Business activity in the non-oil private sector economies of Saudi Arabia and the UAE continued to strengthen in June, with output and new orders increasing rapidly.
The reading for Saudi Arabia, the Arab world's largest economy, on the Riyad Bank purchasing managers' index rose to 59.6 in June, from 58.5 in May.
This was well above the neutral 50-point mark that separates growth from contraction, as output in the kingdom rose at the steepest rate since March 2015, while sales growth was the strongest in about nine years.
Business activity in the UAE’s non-oil private sector also strengthened as new order growth hit a four-year high in June, marking the most pronounced improvement since June 2019.
The health of the non-oil private sector has now improved in each of the past 31 survey periods.
The seasonally adjusted S&P Global purchasing managers’ index reading of the Arab world's second-largest economy climbed to 56.9 in June, from 55.5 in May.
In response to an uptick in both output and new orders, companies in Saudi Arabia increased their purchasing activity at the fastest pace in the PMI survey's history to meet higher business requirements and bolster stock, with the rate of inventory accumulation hitting a ten-month high.
"The kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities," said Riyad Bank chief economist Naif Al-Ghaith.
Job growth in the kingdom was maintained, with some companies reporting that they were paying higher wages to retain experienced staff.
Increased demand and improved market conditions drove employment growth to its strongest level since August 2015.
"Looking ahead, positive sentiments for activity are still strong," Mr Al-Gaith said.
"The recent pick-up in demand and sales has improved confidence across industries and expectations of an extension of these positive trends in the coming months.
"Ultimately, the government-backed investments, particularly in construction or infrastructure projects, remain ... vital for business activity.”
Emirates NBD is forecasting non-oil growth of 4.8 per cent in Saudi Arabia this year, unchanged from 2022.
Meanwhile in the UAE, new business improved rapidly in June, with the rate of expansion hitting a four-year high, largely supported by an increase in new orders from abroad that was fuelled by stronger customer demand.
The increase in employment extended the current sequence of job creation to 14 months, according to the survey.
Higher staffing levels were linked to rising workloads and the recruitment of additional sales workers.
"The extent of the inflows in new work was such that backlogs of work continued to rise in June despite a ramping up of activity, further job creation and an expansion of purchasing activity," said Andrew Harker, economics director at S&P Global Market Intelligence.
"This should therefore support further increases in staffing levels in the months to come as firms try to keep on top of workloads. All in all, the non-oil private sector remained on a strong footing at the midway point of the year, and is well placed for further growth in H2 [the second half]."
Non-oil growth in the UAE is forecast at 5.0 per cent this year, according to Emirates NBD.
In Egypt, the non-oil private sector economy registered its slowest decline in output in about two years as the PMI reading rose to a 22-month high, but remained within contraction territory.
The country's headline S&P Global Egypt Purchasing Managers’ Index rose to 49.1 in June, from 47.8 in May, its highest level since August 2021.
Price pressures, liquidity issues and weak demand drove total business activity volumes lower at the end of the second quarter, but the rate of decline was the weakest in 21 months.
"After the steep price increases seen at the start of the year, fewer companies are reporting such high cost pressures," said Joe Hayes, principal economist at S&P Global Market Intelligence.
"The overall rate of input price inflation cooled to a 16-month low during June, which led output charges to rise at a slightly weaker rate.
"If key survey indicators such as output and new orders can sustain their upward current trajectory, we may see an improvement in business sentiment in the coming months."
PFA Team of the Year: David de Gea, Kyle Walker, Jan Vertonghen, Nicolas Otamendi, Marcos Alonso, David Silva, Kevin De Bruyne, Christian Eriksen, Harry Kane, Mohamed Salah, Sergio Aguero
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
How it works
Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.
As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.
A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.
Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.
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
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
More coverage from the Future Forum
UAE currency: the story behind the money in your pockets
Messi at the Copa America
2007 – lost 3-0 to Brazil in the final
2011 – lost to Uruguay on penalties in the quarter-finals
2015 – lost to Chile on penalties in the final
2016 – lost to Chile on penalties in the final
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes.
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com
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