The exchange rate forecast for the AED to QAR remains dynamic, influenced by various economic developments and strategies in both the UAE and Qatar. Recent reports indicate the AED is currently trading at around 0.9914 QAR, nearing its three-month average and reflecting a stable range of 1.9% over the past quarter. Analysts have noted the persistent strength of the AED, bolstered by a recent currency swap agreement between the UAE and Turkey aimed at enhancing liquidity in both currencies. This agreement, valued at 18 billion AED, is expected to boost local transactions and could provide further support for the AED.
Moreover, Dubai's targeted approach to attract British property buyers with a weakened dirham has resulted in a significant uptick in foreign investments, signaling confidence in the UAE's real estate market. The International Monetary Fund's (IMF) projections of a 4.8% GDP growth for the UAE in 2025 also contribute to optimism regarding the AED's stability.
On the QAR side, recent developments point to a robust economic position for Qatar, with reports of increased international reserves and foreign liquidity. The Qatar Central Bank has proactively raised interest rates to maintain the stability of the QAR, and ongoing remittances activity during festive seasons continues to support exchange rates. Furthermore, economists from Qatar National Bank anticipate that a moderation in the US dollar's strength could positively influence the QAR's exchange dynamics.
Oil prices, which significantly impact the QAR, are currently near 14-day highs around 65.94 USD, although they remain below the three-month average. The recent volatility in oil prices, with a range of 20.4% observed, could indirectly affect the QAR's performance in the currency market, as fluctuations in oil revenues influence Qatar's fiscal health.
Overall, the near-term outlook for the AED to QAR exchange rate indicates stability, with recent economic developments suggesting that both currencies are well-positioned to navigate potential market fluctuations. Analysts will continue to monitor these trends closely, particularly regarding oil price movements and further monetary policy adjustments that could arise in response to global economic conditions.
