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.

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.)

Step into a bedroom at EYWA Way of Water and you will feel like entering a sanctuary. The invisible electromagnetic hum that fills every modern home has been filtered out. This allows the body to recover and improve residents’ longevity. Engineered quiet for the nervous system: This is the EMFIS® Certification quality seal, which will be granted to this waterfront residential development on the Dubai Water Canal in Business Bay. The project is targeting EMFIS® certification as part of a wider suite of international wellness benchmarks that includes LEED Platinum, WELL Platinum, and WiredScore Platinum.

The appointment builds on EMFIS’s earlier certification of EYWA – Tree of Life, which established the partnership between the two organisations and made EYWA one of the region’s first residential developments to certify electromagnetic hygiene as a measurable, independently verified building standard. At EYWA Way of Water, EMFIS® is applying the same methodology at greater scale across approximately 65 ultra-luxury residences spanning 2– to 5-bedroom apartments, duplexes, and a penthouse, designed by OAD (Zane Tetere-Sulce) with John R Harris as consultant. Delivery is expected around 2028.

At EYWA Way of Water, EMFIS® will pay particular attention to bedrooms, and verifying that shielding and infrastructure choices keep exposure within the bounds EMFIS® considers appropriate for long-term occupancy. All while preserving the aesthetics of the spaces. Where integrated at the design phase, as is the case at EYWA Way of Water, EMFIS’s approach has achieved reductions of up to 98.7% in low-frequency electric fields and 81.8% in high-frequency electromagnetic fields that are verified through independent third-party testing. That’s the difference between a room full of EMF pollution and one fit for a retreat.

Electromagnetic exposure remains the one dimension of indoor environmental quality that most healthy-building frameworks have yet to address. Modern buildings generate a continuous electromagnetic environment from internal wiring, Wi-Fi networks, smart systems, and external 5G infrastructure, operating around the clock regardless of occupancy. The World Health Organization classifies radiofrequency electromagnetic fields as possibly carcinogenic, and mounting regulatory action in Europe, including France banning Wi-Fi in daycare centres and Switzerland writing precautionary EMF limits for schools and hospitals into national law, reflects growing institutional recognition of the issue.

The Global Wellness Institute values the global wellness real estate market at $876 billion, on a trajectory to $1.8 trillion by 2030. In the UAE, the sector has grown from $3.3 billion in 2017 to $14.6 billion in 2025, expanding at 21% annually, making it one of the fastest-growing real estate categories in the region. Wellness-focused properties already command a price premium of 10 to 25% over conventional equivalents. EMFIS’s own benchmarked data across certified projects shows low-EMF certification specifically delivering an average added value of approximately 14%, reflecting a market that increasingly distinguishes between properties that carry a wellness label and those that can demonstrate independently verified wellness standards.

Federico Marangoni, Founder and CEO of EMFIS® commented “Green building told us how a building treats the world outside it. The next question – the one EYWA Way of Water is helping answer – is what a building does to the people inside it over the course of a lifetime. Electromagnetic pollution is the dimension of the indoor environment the industry has not yet had the tools to measure and certify. That is exactly the gap EMFIS® closes, and EYWA Way of Water is one of the clearest examples in the region of a developer addressing it at design phase, where it makes the most difference. EYWA Way of Water is pitched to offer the quietest square meters in Dubai.”

Mariska Stoffel, Director of Design & Development at R.Evolution  commented, “Architecture is becoming much more sophisticated in how it responds to human wellbeing. When people spend around 90% of their time indoors, we are shaping the environment where much of daily life happens. That means looking beyond aesthetics to the invisible conditions created by the building itself. Sleep and recovery are a key part of that, which is why EMFIS® provides an important benchmark for how we address electromagnetic exposure. At EYWA Way of Water, we are designing for people who take a long-term view of both capital and personal wellbeing, while creating healthier, more considered living environments in an increasingly connected world.”

Shailesh Bhandari, Director, John R Harris commented “At John R Harris & Partners, sustainability is embedded in our thinking from the first line of a project. EYWA Way of Water extends that principle into territory the industry is only beginning to navigate seriously: the electromagnetic environment that residents live within every day. Partnering with EMFIS® reflects our belief that truly well-crafted spaces actively support the health and longevity of those who inhabit them.”

EMFIS® has certified projects across eight countries in Europe and the Middle East and operates a GCC showroom in the UAE. Founded on research conducted at EPFL (École Polytechnique Fédérale de Lausanne) and recognised by Switzerland’s national standardisation body, a member of ISO, it is currently the only organisation in the world dedicated specifically to measuring, certifying, and managing electromagnetic exposure within the built environment. The appointment of EMFIS® to EYWA Way of Water is part of a growing pipeline of UAE and GCC projects in which electromagnetic environment certification is being integrated from the earliest stages of design, rather than treated as a post-occupancy consideration.

Minor Hotels, a leading global hotel owner and operator, has announced Avani Kota Kinabalu, a 352-key premium lifestyle hotel set to open in Q1 2027. Forming part of The Logg Luyang integrated development by KTI Landmark, the property will introduce the Avani brand to Sabah and expand Minor Hotels’ presence in Malaysia.

Avani Kota Kinabalu will cater to leisure and corporate demand in Kota Kinabalu, one of East Malaysia’s principal commercial centres and a key gateway to Borneo. Approximately 10 minutes from Kota Kinabalu International Airport, the hotel will provide access to the city’s business districts, residential neighbourhoods and visitor attractions.

The announcement supports Minor Hotels’ strategy of expanding its lifestyle portfolio in destinations with growing domestic, regional and international demand. Avani Kota Kinabalu will also strengthen the group’s presence in Malaysia, joining Anantara Desaru Coast Resort & Villas in Johor, as it continues to pursue development opportunities across Asia.

Developed by KTI Landmark, The Logg Luyang will bring together hospitality, commercial and lifestyle components within the established Luyang neighbourhood. Avani Kota Kinabalu will serve as the development’s hospitality anchor, offering accommodation, dining, wellness and event facilities for hotel guests and the local community.

“Kota Kinabalu is evolving rapidly as a regional business and tourism hub, creating strong demand for a hotel that can move easily between corporate, leisure and social use,” said Winston Gong, General Manager of Avani Kota Kinabalu. “Our focus will be on delivering an efficient, locally relevant guest experience while building a property with genuine appeal to the city’s residents.”

Designed by Shah Architect, with landscape architecture by SD2 and interiors by INdulge, Avani Kota Kinabalu will feature 352 rooms tailored to business trips, short breaks and longer stays.

Avani Kota Kinabalu will feature five dining and social venues for hotel guests and the local community. The all-day dining restaurant will serve Sabahan, Malaysian, Korean and international cuisine, with live cooking stations, local specialities and a signature Avani Sunday Lunch. A contemporary Chinese restaurant will focus on Sabah Hakka heritage and regional flavours, while the Lobby Lounge will transition from a daytime meeting space into an evening venue serving afternoon tea, as well as cocktails and whiskies.

The Pantry will offer handcrafted bakery items, desserts and premium coffee for dining in or takeaway. On the rooftop, SEEN Restaurant & Bar will bring the established rooftop dining and nightlife concept to Sabah through globally inspired cuisine, mixology, curated music and destination-led experiences.

The hotel will also include dedicated meeting and banquet facilities for conferences, weddings and social events. Leisure facilities will include an infinity pool and AvaniFit gym, with nearby Tun Fuad Stephens Park offering access to outdoor recreation.

Avani Kota Kinabalu will combine accommodation, rooftop dining, wellness and event facilities within a major integrated development, strengthening Minor Hotels’ lifestyle offering in Malaysia and supporting the group’s continued expansion across Asia.