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DO FISCAL STIMULUS MEASURES SUPPORT THE US MARKET GROWTH, AND IS A DEFAULT POSSIBLE?

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Authored by Michael Smirnow, Chief Investment Officer, Arabian Capital Gulf

With the dirham pegged to the US dollar and UAE investors exposed to global markets, decisions made by the Federal Reserve and the US government can influence local borrowing costs, liquidity, and investment sentiment. Michael Smirnow, Chief Investment Officer, Arabian Capital Gulf After the global financial crisis, U.S. authorities tried to stimulate the economy primarily through monetary measures: the Federal Reserve cut interest rates to zero and launched quantitative easing (QE) for the first time, purchasing assets to provide market participants with liquidity.

As a result, the Fed’s balance sheet grew to USD 8 trillion by 2021. However, between 2008 and 2020, the U.S. economy did not experience rapid growth, and inflation regularly remained below the target level. Everything changed in 2020, when the government entered the stimulus fray for the first time in many years. While the Fed’s accommodative monetary policy primarily helped large banks and market participants, at the onset of the pandemic the U.S. government began distributing money to households and increasing budget expenditure across nearly all areas.

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Compared with monetary measures, these fiscal stimulus measures proved to be a significantly more powerful tool for stimulating the economy; however, they increased government debt by the aforementioned 61%. Against this backdrop, we expect the next few years to be shaped primarily by fiscal stimulus, with government action, rather than the Federal Reserve, becoming the key factor for investors. Indeed, while the private sector ran large deficits before 2008, the deficit now lies with the government, while private-sector indebtedness is declining. In the years following the pandemic, the largest government deficits coincided with the strongest growth in financial markets. This is unsurprising, since a public-sector deficit becomes private-sector income. This dynamic enabled the U.S. economy to remain resilient in 2023-2024 despite the Fed’s record pace of interest-rate increases. Whichever U.S. political party is in power will continue along this path; Trump is also doing the same through legislation known as the “Big Beautiful Bill.”

As long as inflation in the United States remains under control, this race will continue. The current balance between monetary and fiscal stimulus vividly illustrates this argument. On the one hand, the U.S. Federal Reserve is adopting an increasingly neutral stance and is clearly in no hurry to cut interest rates or introduce new stimulus programmes. On the other hand, the Treasury is entering the fray: as yields on long-term U.S. bonds confidently exceed 5%, the Treasury has launched a program to buy back its long-term debt. In effect, this gives the bond market the same kind of stimulus the Fed previously delivered.

Thus, the balance of power is changing, but the direction remains the same: the United States still needs accommodative monetary conditions. If these are not achieved through monetary measures, they will be achieved through fiscal ones.

(Arabian Gulf Capital (AGC) holds a Category-1 Investment Firm license issued by the Central Bank of Bahrain and provides tailored investment solutions to individual, corporate, and institutional clients.)

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Nilaa Coral Island Introduces a New Expression of Private Island Living to the Maldives

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Nilaa Coral Island Maldives, the first Maldives property from the Italian group, Holding Carisma, opens its doors on the 1st of November on the island of Kodegalaa in the Gaafu Dhaalu Atoll, introducing a new expression of private island living defined by restraint rather than scale.

Home to just seven villas, each designed as an individual residence, Nilaa reimagines what an island resort can be: intimate and built to feel like a private home rather than a hotel.

“With Nilaa, we wanted to build something that felt like a home, not a hotel,” says Mila Zegna Cagnoli, a member of the owning family. “We wanted every villa to have the warmth and individuality of a home. That is what matters most to us.”

Set in the deep south of the Maldives, near the Equator, Nilaa enjoys a remarkably balanced rhythm of light, warmth and island life throughout the year.

Nilaa has been brought to life around a simple philosophy – luxury is not defined by excess, but by space, privacy, connection, and the freedom to experience each day entirely on your own terms. With a maximum capacity of approximately 40 guests, the island offers an exceptionally intimate setting. Personalised service and a genuine sense of belonging sit at the heart of the experience.

Seven Villas, One Reef
At Nilaa, the island itself is the centre of the experience. Unlike traditional Maldivian resorts where overwater villas extend into the lagoon, every structure at Nilaa sits gently on the island. This preserves the surrounding reef and keeps the natural relationship between sand, sea and vegetation at the forefront.

The seven villas, a collection of two- and three-bedroom homes alongside a single five-bedroom villa, have been designed as individual residences, with generous living spaces, kitchens, high ceilings and private outdoor areas that open towards the island and ocean. Each villa carries its own identity, inspired by the forms and colours of coral and anemones, with bespoke marble selections, natural materials and considered details creating a sense of individuality throughout the property.

The result is a private island experience that feels residential in scale, yet offers the intuitive service of a luxury retreat.

The Maldives of the Past
Nilaa offers a quieter, more authentic perspective on the Maldives – rooted in nature, simplicity and discovery. Its equatorial setting places guests within one of the archipelago’s most remarkable marine environments, where a pristine house reef remains accessible directly from the shore, untouched by the usual resort development.

The reef is an integral part of daily life at Nilaa. Guests can snorkel just moments from their villa, or explore further through the marine center where they offer guided diving, kite surfing, wing foiling, e-boarding, water skiing, wakeboarding, jet skiing, parasailing and private boat excursions across the atoll. The island also has a professional dive team that offers experiences ranging from house reef orientation and refresher dives to advanced diving, night dives and PADI courses.

For those looking beyond the reef, Nilaa’s private fleet opens the wider Indian Ocean to exploration, from leisurely cruises and sunset fishing to diving, big game fishing and watersports.

Rather than encouraging guests to fill every moment, Nilaa invites them to slow down and let the island shape the rhythm of their stay.

Where Italian Soul Meets the Maldives
The Italian spirit is woven throughout Nilaa, not as a theme, but as a way of approaching hospitality, design and food. The island has been designed by Hus, the architecture studio based between Milan and Como, drawing from the natural forms of the surrounding environment.

Travertine, coloured marble and natural textures reflect Italian craftsmanship while echoing the tones of the Maldivian landscape. Curved forms inspired by the wishbone, anemone and circle appear throughout the architecture, creating a dialogue between the built environment and the island’s natural character.

This same philosophy extends to service, where warmth, intuition and thoughtful care are prioritised over formality.

A Culinary Journey Across Cultures
Food is central to the Nilaa experience, bringing Italian–Asian culinary dialogue, shaped by Maldivian ingredients and island influences.

Dining unfolds across a number of settings on the island: refined restaurant experiences, intimate chef’s table menus, relaxed poolside dining, homemade bakery offerings, rooftop aperitivo at sunset, and private meals served within the villas.
The emphasis is on food as an experience in itself, rooted in quality, craftsmanship and the pleasure of sharing a meal in remarkable surroundings.

Wellness, Nature and the Art of Slowing Down
Wellness at Nilaa extends beyond the traditional spa experience, with space for guests to attune to both body and surroundings. The island’s boutique spa incorporates traditional and Ayurvedic treatments, while movement and outdoor experiences offer a more active dimension to island life.

Guests can spend the day exploring the reef, playing tennis, taking part in local artisanal workshops, or simply retreating to the beach with nowhere else to be.
For Nilaa, wellness is about creating space: space to rest, explore, and experience the natural rhythm of island life.

An Island Entirely Yours
With only seven villas, Nilaa offers an inherently private setting for travellers seeking an escape shared with those closest to them. The entire island can be completely booked out, creating a private setting for families, multi-generational travel, intimate celebrations, weddings and milestone occasions.

Whether experienced as a private retreat for two or as an intimate island gathering, Nilaa is built on a simple idea: the most meaningful island experiences are often the most personal.

As the Maldives continues to evolve as one of the world’s most sought-after destinations, Nilaa offers a quieter alternative. Here, nature remains at the centre. Design is deeply considered, hospitality is personal, and time is allowed to unfold without hurry. Nilaa Coral Island is an invitation to experience the Maldives differently, not as a destination to simply visit, but as a place to feel truly at home.

Reaching Nilaa
Getting there is part of the experience. Guests fly into Malé International Airport, then continue by private jet or a one-hour domestic flight to Maavarulu Airport. From there, Nilaa’s own boat carries guests across the atoll to the island in just twenty minutes.

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Good Hair Days Start At Breakfast: Mary Ruth’s Liquid Multivitamin + Hair Growth, Now on iHerb Middle East

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The days of thinking haircare starts and ends in the shower are officially behind us. Today’s approach is a little more holistic, bringing together everything from your favorite hair products to the little wellness habits that make up your day. With iHerb Middle East offering an extensive selection of wellness, beauty and self-care essentials from leading global brands, discovering new favorites for every part of your day has never been easier. 

Founded by health educator and nutritional consultant MaryRuth Ghiyam, the brand built its name on liquid vitamins that are as easy to take as they are to enjoy. Today it is known for clean, thoughtfully formulated supplements for every stage of life. 

MaryRuth’s Liquid Morning Multivitamin + Hair Growth – AED 225.46

Consider this your morning multivitamin with a beauty twist. Featuring Lustriva®, it is formulated to support hair growth and healthier-looking skin, but that’s only part of the story. With 10,000 mcg of biotin, all eight B vitamins, vitamin D3 and zinc, it also supports energy metabolism, immune function and your overall everyday wellness. It comes in an easy liquid format with a peach mango flavor, so it feels less like a chore and more like a little morning treat, and it’s vegan, gluten-free and sugar-free as well. Because your haircare routine deserves a spot beyond the bathroom shelf, too. To order the products, visit https://ae.iherb.com/ and keep an eye on iHerb Middle East Instagram, @iherbmiddleeast, for the latest wellness finds, updates, and offers.

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From Coffee to Wellness: Three Dubai Destinations Shaping Everyday Wellbeing

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Where Coffee, Food & Community Come Together – Roasters Specialty Coffee House

Founded in Dubai, Roasters Specialty Coffee House has grown into one of the UAE’s prominent homegrown specialty coffee brands, combining specialty coffee, all-day dining and a strong focus on craftsmanship and hospitality.  

At the heart of the experience is Roasters’ specialty coffee programme, with skilled baristas working with carefully sourced beans and a range of brewing methods, including espresso-based drinks and hand-brewed coffee. Beyond coffee, the cafés offer an extensive all-day menu spanning breakfast favourites, savoury dishes, pastries, desserts and seasonal creations, making the brand suitable for everything from morning meetings and leisurely breakfasts to casual lunches and afternoon coffee breaks.

With locations across some of Dubai’s most prominent neighbourhoods and destinations, Roasters continues to position itself as more than a coffee shop, creating spaces centred around coffee culture, food, community and contemporary Dubai lifestyle.

Location: Multiple locations across Dubai

Cuisine: Specialty Coffee & All-Day Dining

Experience: Specialty coffee, breakfast, pastries, desserts, all-day dining & coffee experiences

A More Connected Approach to Wellness – Wellcube

At Wellcube, this idea comes to life through a more connected approach to wellbeing. The Dubai wellness destination brings together movement, nutrition, recovery, clinical wellness and longevity, creating a space where different parts of health can be considered together rather than in isolation.

Its Tranquil Wellness offering takes the idea even further, creating an environment designed around rest, recovery and feeling restored. From fitness and wellness experiences to treatments, nutrition and spaces designed with wellbeing in mind, the focus is on helping people build healthier routines that can actually fit into everyday life.

Rather than waiting until burnout or exhaustion forces a reset, the approach encourages people to think about wellness as something ongoing — something that can be woven into the week alongside everything else.

A More Considered Approach to Aesthetic Care- Aesthetics by King’s College Hospital London – Dubai

 

Wellness can also be about the things that make us feel confident, comfortable and more like ourselves.

At Aesthetics by King’s College Hospital London – Dubai, that starts with taking a more considered approach to aesthetic care. The clinic offers personalised treatments across facial rejuvenation, regenerative skin therapies, laser treatments, body contouring, hair restoration and intimate wellness, with care tailored around individual concerns and goals.

Led by Plastic Surgeon and Medical Director Dr. Dragana Spica, the focus is on enhancing rather than transforming, with treatments designed to support skin quality and achieve natural-looking results.

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