The Australian Dollar (AUD) Exchange Rate was softer against the United Arab Emirates Dirham (AED) on Thursday as positive comments made by the Vice President and Prime Minister of the Arab nation and strong real estate transactions continued to support.
The Australian Dollar had initially made gains against the AED due to the release of positive manufacturing data out of China.
Those gains eased throughout the course of the European session as support for the AED improved.
At the start of the week Sheikh Mohammed bin Rashi Al Maktoum told a delegation of businessmen visiting Dubai that the economy of the UAE was performing robustly and is showing signs of impressive growth compared to the slower global economic recovery. Sheikh Mohammed also added that the ongoing development of Dubai has made the city the economic capital for more than two billion people.
The UAE currency found further support on Thursday after a report released by the Dubai land department (DLD) announced tha the total amount of real estate transactions in the emirate exceeded the AED 113 billion level in the first six months of the year.
‘The Dubai Real Estate market has become the focus of attention for an increasing number of investors from around the world. This interest can be attributed to several reasons, most importantly the renewed confidence in the Dubai market after the city’s winning bid to host World Expo 2020, Added to this optimism is the strengthening solvency of many major companies in the market.
‘The overall result is that the real estate market in Dubai is able to regenerate and offer a variety of products to attract investors. We believe that Dubai can sustain this level of attraction and build on the momentum that is developing from the increased demand,’ said Sultan Butti Bin Merjen, Director General, at DLD.
The AUD to AED exchange rate could see volatility if investors get spooked by events in the Middle East and Ukraine. Tensions between the West and Russia remain high and the wars in Iraq, Syria and Gaza all have the potential to cause disruption in the Middle East.
Pressure is building upon Israel to halt its offensive into the Gaza strip after more innocent civilians were killed by Israeli artillery. An UN-run school used as a bomb shelter was hit resulting in 15 deaths and more than 200 injuries.
According to officials in the past 16 days of fighting, more than 750 Palestinians and 32 Israelis have been killed.