Business activity in the non-oil private sectors of the Arab world’s two biggest economies continued to expand in June as a sharp increase in new orders and demand growth boosted confidence, amid a rapid Covid-19 vaccination campaign.
Saudi Arabia's IHS Markit Purchasing Managers' Index remained unchanged at 56.4 for a second consecutive month, indicating a robust expansion in the kingdom's non-oil private sector economy. A reading above 50 indicates economic expansion while anything below points to a contraction.
Business conditions in Saudi Arabia have now improved in each of the past 10 months as its non-oil economy recovers from the coronavirus-induced slowdown.
"Demand growth in the Saudi Arabian non-oil sector ramped up again in June, with the latest data signalling the strongest rise in sales since January,” said David Owen, an economist at IHS Markit.
“The roll-out of Covid-19 vaccines and easing of restrictions also helped to lift confidence for future activity to a five-month high, as firms hope that the economic recovery will accelerate over the second half of the year.”
Employment in Saudi Arabia also continued to rise, with the rate of job creation hitting a 19-month high at the end of the second quarter on hopes of future output growth.
Further increases in sales should encourage companies to expand their workforce, “particularly as the outlook for future business conditions looks promising”, said Mr Owen.
A rise in the new orders' index took the expansion of the non-oil private sector in June to a five-month high, according to the survey. Panellists linked new business inflows to an improvement in demand conditions as Covid-19 restrictions were eased in the kingdom.
While foreign orders also put in a solid showing, overall demand growth was largely led by domestic sales. To meet rising demand, the input purchases of companies rose sharply at the end of the second quarter. The rate of growth hit a 21-month high.
Companies surveyed stressed the need to stock up to protect themselves against future price increases as new orders continue to rise.
"It was also encouraging to see a slight easing in overall input price inflation for the first time in 2021, despite reports of demand pressure on several inputs,” said Mr Owen.
The UAE's IHS Markit PMI reading stood at 52.2 in June, pointing to a moderate improvement in business conditions. The index was down marginally from 52.3 in May.
The country's outlook for future activity improved for a seventh month in a row and supported the first rise in employment levels since January, according to the survey.
The rate of output growth was unchanged at the end of the second quarter despite higher new order inflows, with rising activity levels offset by a lack of raw material supply.
“Firms often mentioned that material shortages had hampered output growth, while new sales were curtailed by [some] travel restrictions,” said Mr Owen.
The roll-out of Covid-19 vaccines and easing of restrictions also helped to lift confidence for future activity to a five-month high, as firms hope that the economic recovery will accelerate over the second half of the year
David Owen,
economist at IHS Markit
Demand conditions were mixed, with overall new orders increasing in June. Some panellists said there was an improvement in client demand as the economic blow of the pandemic softened.
Sustained sales growth and an improved outlook for future activity encouraged companies to expand their workforce strength at the end of the second quarter. The increase in staffing was the quickest in about two and a half years.
“This helped firms to lower backlogs after a two-month run of accumulation,” the survey said.
Both Saudi Arabia and the UAE have eased pandemic-related restrictions as their mass inoculation programmes continue. However, some travel restrictions have been imposed in the recent weeks due to a surge in more virulent Covid-19 strains in some countries.
On Sunday, the UAE overtook the Seychelles to become the world’s most vaccinated country, with about three quarters of the public having received at least one dose, according to data compiled by Bloomberg.
The UAE has administered more than 15.5 million doses of vaccines, enough to vaccinate about 72.3 per cent of the country's population.
In Saudi Arabia, 18.4 million shots have been administered, enough for more than 27 per cent of the kingdom's population, according to Bloomberg's vaccine tracker.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Book%20Details
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
ALL THE RESULTS
Bantamweight
Siyovush Gulmomdov (TJK) bt Rey Nacionales (PHI) by decision.
Lightweight
Alexandru Chitoran (ROU) bt Hussein Fakhir Abed (SYR) by submission.
Catch 74kg
Omar Hussein (JOR) bt Tohir Zhuraev (TJK) by decision.
Strawweight (Female)
Seo Ye-dam (KOR) bt Weronika Zygmunt (POL) by decision.
Featherweight
Kaan Ofli (TUR) bt Walid Laidi (ALG) by TKO.
Lightweight
Abdulla Al Bousheiri (KUW) bt Leandro Martins (BRA) by TKO.
Welterweight
Ahmad Labban (LEB) bt Sofiane Benchohra (ALG) by TKO.
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR) no contest.
Lightweight
Mohammed Yahya (UAE) bt Glen Ranillo (PHI) by TKO round 1.
Lightweight
Alan Omer (GER) bt Aidan Aguilera (AUS) by TKO round 1.
Welterweight
Mounir Lazzez (TUN) bt Sasha Palatkinov (HKG) by TKO round 1.
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR) by KO round 1.
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Wednesday and the pair embraced but he failed to give her his backing as she cried a day earlier.
A spokesman said her upset was due to a personal matter.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
2289 - Dh10
2252 - Dh50
6025 - Dh20
6027 - Dh100
6026 - Dh200
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
