The latest survey data for the UAE shows that the non-oil sectors are recording a sharp improvement in business conditions. The UAE’s purchasing managers’ index (PMI) rose to 55.6 in May, the highest reading since mid-2019.
The survey highlights strong growth in both business activity and new orders, with about 28 per cent of companies reporting an increase in business activity last month.
The story is similar in neighbouring Saudi Arabia, where private sector companies have also reported robust growth in new work and business activity in May.
For the most part, this was expected as the region’s economies continue to recover from the coronavirus-related recession of 2020. The UAE has also benefitted from the rebound in international travel and tourism, with Dubai hotels reporting hotel occupancy at almost pre-pandemic levels through to April, and passenger traffic through Dubai International Airport more than doubling in the first quarter of 2022, relative to a year ago.
We expect this trend to continue, along with increased investment to underpin growth over the course of this year even as the global economic backdrop is less supportive in the second half of 2022.
At the same time, the oil and gas sectors are expected to record double-digit growth this year on increased oil production, and headline gross domestic product growth in the UAE is set to be the highest in a decade in 2022.
Consumers, however, are starting to feel the pinch of higher inflation. Dubai recently released consumer inflation data from January through to April 2022, after rebasing the index and adjusting the weights of the various components in the consumer basket.
Inflation accelerated an annual 4.6 per cent in April, from 1.1 per cent in December 2021. The main driver of inflation in Dubai in recent months has been transport costs, which were up 28.8 per cent, year on year in April, accounting for about half of headline inflation.
Petrol prices increased by 13.5 per cent month on month, in June to more than Dh4 ($1.08) a litre for 95-octane, about 80 per cent higher than a year ago, which will be reflected in the official CPI readings in the coming months.
With crude oil prices remaining elevated and refining and shipping costs increasing as well, there appears to be little relief for consumers on this front.
Food prices have also risen sharply, up 8.6 per cent year on year in April, again largely a result of developments in global markets because of the war in Ukraine disrupting the supply of key agricultural commodities, as well as higher freight costs.
The only component of Dubai’s CPI basket that declined on annual basis in April was housing and utilities. This may sound counterintuitive, given the evidence of higher residential rents across freehold areas of Dubai, but it takes 12 to 18 months for changes in the market to feed through to the official CPI survey, because not everyone renews their leases at the same time, and not all areas and units experience the same rate of rental price increases.
Already the rate of decline in annual housing costs in the CPI has slowed and we expect this to turn positive in the coming months.
While the Federal Competitiveness and Statistics Centre has yet to publish UAE wide inflation data for 2022, we expect a similar trend to be evident at the national level.
Consumer inflation in both Kuwait and Qatar stood at an annual 4.7 per cent in April while in Bahrain, inflation has accelerated to 3.5 per cent in April, although this is partly due to a higher VAT rate that came into effect in January.
Certainly, the caps on petrol prices in other GCC countries could keep inflation more contained this year, relative to the UAE.
If there are no further global supply shocks that push crude oil, food and other commodity prices higher in the coming months, we expect consumer inflation to slow in the UAE in the fourth quarter, as a stronger US dollar helps to offset some imported inflation, supply chain disruptions ease and high base effects kick in.
However, inflation could remain higher than it was in the pre-Covid-19 era for some time.
Khatija Haque is chief economist and head of research at Emirates NBD
The biog
Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.
Favourite book: Anything by Sidney Sheldon.
Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.
Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
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Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Coal Black Mornings
Brett Anderson
Little Brown Book Group
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
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
