe continues to decline.

Consumers in these regions are grappling with inflation and economic uncertainty, with spending projections for 2025 expected to be even more restrained than this year.

“Consumers now have more choices than ever before,” Karl Nader concluded. “Established operators will need to innovate and reimagine their approach to thrive in this dynamic environment. Success will come to those who prioritise value-driven offerings, leverage digital tools, and adapt swiftly to meet the changing demands of Saudi shoppers.”

Saudi Arabia’s consumer market is expected to maintain its growth trajectory into 2025, with a clear shift towards value-driven consumption, growing demand for experiences, and the continued adoption of digital shopping conveniences.

With younger consumers leading the charge, businesses will need to adapt to a rapidly changing landscape, balancing the demands for both affordability and enhanced experiences.

15 Years of Häcker Kitchens by Innerspace: Crafting Distinctive Kitchens with German Precision

Leading the evolution of high-end kitchen design in the UAE

Gulf Business
Gulf Business

03 February, 2025

15 Years of Häcker Kitchens by Innerspace: Crafting Distinctive Kitchens with German Precision
Image credit: Supplied

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Häcker Kitchens by Innerspace: Redefining High-end Kitchens in the UAE: Häcker Kitchens celebrates 15 years in the UAE, marking a decade and a half of excellence in high-end kitchen design. Dubai’s high-end kitchen industry has undergone a remarkable transformation during this time, with Häcker Kitchens by Innerspace leading the way. As Innerspace commemorates this milestone, the company continues to shape the future of kitchen design with innovation, precision, and excellence. Founded in Germany in 1898, Häcker Kitchens has built a legacy of quality and craftsmanship, and since entering the UAE market, the brand has consistently set new benchmarks. Samir Ranavaya, the founder & CEO of Innerspace, has been instrumental in this journey, ensuring that every innovation aligns with his vision for perfection.

How it all began: Visionary journey to the UAE

The decision to bring Häcker Kitchens to Dubai was driven by Ranavaya’s deep appreciation for art, architecture, and design. Samir Ranavaya gauged an opportunity to elevate the high-end kitchen industry by introducing a showroom experience unlike any other. Inspired by the immersive kitchen retail concepts in the UK, the Dubai flagship store on Sheikh Zayed Road became a pioneering space where clients could engage with expert designers, explore 3D presentations, and immerse themselves in a curated selection of materials. This innovative approach quickly set a new benchmark in the industry, thanks to Samir’s relentless pursuit of perfection.

Excellence in high-end kitchen design

Innerspace has distinguished itself through an unwavering commitment to quality and perfection. Samir Ranavaya has instilled a meticulous approach that oversees every detail across more than 1,000 steps, from design and procurement to manufacturing and installation. This dedication to refinement and continuous improvement has cemented Innerspace’s reputation as a market leader within just two years of its inception, a testament to Samir’s vision for uncompromising excellence.

Culture of Integrity, Discipline, and Knowledge

At the heart of Innerspace’s success lies a high-performance culture built on integrity, discipline, and a commitment to continuous learning. Samir Ranavaya’s leadership is defined by honouring commitments, fostering transparency, and making decisions that benefit all stakeholders. Striving for perfection is not just an aspiration but a disciplined practice, reinforced by his relentless pursuit of knowledge and an openness to learning from every experience. His ability to lead by example has shaped a company culture that values continuous growth and refinement.

Blending German Engineering with Nature-Inspired Design

Häcker Kitchens expertly combines German precision with nature-inspired aesthetics, redefining kitchen spaces with the perfect balance of functionality and timeless beauty. Rooted in meticulous craftsmanship, every design seamlessly integrates cutting-edge technology with organic textures, ensuring an effortless fusion of innovation and natural elegance.

Samir Ranavaya’s vision has played a pivotal role in transforming the kitchen from a purely utilitarian space into the heart of the home—a place where warmth, sophistication, and tranquillity come together. By incorporating elements such as sustainable wood finishes, stone worktops, and ambient lighting, Häcker Kitchens creates an inviting atmosphere that reflects both modern sensibilities and nature’s harmony.

Beyond aesthetics, each kitchen is engineered for superior performance, featuring intelligent storage solutions, ergonomic designs, and state-of-the-art appliances that enhance the cooking experience. This commitment to blending precision with artistry ensures that every Häcker Kitchen is not just a statement of refined taste but a seamless extension of contemporary living.

Two Decades of Experience-Shaping the Future

With nearly 20 years in the high-end kitchen industry, Ranavaya continues to innovate and inspire. Samir Ranavaya’s journey has been one of continuous growth, fuelled by a philosophy of always seeking better solutions, questioning the status quo, and embracing new possibilities. His ethos is centered on the belief that nothing is impossible — it is simply a matter of discovering how to achieve it.

Philosophy Rooted in Perfection and Innovation

Drawing inspiration from ancient wisdom and a blend of modern and traditional principles, Innerspace operates with a philosophy of striving for the greater good. Samir Ranavaya has cultivated an environment of relentless improvement, where every process, design, and service is fine-tuned to deliver the highest standards of quality. His dedication to perfection has become the foundation upon which the company thrives.

A Day in the Life of a Visionary Leader

For Samir Ranavaya, the driving force behind Häcker Kitchens by Innerspace, each day is a carefully balanced blend of strategy, communication, and personal well-being. Adhering to the 8:8:8 rule—eight hours of sleep, eight hours of work, and eight hours dedicated to family, friends, and personal growth—ensures a structured and fulfilling lifestyle. Conversations with teams, vendors, and clients revolve around innovation and continuous progress, reinforcing Ranavaya’s mission to redefine excellence in high-end kitchens.

Vision for the Future of High-End Kitchens in the Middle East

Häcker Kitchens celebrates 15 years in the UAE, a milestone that reflects its enduring commitment to excellence in high-end kitchen design. As Innerspace marks this achievement, Samir Ranavaya remains dedicated to pushing the limits of design, functionality, and craftsmanship. By embracing the latest innovations while staying true to its core values, Häcker Kitchens by Innerspace is poised to continue shaping the future of high-end kitchens in the UAE for years to come.

Trump tariffs: Stocks slump, trade war fears triggered

The US dollar shot to a record peak against the Chinese yuan in offshore trading

Reuters
Reuters

03 February, 2025

Trump tariffs: Stocks slump, trade war fears triggered
Image credit: Getty Images

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Asian stock markets slumped on Monday, February 3, and European and US equity futures pointed sharply lower after President Donald Trump’s tariffs on Canada, Mexico and China triggered fears of a broad trade war and a hit to global growth.

The US dollar shot to a record peak against the Chinese yuan in offshore trading, its highest against Canada’s currency since 2003 and the strongest against the Mexican peso since 2022.

Trump administration: How has it affected crypto markets

Stocks in Hong Kong, which include listings of Chinese companies, fell 1.1 per cent upon reopening from Lunar New Year holidays. Mainland Chinese markets resume trading following the holidays on Wednesday.

Duties imposed on Canada and Mexico

Trump slapped Canada and Mexico with duties of 25 per cent and China with a 10 per cent levy at the weekend, calling them necessary to combat the flow of migrants and fentanyl into the US.

Read: Dollar gains as Trump floats tariffs, threatens ‘taking back’ Panama Canal

Canada and Mexico immediately vowed retaliatory measures, and China said it would challenge Trump’s levies at the World Trade Organization.

The tariffs, outlined in three executive orders, are due to take effect at 12:01 am ET (0501 GMT) on Tuesday.

Ushering of a global trade war

Trump’s move was the first strike in what could usher in a destructive global trade war and drive a surge in US inflation that would “come even faster and be larger than we initially expected,” said Paul Ashworth of Capital Economics.

Important: Trump calls for $1tn Saudi investment, lower oil prices

A model gauging the economic impact of Trump’s tariff plan from EY chief economist Greg Daco suggests it would reduce US economic growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” at home.

Barclays strategists previously estimated that the tariffs could create a 2.8 per cent drag on S&P 500 company earnings, including the projected fallout from retaliatory measures from the targeted countries.

Fluctuations in currencies

The US currency climbed as much as 2.8 per cent to 21.2547 Mexican pesos, the highest since March 2022, and rose 1.4 per cent to a level not seen since 2003.

The euro dropped as much as 2.3 per cent to $1.0125 – the lowest level since November 2022. At the weekend, Trump said tariffs on Europe will “definitely happen”.

US two-year Treasury yields rose as much as 3.6 basis points to 4.274 per cent, a one-week high, on concerns tariffs will stoke US inflation and delay Federal Reserve interest-rate cuts.

Two-year Japanese government bond yields rose in sympathy, reaching their highest levels since October 2008.

Leading cryptocurrency bitcoin tumbled to as low as $91,439.89, a three-week trough.

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