The Central Bank of the UAE (CBUAE) thas announced its decision to maintain the base rate applicable to its overnight deposit facility (ODF) at 4.40 per cent. This move follows the US Federal Reserve’s announcement to keep the interest rate on reserve balances (IORB) unchanged.

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

This decision by the CBUAE directly stems from the UAE dirham‘s peg to the US dollar, which necessitates mirroring the monetary policy actions of the US Federal Reserve to ensure currency stability and consistent financial conditions.

US Fed maintains base rate

The Federal Reserve decided yesterday to maintain its target range for the federal funds rate at 4-1/4 to 4-1/2 per cent.

This stance by the US central bank is taken as it assesses an economic outlook indicating continued solid expansion despite swings in net exports, a low unemployment rate, and generally solid labor market conditions, even with inflation remaining somewhat elevated.

The Federal Reserve, committed to supporting maximum employment and returning inflation to its 2 percent objective over the longer run, continues to monitor incoming data, the evolving outlook, and the balance of risks.

The CBUAE’s base rate, anchored to the US Federal Reserve’s IORB, serves as a key indicator of the UAE’s general monetary policy stance.

It also establishes an effective floor for overnight money market interest rates across the UAE, ensuring the transmission of monetary policy within the national financial system.

In the UAE, what was once a routine errand is now a high-speed, tech-powered experience built around personalisation, speed, and instant gratification. With $38.29bn in revenue generated in 2024 — and a projected CAGR of nearly 5 per cent through 2028 — the e-grocery industry isn’t just growing, it’s transforming.

From AI-driven inventory to delivery that’s faster than you can write a list, this shift is powered by innovation that’s redefining how, when, and why we shop.

The popularity of e-grocery is perhaps the most telling sign of change. With the segment hitting $1.14bn in 2024, commanding 17 per cent of the nation’s total e-commerce market, it’s clear this market is reshaping the future of retail.

Growing at a staggering CAGR of 25.4 per cent, its ascent promises a $2.82bn milestone by 2028.

These figures are more than just numbers, they highlight a radical shift in consumer shopping habits towards the virtual cart and checkout.

Consumer behaviour shifts: A new demand for speed and personalisation

The landscape of consumer demand is undergoing a metamorphosis, highlighting the need for speed, personalization, and value. This transformation is symbolized in the rise of quick commerce — our arena of grocery and retail—where the expectation isn’t merely for same-day delivery but delivery that races the clock, within minutes.

Illustrative of this shift, our innovative talabat Mart stores have effectively halved delivery times, catalysing a remarkable surge in customer interaction, with order frequencies in these locales climbing by 1.3 times.

This evolution amplifies the essence of speed in magnifying customer engagement within digital retail.

The rhythm of consumer habits is also shifting, with peak hours between 5pm and 9pm driving nearly 40 per cent of all grocery and retail orders — a clear signal of the need for precise capacity planning and real-time inventory updates to masterfully navigate high-demand windows. But the story doesn’t end there.

Late-night orders are carving out their own space in this evolving dynamic, with categories like snacks and beverages witnessing an impressive average of 48 per cent growth year-over-year.

The “nocturnal” demand is rewriting the script on traditional shopping and what it means to shop on your own time, stretching the boundaries of convenience deep into the off-hours.

The modern consumer isn’t just participating in the marketplace, they’re seeking a dialogue with it.

Personalisation has become the drumbeat to which modern consumer behaviour marches, with personalised item-level deals boasting over 30 per cent higher click-through rates than their generic counterparts, given the consumers’ strong preference for offers tailored to their unique tastes.

Further reflecting this personalised journey is the uptick in search-led sessions, as consumers make bespoke and health-conscious choices.

Searches for niche and lifestyle staples like matcha, vegan cheese, and protein snacks paint a picture of a consumer base that’s not just buying, but curating their carts with intentionality, carving a shopping experience that’s not just satisfying but also markedly theirs.

The rise of private labels in the digital grocery and retail space

The rise of private labels is transforming the very definition of value in the grocery and retail space, blending affordability with quality in a way that deeply resonates with modern consumers. Since debuting our first offerings in the UAE in November 2023, we’ve scaled to 351 SKUs across seven countries by April, achieving a 1387 per cent year-over-year growth.

This trajectory reveals a clear consumer preference for products that deliver a seamless harmony of cost and craftsmanship.

Private labels aren’t merely a product line — they’re the new narrative of value, innovation, and trust in retail.

The strategic expansion of our food category signals a decisive step to align with evolving consumer demand.

Currently, with 89 per cent of our portfolio composed of non-food items, this shift reflects a targeted effort to diversify and meet the growing appetite for food-related offerings.

Leveraging technology for operational excellence

The integration of advanced technology has been transformative, solidifying our leadership in the grocery and retail industry.

AI-driven computer vision enables real-time stock accuracy, minimising out-of-stock scenarios through predictive replenishment, while IoT systems in dark stores ensure consistent product quality without physical oversight.

These innovations have culminated in a 98 per cent order fulfillment rate, reducing errors and delays, and enhancing overall customer satisfaction.

Today, grocery shopping has gone from being a mundane chore to a futuristic journey powered by cutting-edge technology such as AI, ML, and IoT. These innovations do more than streamline operations; they revolutionise the consumer experience by weaving convenience, accuracy, and promptness into the very fabric of service.

The industry can leverage these technologies to not only keep pace with modern demands but also foster connections characterised by deep trust and shared benefits.

The writer is the chief retail officer at talabat.

Oracle and xAI have announced a partnership that will bring xAI’s Grok models to Oracle Cloud Infrastructure (OCI), enabling enterprise customers to deploy the advanced generative AI models via OCI’s Generative AI service.

The integration allows businesses to harness Grok’s capabilities, ranging from content creation and research to complex business process automation, using Oracle’s high-performance, scalable AI infrastructure. xAI will also use OCI to train and run inferencing for its next-generation Grok models, including the recently launched Grok 3.

“Grok 3 represents a leap forward in AI capabilities, and Oracle’s advanced data platform will accelerate its impact on enterprises,” said Jimmy Ba, co-founder of xAI. “This collaboration between xAI and Oracle is set to redefine enterprise-grade AI.”

Grok 3 supported by supported by OCI’s enterprise-grade infrastructure

Founded in 2023, xAI has emerged as a leading player in artificial intelligence, with Grok 3 demonstrating strong performance in reasoning, mathematics, coding, and cross-domain understanding. The models are trained using large-scale reinforcement learning and are supported by OCI’s enterprise-grade infrastructure, which prioritises data governance, management, and zero data retention processing for enhanced security.

“By bringing xAI’s cutting-edge Grok models to our customers, we are expanding the possibilities of AI in the enterprise,” said Greg Pavlik, EVP of AI and Data Management Services at Oracle Cloud Infrastructure. “This partnership underscores our commitment to offering organisations greater flexibility and access to the most advanced AI technologies.”

Oracle’s AI infrastructure — including bare metal GPU instances — supports a broad range of demanding AI workloads such as generative AI, computer vision, and recommendation engines. Thousands of enterprises are already deploying Oracle’s AI offerings to drive innovation and boost productivity.

Telecom provider Windstream is among the early adopters exploring xAI’s multimodal models via OCI to improve operational workflows. “We think there could be real advantages to leveraging Grok models via OCI Generative AI service, integrating language comprehension and reasoning to propose meaningful actions,” said Kaushik Bhanderi, SVP at Windstream.

The announcement further strengthens Oracle’s AI ecosystem and expands xAI’s reach into enterprise applications through a secure, scalable platform.

Versuni, a global leader in domestic appliances, is dedicated to transforming houses into homes through innovative, sustainable, and consumer-centric products. It develops, manufactures, and markets Philips-branded home appliances under a trademark license from Royal Philips.

Carrying forward Philips’ 130-year legacy through innovation, Versuni brings trusted, high-quality solutions tailored to the evolving needs of consumers. The company’s scale is significant, operating in over 100 countries with more than 6,000 employees, with global sales exceeding EUR3bn.

This formidable market presence is supported by a diverse portfolio covering kitchen appliances, coffee machines, garment care, floor care and air care—featuring globally recognised and beloved brands, including Philips, Saeco, Senseo, Gaggia, L’OR, Preethi, and Philips Walita.

For the MENA region, Philips stands as the main brand, anchoring Versuni’s very strong geographical footprint. The company holds a powerful position in the small domestic appliances market across MENA, attributed to its wide array of product categories that effectively cater to diverse consumer needs.

This regional focus underscores Versuni’s commitment to understanding and serving local markets—a commitment that Milena Elmasoglu, Regional President of the Middle East, Turkey and Africa Region at Versuni, continues to champion across MENA.

At its core, Versuni’s purpose is to elevate the home experience, believing that a home is more than just a physical space—it’s a hub of comfort, wellbeing, and personal expression. This vision drives the creation of smart, sustainable, and beautifully engineered appliances designed to enhance daily life.

Versuni’s innovation is underscored by its ownership of over 900 patents across its product categories. Sustainability is intrinsically woven into Versuni’s operations. Versuni is actively committed to reducing its environmental footprint, including efforts to incorporate more recycled materials into its products and developing circular business models that champion repair and reuse.

This dedication extends to sustainable packaging solutions, utilising 100 per cent recycled and 100 per cent recyclable paper.

Beyond product design, Versuni emphasises supply chain responsibility, partnering with suppliers who uphold high standards for working environments and employee welfare.

Versuni’s focus on consumer needs and innovation, supported by a strong commitment to sustainability, strengthens its position as a forward-thinking and iconic company in the MENA region.

As Europe accelerates its green transition, the European Commission has laid out an ambitious roadmap that positions nuclear energy as a central pillar of its long-term decarbonisation strategy.

According to the latest Nuclear Illustrative Programme (PINC) released by the commission, the European Union (EU) will require EUR241bn in nuclear investments by 2050 to meet its energy and climate commitments under the REPowerEU Plan and the Clean Industrial Deal.

The report underscores a critical message: nuclear power is not fading — it’s evolving. While public opinion and national energy policies remain divided, the EU’s projections signal a net increase in nuclear capacity, from 98GW today to 109 GW by 2050, with an upper-range scenario anticipating up to 144GW.

Nuclear energy a bedrock

Currently accounting for 23 per cent of the EU’s electricity mix, nuclear energy remains a bedrock of low-carbon power generation.

“To truly deliver the clean energy transition, we need all zero- and low-carbon energy solutions. Nuclear energy has a role to play in building a resilient and cleaner energy system. Ensuring the necessary framework conditions will allow the EU to keep its industrial leadership in this sector while also upholding the highest safety standards and responsible management of radioactive waste,” said Dan Jørgensen, Commissioner for Energy and Housing, in a statement.

Yet, the landscape is fragmented: countries like Germany and Belgium are phasing out nuclear, while others — such as France, Hungary, and Finland — are doubling down on next-generation reactors and small modular reactors (SMRs).

The PINC report acknowledges this diversity but calls for greater alignment and infrastructure investment to realise the collective benefits of nuclear.

EU aims to be decarbonised by 2040

Looking ahead, over 90 per cent of Europe’s electricity is expected to be decarbonised by 2040. Achieving this milestone, the commission argues, will require nuclear to complement intermittent renewables like wind and solar by offering stable baseload power.

As energy demand rises with the electrification of transport, heating, and industry, the resilience of nuclear becomes even more vital.

However, the scale of investment required is daunting. To bridge the funding gap, the commission urges a blended financing model that leverages both public and private capital, coupled with risk-mitigation mechanisms to improve investor confidence.

These could include loan guarantees, state aid frameworks, and EU-backed financial instruments tailored to large-scale nuclear projects.

While the debate over nuclear’s role in a clean energy future continues, the EU’s latest projections make one thing clear: without nuclear, Europe’s path to net zero will be longer, costlier, and less secure.

As the bloc confronts geopolitical instability, energy price volatility, and climate urgency, the commission’s blueprint stakes a bold claim: a decarbonised Europe will be part nuclear-powered — or not at all.

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