The exchange rate forecast for the AED to OMR appears moderately stable, with the current rate at 0.1047, which is close to its 90-day high and within a tight range of 0.8% over the past three months. Analysts note that this stability in the AED may reflect underlying strengths in the UAE economy, despite external pressures such as recent U.S. tariffs and the fluctuating value of the US dollar.
Recent developments indicate that the weakened AED has led to heightened interest from British investors in Dubai's real estate market, supporting the overall economic resilience of the UAE. This surge is a response to the AED's depreciation against the British pound, which is reported to be around 8%. The increase in foreign direct investment and consumer spending has bolstered forecasts for continued growth in 2025.
Additionally, the Central Bank of the UAE's advancements in the 'Digital Dirham' project may enhance transaction efficiencies, potentially impacting future currency dynamics positively. However, analysts warn that the weaker US dollar could lead to inflationary pressures within the UAE, influencing consumer costs.
On the Omani Rial side, movements in oil prices are critical, as OMR is significantly influenced by oil market fluctuations. Current oil prices are at 66.99, which is 2.9% below the three-month average of 68.98, within a volatile trading range of 20.4% from 65.50 to 78.85. Economists are watching these energy price dynamics closely as they may affect the economic fundamentals of Oman, and in turn, influence the AED to OMR exchange rate.
Overall, analysts suggest that while the exchange rate may experience short-term fluctuations, the steady foundation of the UAE's economy offers a cushion against volatility, with potential upward pressure if oil prices stabilize or rise.
