Economists shrugged off the threat of a boycott of French products by some Muslims in the Middle East, saying the effects would be minimal and short-lived.
As French President Emmanuel Macron refused to condemn the publication of cartoons of the Prophet Mohammed, analysts said any boycott would have little effect from a macroeconomic stance, as the proportion of exports heading from France to the Middle East is relatively small and similar protests in the past were short-lived.
"There be some armament exports and some luxury brands where you might see some impact but the percentage of French exports that go to those countries will be very, very small. So if you're thinking, what's the impact on the economy overall, it wouldn't be very big at all, especially now, given everything else going on," Andrew Kenningham, chief Europe economist at Capital Economics, told The National.
“There are so many other variables pushing exports around, that it would be lost in the middle of those things.”
Turkish President Recep Tayyip Erdogan called for a boycott of French goods on Monday following Mr Macron’s stance on freedom of speech following the murder of a French schoolteacher who had shown his class cartoons of the Prophet Mohammed.
French goods have already been pulled from supermarket shelves in some Gulf states, while in Syria people have burned pictures of Mr Macron and French flags have been torched in the Libyan capital of Tripoli.
Agathe Demarais, Global Forecasting Director at the Economist Intelligence Unit, said she expected the boycott to be short-lived based on the events of 2015, when a similar protest was called for following the murder of 12 people at the satirical magazine Charlie Hebdo in Paris over the publication of cartoons of the Prophet Mohammed.
“This is a remake of what happened in 2015 when there were calls for a boycott of French products in parts of the Muslim world. These were very short-lived and I don’t think French companies had any real issues selling their products in the Middle East at the time,” said Ms Demarais.
Judging by history, if things go the same way as they did in 2015, I don't think there are any worries for French companies in the Middle East.
“Judging by history, if things go the same way as they did in 2015, I don’t think there are any worries for French companies in the Middle East. Sometimes it’s difficult to know if a French company manufactures specific French products and the boycott calls are not necessarily shared by everyone in Muslim countries … certainly not everyone would like to take a stance against France and French products.”
However, Mr Kenningham said some luxury brands may experience a hit if a significant share of their exports are heading into GCC countries.
“Every lost export is lost revenue, so it would still have an effect for companies for whom sales to the Middle East are important," he said. "But it would probably be much, much smaller than the impact that we've had from Covid and the lockdowns.”
Luxury brands are insulated to some extent by the recovery in China, a big consumer of luxury brands, which Mr Kenningham said would be much “more important than what will happen in the Middle East, even if there's a boycott”.
On Monday, the head of France's MEDEF employers' federation said the boycott, which he described as "foolishness," was clearly bad news for companies already hard hit by the coronavirus pandemic.
"But there is no question of giving in to blackmail," Geoffroy Roux de Bezieux told broadcaster RMC. "It is a question of sticking to our republican values. There is a time to put principles above business."
His call came after various versions of the #boycottfrance tag began trending on social media sites, such as Twitter, with supporters urging followers not to buy goods produced in France.
In Saudi Arabia, calls for a boycott of French supermarket chain Carrefour were trending on social media, while luxury brands such as L’Oréal, Garnier and Lancôme were targeted in lists of brands to avoid in social media posts.
None of the companies responded for a request for comment from The National.
The impact of boycotts and sanctions, that look to “gain political benefit from economically strangling” trade with another country, is rarely effective at a macroeconomic level, said Mr Kenningham.
“The sanctions in South Africa are rare example where you've been achieved something, but otherwise, it's much more symbolic and political in terms of the impact it potentially could have. But you might get the owner of some perfume brand in Paris finding that the value of his company has been affected and that this becomes an irritant.”
Fawad Razaqzada, market analyst at ThinkMarkets.com said there is a perception that France’s stance towards Muslims has not been positive and “Macron’s refusal to condemn cartoons of the Prophet Mohammed is not a surprise”.
“With so much uncertainty over the pandemic, it is difficult to say that the boycotts have hit shares of French companies. But boycotting of French goods in the Middle East will only gather pace if the issue is not addressed and this would be a big blow for the nation’s suppliers and retailers, which could hurt their bottom lines and share prices," Mr Razaqzada told The National.
A Muslim boycott of Danish goods in 2006 led to a 15.5 per cent drop in total exports between February and June of that year, according to Danish government statistics.
Exports to Saudi Arabia fell by 40 per cent following the boycott, while those to Iran fell by 47 per cent, national data showed. Exports to Libya, Syria, Sudan and Yemen also suffered big falls.
The cost to Danish businesses was around €134 million ($158.4m), when compared with the same period in 2005, the statistics showed, with food companies, particularly those selling dairy products, among the worst affected.
"There is little doubt that this is a result of the caricatures crisis," Peter Thagesen, head consultant of Denmark's industry federation, Dansk Industri, said at the time. “This is serious for the affected businesses.”
Ms Demarais said she was surprised that Denmark’s export levels were so badly affected.
“I expect Denmark’s exports to be much smaller than France’s exports and this may explain why the drop was so significant,” she said. “Maybe the response at the time was stronger and I expect their exports to be more concentrated on a few products. French exports are much more diversified and much higher so I don’t think it can get to that high a level.”
Ms Demarais said the French government is taking threats “very seriously” and is in touch with a number of companies, particularly in the food sector.
“French exports to the Middle East would be mostly concentrated in defence products, so I don't think that there will be any issues around these, then it would be luxury products and I do not believe there will be any issues with French luxury products. And then there's food which is a category that would be most at risk, especially dairy products. But then I would expect … short-lived disruptions,” she said.
In 2006, the Centre for Economics and Business Research looked at Danish exports to 39 Islamic countries to analyse the possible effects of the boycott on the economy.
In the year to October 2005, exports amounted to 11.8bn Danish kroner ($1.88bn) or 2.4 per cent of Danish exports of goods, Cebr found, equivalent to 0.5 per cent of the country's gross domestic product.
The think-tank said at the time that in the worst scenario, Danish GDP might drop by that amount if Danish exports to those countries disappeared completely for a year.
Ms Demarais said the best strategy for French companies now is to carry on as normal.
“I'm no adviser to companies, but my advice is to stay quiet and carry on. I think that they can expect some support from the French government but I'm not especially worried for them,” she said.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
UAE currency: the story behind the money in your pockets
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
PAKISTAN SQUAD
Abid Ali, Fakhar Zaman, Imam-ul-Haq, Shan Masood, Azhar Ali (test captain), Babar Azam (T20 captain), Asad Shafiq, Fawad Alam, Haider Ali, Iftikhar Ahmad, Khushdil Shah, Mohammad Hafeez, Shoaib Malik, Mohammad Rizwan (wicketkeeper), Sarfaraz Ahmed (wicketkeeper), Faheem Ashraf, Haris Rauf, Imran Khan, Mohammad Abbas, Mohammad Hasnain, Naseem Shah, Shaheen Afridi, Sohail Khan, Usman Shinwari, Wahab Riaz, Imad Wasim, Kashif Bhatti, Shadab Khan and Yasir Shah.
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
Dubai Rugby Sevens
November 30, December 1-2
International Vets
Christina Noble Children’s Foundation fixtures
Thursday, November 30:
10.20am, Pitch 3, v 100 World Legends Project
1.20pm, Pitch 4, v Malta Marauders
Friday, December 1:
9am, Pitch 4, v SBA Pirates
WORLD CUP FINAL
England v South Africa
Yokohama International Stadium, Tokyo
Saturday, kick-off 1pm (UAE)
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
More from Neighbourhood Watch
Killing of Qassem Suleimani
Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%204.0-litre%20twin-turbo%20V8%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E680hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E800Nm%20at%202%2C750-6%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ERear-mounted%20eight-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E13.6L%2F100km%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Orderbook%20open%3B%20deliveries%20start%20end%20of%20year%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh970%2C000%3C%2Fp%3E%0A
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
