The AED to QAR exchange rate is currently range-bound.
Key drivers include the recent interest rate cuts by the Qatar Central Bank, which could stabilize the QAR. Additionally, strong economic growth forecasts for both the UAE and Qatar may support their currencies. Notably, the UAE anticipates GDP growth of 4.9% in 2025, bolstered by diverse sector performance, while Qatar expects 5.6% growth, driven by expanding LNG production capacity.
In the near term, the exchange rate is expected to trade within a stable range, closely reflecting its recent performance near 0.9912.
An upside risk could arise from unexpected improvements in oil prices, currently at 30-day highs which often influence the QAR due to Qatar's reliance on energy exports. Conversely, any significant global inflation concerns or geopolitical tensions could negatively impact both currencies.