Business activity in the non-oil private sector economies of Saudi Arabia and the UAE recorded a sharp improvement in August as rising demand bolstered new business activity despite mounting concerns of a global economic slowdown amid inflationary pressures.
Saudi Arabia's seasonally adjusted S&P Global purchasing managers’ index climbed to 57.7 in August, from 56.3 in July, the highest level since October 2021, as new business growth hit a 10-month high.
The headline index also climbed above its series average of 56.8, indicating an improvement in business conditions in the Arab world's largest economy for the 24th month in a row.
A reading above the neutral level of 50 indicates growth, while one below it points to a contraction.
“The Saudi Arabia PMI pointed to added resilience in the non-oil economy during August, as business activity and sales continued to rise sharply despite reports of mounting global economic distress,” said David Owen, an economist at S&P Global Market Intelligence.
“Total new orders rose at the quickest pace since October last year, driven by improving client demand, higher exports and a broad recovery in economic conditions since the pandemic.”
Businesses were also helped by a “slight softening” of input price pressures, allowing some companies to cut output charges in a bid to attract higher sales, he said.
Output, new orders, stocks of purchases and employment in the kingdom, all improved midway through the third quarter of the year.
Non-oil output continued to increase, with the pace of growth picking up from the previous month.
Survey panellists suggested that output mainly increased due to increasing new business inflows, which, in turn, were supported by improving demand conditions.
The latest increase in the volume of new orders was the quickest in 10 months, helped by another strong improvement in new export orders.
By sector, new work rose at the fastest pace in the wholesale and retail industry, with expansion also recorded in manufacturing, construction and services, according to the survey.
The sustained improvement in non-oil business activity led to companies expanding their input purchases in August, with rate of growth climbing to its sharpest in seven years. Businesses built up stocks in anticipation of further sales growth.
Employment levels in the kingdom rose for the fifth successive month in August, although marginally, according to the survey.
Business confidence remained firmly upbeat in August, reflecting expectations that strong new order growth will continue despite mounting global economic pressures.
The degree of optimism was one of the strongest over the past 18 months.
Saudi Arabia’s economy grew by 11.8 per cent in the second quarter of 2022, with oil-related economic activity in the kingdom rising 23.1 per cent annually.
Non-oil economic activity improved 5.4 per cent in the April-June quarter, according to General Authority for Statistics (Gastat) data.
The kingdom's economy is set to grow at the quickest pace in a decade and could be one of the world’s fastest-growing economies this year, the International Monetary Fund said in August.
It is expected to expand 7.6 per cent this year after growing by 3.2 per cent in 2021, the IMF said in its World Economic Outlook update in July.
Non-oil growth will increase to 4.2 per cent in 2022 before returning to its medium-term potential of 4 per cent.
While businesses surveyed indicated a slowdown in both input cost and output price inflation in August, fuel costs remained a key challenge. The overall increase in input costs was solid, although “the least marked since May”.
A rise in hydrocarbon prices and a sharp increase in European energy prices amid Russian gas supply disruptions have added to economic headwinds.
Inflation in the US, the UK and some other advanced economies is at its highest in decades amid Russia's continuing military assault in Ukraine.
Global inflation has been forecast at 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies, according to the IMF. However, it is significantly lower in both Saudi Arabia and the UAE.
Consumer prices in Saudi Arabia increased by 2.7 per cent on an annual basis in July, according to Gastat data.
Inflation in the UAE is also relatively low. It remained at 3.3 per cent in the first quarter and is expected to average 2.7 per cent in 2022, according to the UAE Central Bank.
The UAE PMI Index posted a reading of 56.7 in August, up from 55.4 in July, marking the quickest rise in business activity since June 2019.
The rate of sales growth was the second fastest in more than three years.
Non-oil business growth in the Emirates signals a “robust improvement in business conditions” as “sales growth picked up even further, supported by additional efforts to provide discounts to clients”, Mr Owen said.
Businesses surveyed linked output growth to a sharp uplift in new order volumes in August as client demand improved. While domestic sales remained strong, new export business rose only marginally last month.
With purchase costs falling and output requirements growing, companies sharply expanded their input buying midway through the third quarter, with stock levels rising at the fastest pace since August 2020.
The Saudi Arabia PMI pointed to added resilience in the non-oil economy during August, as business activity and sales continued to rise sharply despite reports of mounting global economic distress
David Owen,
economist, S&P Global Market Intelligence
Employment increased for the fourth straight month to the strongest level in a year as businesses hired more workers to finish backlogs amid the continued economic bounce back.
The UAE economy is set to expand by an annual 5.4 per cent this year, according to the Central Bank.
The IMF projects that the UAE economy will grow 4.2 per cent in 2022 while Japan's largest lender MUFG expects it to grow 4.9 per cent.
The Egyptian non-oil economy registered a softer decline in operating conditions in August as inflationary pressures eased slightly, leading to slower decreases in output and new orders.
Egypt's PMI index reading climbed to 47.6 in August, from 46.4 in July, its highest level since February.
“August saw the key PMI metrics move in the right direction, with the headline index up for the second month running, while price gauges continued to fall from their recent peaks,” Mr Owen said.
“The latest rise in input costs was much softer than in July, supporting a slower uplift in output prices that should ease the burden on consumers over the coming months.”
Killing of Qassem Suleimani
More on Quran memorisation:
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings
Quick facts on cancer
- Cancer is the second-leading cause of death worldwide, after cardiovascular diseases
- About one in five men and one in six women will develop cancer in their lifetime
- By 2040, global cancer cases are on track to reach 30 million
- 70 per cent of cancer deaths occur in low and middle-income countries
- This rate is expected to increase to 75 per cent by 2030
- At least one third of common cancers are preventable
- Genetic mutations play a role in 5 per cent to 10 per cent of cancers
- Up to 3.7 million lives could be saved annually by implementing the right health
strategies
- The total annual economic cost of cancer is $1.16 trillion
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
UAE currency: the story behind the money in your pockets
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
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
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
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
What She Ate: Six Remarkable Women & the Food That Tells Their Stories
Laura Shapiro
Fourth Estate
More from Rashmee Roshan Lall
What's%20in%20my%20pazhamkootan%3F
%3Cp%3E%3Cstrong%3EAdd%3A%3C%2Fstrong%3E%3Cbr%3EParippu%20%E2%80%93%20moong%20dal%20and%20coconut%20curry%3Cbr%3ESambar%20%E2%80%93%20vegetable-infused%20toor%20dal%20curry%3Cbr%3EAviyal%20%E2%80%93%20mixed%20vegetables%20in%20thick%20coconut%20paste%3Cbr%3EThoran%20%E2%80%93%20beans%20and%20other%20dry%20veggies%20with%20spiced%20coconut%3Cbr%3EKhichdi%20%E2%80%93%20lentil%20and%20rice%20porridge%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3E%3Cstrong%3EOptional%3A%3C%2Fstrong%3E%3Cbr%3EKootukari%20%E2%80%93%20stew%20of%20black%20chickpeas%2C%20raw%20banana%2C%20yam%20and%20coconut%20paste%3Cbr%3EOlan%20%E2%80%93%20ash%20gourd%20curry%20with%20coconut%20milk%3Cbr%3EPulissery%20%E2%80%93%20spiced%20buttermilk%20curry%3Cbr%3ERasam%20%E2%80%93%20spice-infused%20soup%20with%20a%20tamarind%20base%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3E%3Cstrong%3EAvoid%3A%3C%2Fstrong%3E%3Cbr%3EPayasam%20%E2%80%93%20sweet%20vermicelli%20kheer%3C%2Fp%3E%0A
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E153hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E200Nm%20at%204%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E6-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E6.3L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh106%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
RACECARD%20
%3Cp%3E%0D%3Cstrong%3E9pm%3C%2Fstrong%3E%20Maiden%20(PA)%20Dh70%2C000%20(Dirt)%202%2C000m%0D%3Cbr%3E%3Cstrong%3E9.30pm%3C%2Fstrong%3E%20Handicap%20(TB)%20Dh70%2C000%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3E10pm%3C%2Fstrong%3E%20Al%20Ain%20Cup%20%E2%80%93%20Prestige%20(PA)%20Dh100%2C000%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3E10.30pm%3C%2Fstrong%3E%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C800m%0D%3Cbr%3E%3Cstrong%3E11pm%20%3C%2Fstrong%3EWathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(D)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E11.30pm%3C%2Fstrong%3E%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3E12am%3C%2Fstrong%3E%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C400m%3C%2Fp%3E%0A
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
UAE currency: the story behind the money in your pockets
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
SPEC%20SHEET%3A%20APPLE%20IPHONE%2015%20PRO%20MAX
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%206.7%22%20Super%20Retina%20XDR%20OLED%2C%202796%20x%201290%2C%20460ppi%2C%20120Hz%2C%202000%20nits%20max%2C%20HDR%2C%20True%20Tone%2C%20P3%2C%20always-on%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20A17%20Pro%2C%206-core%20CPU%2C%206-core%20GPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20iOS%2017%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%20Triple%3A%2048MP%20main%20(f%2F1.78)%20%2B%2012MP%20ultra-wide%20(f%2F2.2)%20%2B%2012MP%205x%20telephoto%20(f%2F2.8)%3B%205x%20optical%20zoom%20in%2C%202x%20optical%20zoom%20out%3B%2010x%20optical%20zoom%20range%2C%20digital%20zoom%20up%20to%2025x%3B%20Photonic%20Engine%2C%20Deep%20Fusion%2C%20Smart%20HDR%204%2C%20Portrait%20Lighting%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%20video%3A%3C%2Fstrong%3E%204K%20%40%2024%2F25%2F30%2F60fps%2C%20full-HD%20%40%2025%2F30%2F60fps%2C%20HD%20%40%2030fps%2C%20slo-mo%20%40%20120%2F240fps%2C%20ProRes%20(4K)%20%40%2060fps%3B%20night%2C%20time%20lapse%2C%20cinematic%2C%20action%20modes%3B%20Dolby%20Vision%2C%204K%20HDR%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2012MP%20TrueDepth%20(f%2F1.9)%2C%20Photonic%20Engine%2C%20Deep%20Fusion%2C%20Smart%20HDR%204%2C%20Portrait%20Lighting%3B%20Animoji%2C%20Memoji%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%20video%3A%3C%2Fstrong%3E%204K%20%40%2024%2F25%2F30%2F60fps%2C%20full-HD%20%40%2025%2F30%2F60fps%2C%20slo-mo%20%40%20120%2F240fps%2C%20ProRes%20(4K)%20%40%2030fps%3B%20night%2C%20time%20lapse%2C%20cinematic%2C%20action%20modes%3B%20Dolby%20Vision%2C%204K%20HDR%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%204441mAh%2C%20up%20to%2029h%20video%2C%2025h%20streaming%20video%2C%2095h%20audio%3B%20fast%20charge%20to%2050%25%20in%2030min%20(with%20at%20least%2020W%20adaptor)%3B%20MagSafe%2C%20Qi%20wireless%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%2C%20Bluetooth%205.3%2C%20NFC%20(Apple%20Pay)%2C%20second-generation%20Ultra%20Wideband%20chip%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Face%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20USB-C%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP68%2C%20water-resistant%20up%20to%206m%20up%20to%2030min%3B%20dust%2Fsplash-resistant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20Dual%20eSIM%20%2F%20eSIM%20%2B%20eSIM%20(US%20models%20use%20eSIMs%20only)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Black%20titanium%2C%20blue%20titanium%2C%20natural%20titanium%2C%20white%20titanium%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%20%3C%2Fstrong%3EiPhone%2015%20Pro%20Max%2C%20USB-C-to-USB-C%20woven%20cable%2C%20one%20Apple%20sticker%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Dh5%2C099%20%2F%20Dh5%2C949%20%2F%20Dh6%2C799%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
