Business activity in the non-oil private sector economies of Saudi Arabia and the UAE continued to expand in January, although at a slower pace amid a rise in Omicron cases and softer demand growth.
The seasonally adjusted Saudi Arabia Purchasing Managers’ Index posted a reading of 53.2 in January, down from 53.9 in December, but signalled a solid improvement in the health of the non-oil private sector of the Arab world’s largest economy.
A reading above the neutral level of 50 indicates expansion while one below it points to a contraction.
A rise in Covid-19 cases led to “increased hesitancy” among businesses and customers, which culminated in a weaker new business growth in January, IHS Markit said in its latest PMI survey on Thursday.
The rate of new order growth softened for the fourth consecutive month and was the slowest recorded since October 2020.
Businesses surveyed said some of their clients withheld orders due to uncertainty about the economic impact of the new coronavirus variant. A slowdown in travel amid the recent surge in cases also affected demand.
New orders from foreign customers also fell for the first time since last March, although only marginally.
“Customer demand in the non-oil sector was quelled by the Omicron variant at the start of the year, leading to slower rises in activity and new business and the softest improvement in business conditions since October 2020,” IHS Markit economist David Owen said.
“Export sales decreased … as companies also blamed high costs for global shipping and transport.”
Coronavirus infections have risen around the world after the detection of the more transmissible Omicron strain in South Africa in November.
The number of cases worldwide now exceeds 385 million, with deaths rising above 5.7 million, according to Worldometer, which tracks the pandemic. More than 305 million people have recovered from the infection.
The unabated spread of Omicron has forced countries, particularly in Europe and Asia, to impose fresh movement restrictions to curb the pandemic.
However, those curbs are slowly being rolled back as deaths and hospital admissions remain low.
Despite global headwinds and continued pandemic-linked uncertainty, input pressures moderated at the start of the year, with the latest data indicating the softest increase in total expenses since last August. Purchase prices rose only modestly.
Companies in the kingdom were able to reduce backlogs at the quickest pace since July last year despite staff shortages due to Covid-19.
Optimism around the outlook for business in the year ahead improved in January after it dropped to an 18-month low at the end of 2021. The buoyant sentiment was underpinned by expectations that a recovery from the pandemic will lead to stronger new business growth and a stabilisation of global markets.
Meanwhile, the sharp rise in economic activity in the UAE’s non-oil private sector slowed from its December high but remained strong overall. The UAE gauge, which gives a snapshot of business activity, stood at 54.1 in January, down from 55.6 in December.
Business activity was boosted by strong sales generated by Expo 2020 Dubai, alongside a broad recovery in economic conditions from the pandemic.
The latest survey data showed a sharp rise in new work led to a further marked expansion in output across the non-oil sector.
However, after reaching near-record highs at the end of 2021, there were signs that growth had begun to slow down, with rates of expansion in both business activity and sales softening to four-month lows.
This was partly due to a rise in Covid-19 cases, the survey said.
“The UAE's non-oil sector entered 2022 on a strong footing as businesses continued to enjoy the benefits of a recovery in economic conditions and increased demand from the Expo,” Mr Owen said.
“The latest data further solidified this footing”, but showed signs that growth has tailed off, he said.
The surge in Covid-19 cases also tapered the rebound in the UAE's tourism sector in January. However, the sector could quickly “recoup this momentum in the coming months as the Omicron wave appears shorter than previous ones”, Mr Owen said.
Other challenges such as stronger inflationary pressures and global supply chain problems remain, he said.
Business outlook in the UAE also improved, with companies signalling stronger growth forecasts than what was recorded on average throughout 2021 amid expectations of a broader recovery in demand.
However, the January PMI data in Egypt signalled a deceleration in business activity, underpinned by weaker client demand and inflationary pressures. Output levels fell at their strongest pace in more than 18 months, while new business volumes fell at a faster rate than in December.
The PMI gauge fell to 47.9 in January, from 49 in December, the lowest level since April 2021. The reading was also below the series average of 48.2 and indicated a solid decline in overall business conditions.
“Egypt's non-oil economy had a disappointing start to the year, as weak demand conditions led to stronger declines in output and new business,” Mr Owen said.
However, businesses surveyed remained “largely confident that they would weather the current economic storm and see activity increase over the next 12 months”, he said.
Killing of Qassem Suleimani
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
Funk Wav Bounces Vol.1
Calvin Harris
Columbia
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
Match info:
Burnley 0
Manchester United 2
Lukaku (22', 44')
Red card: Marcus Rashford (Man United)
Man of the match: Romelu Lukaku (Manchester United)
UAE currency: the story behind the money in your pockets
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
New schools in Dubai
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
What is Genes in Space?
Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.
It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
DUBAI WORLD CUP RACE CARD
6.30pm Meydan Classic Trial US$100,000 (Turf) 1,400m
7.05pm Handicap $135,000 (T) 1,400m
7.40pm UAE 2000 Guineas Group Three $250,000 (Dirt) 1,600m
8.15pm Dubai Sprint Listed Handicap $175,000 (T) 1,200m
8.50pm Al Maktoum Challenge Round-2 Group Two $450,000 (D) 1,900m
9.25pm Handicap $135,000 (T) 1,800m
10pm Handicap $135,000 (T) 1,400m
The National selections
6.30pm Well Of Wisdom
7.05pm Summrghand
7.40pm Laser Show
8.15pm Angel Alexander
8.50pm Benbatl
9.25pm Art Du Val
10pm: Beyond Reason
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
Killing of Qassem Suleimani
MATCH INFO
What: India v Afghanistan, first Test
When: Starts Thursday
Where: M Chinnaswamy Stadium, Bengalaru
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
UAE currency: the story behind the money in your pockets
