Business activity in the non-oil private sectors of the Arab world’s two biggest economies continued to improve in August, with output growth driving the fastest rise in employment in the UAE since January 2018.
Saudi Arabia's IHS Markit Purchasing Managers' Index indicated continued momentum in the kingdom’s non-oil economy, albeit at a slower pace. The index fell to 54.1 in August from 55.8 in July. A reading above 50 indicates economic expansion while anything below points to a contraction.
Business activity in Saudi Arabia has steadily improved in the past 12 months, as its economy bounces back from the pandemic-driven slowdown.
The latest data indicated a sharp growth in new business in August although, as was the case with output, the rate of growth slipped from July.
"The non-oil economy went slightly off the boil in August, as output growth slipped to the weakest level for 10 months amid a slowdown in new business gains," David Owen, an economist at IHS Markit, said.
"Demand momentum is still largely on the upside, with nearly three times as many firms seeing a rise in new orders as those registering a fall."
Although pandemic-related challenges persist, domestic orders in August surged and the number of tourists to the kingdom increased, Mr Owen said.
The output index dropped, but still pointed to a solid rise in non-oil activity, which the companies surveyed attributed to an improvement in demand and the easing of travel measures.
New business in the kingdom continued to grow sharply over the month, albeit at a slower rate, partly due to a softer increase in export sales as the virulent Delta variant led to a rise in Covid-19 cases in other parts of the world.
The rate of job creation was unchanged from July, with companies finding that the current output capacity was sufficient to complete existing work.
"Firms expect an improvement in domestic business conditions in the coming months", however, the unpredictability of the pandemic means that downside risks remain, Mr Owens said.
The headline PMI reading for the UAE reached 53.8 in August, slightly lower than the 54 it recorded in July. It was, however, the second-fastest improvement in the country’s non-oil private sector for more than two years.
With output requirements growing, non-oil private sector companies also increased their employment levels at the fastest rate since the beginning of 2018.
The August data indicated that business activity in the UAE grew at the quickest rate since July 2019, driven by an improvement in demand as the economy continued to recover with easing of pandemic-related restrictions.
New orders in the country rose for the sixth straight month, although the rate of growth eased slightly from July's recent high.
"PMI data signalled another robust rise in business activity across the non-oil sector in August, as demand continued to rebound from the pandemic," Mr Owen said. "This increasingly fed through into firms' hiring decisions, with employment numbers ticking up."
Uneven economic recovery and the renewed movement restrictions in some parts of the world due to a surge in Covid-19 Delta variant cases dented foreign demand in August. Despite continued shipping delays, latest data hinted that supply-side conditions are improving with overall delivery times shortened for the first time since January this year.
The outlook for the UAE's non-oil private sector economy remained positive in August, with businesses "hoping to gain investment from the Expo 2020 and benefit from a general pick-up in economic conditions", according to the survey.
Both Saudi Arabia and the UAE have pressed ahead with their extensive Covid-19 mass inoculation campaigns. The UAE has eased some travel restrictions as the number of Covid-19 infections continue to decline in the Emirates.
The UAE has administered more than 18.3 million doses of vaccines, enough to vaccinate more than 85 per cent of the country's population. Nearly 76 million PCR tests have been conducted to date and about 71 per cent of people in the country have received two doses of vaccine. So far in Saudi Arabia, 37.8 million shots have been administered, enough for more than 55 per cent of the kingdom's population, according to Bloomberg's vaccine tracker.
Meanwhile, business conditions in Egypt's non-oil private sector economy improved to just a notch under the 50 neutral mark in August. The headline PMI reading rose to 49.8 in August, up from 49.1 in July, just shy of June's seven-month high.
Although the PMI was still in contraction territory, it "masked renewed upticks in output and new orders" in August to suggest that businesses had taken further steps to recover from the Covid-19 pandemic, according to the survey.
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UAE currency: the story behind the money in your pockets
RACE CARD
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More on animal trafficking
The biog
Fatima Al Darmaki is an Emirati widow with three children
She has received 46 certificates of appreciation and excellence throughout her career
She won the 'ideal mother' category at the Minister of Interior Awards for Excellence
Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
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If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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
Killing of Qassem Suleimani
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
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Price: Exact regional pricing TBA
The five pillars of Islam
Zayed Sustainability Prize
Mohammed bin Zayed Majlis
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
