Business activity in the non-oil private sectors of the UAE and Saudi Arabia continued to strengthen in October, with the kingdom recording a faster pace of expansion, hitting the strongest level in six months amid continued economic momentum.
The seasonally adjusted Riyad Bank purchasing managers’ index – a benchmark for the health of Saudi Arabia’s non-oil economy – advanced to 56.9 in October, from 56.3 a month earlier, remaining well above the neutral 50 mark that separates growth from contraction.
The headline PMI rose for the third month in a row and signalled another sharp upturn in operating conditions across the non-oil private sector of the Arab world’s largest economy.
The rise in the PMI was mainly driven by a stronger increase in sales volumes at the beginning of the final quarter of the year. Businesses surveyed said higher client demand, a greater uplift in economic conditions and focus on infrastructure development supported new business growth, which reached the highest level since March.
“This growth is part of a steady expansion trend since September 2020, driven by increasing demand and aligning with the goals of Vision 2030,” said Naif Al-Ghaith, chief economist at Riyad Bank. “The comprehensive sectoral gains reflect a strong business environment, supported by government initiatives and heightened private sector engagement, aligning with ongoing projects under Vision 2030 that aim to diversify the economy and reduce reliance on oil.”
The rate of business expansion also accelerated from September, as the survey data continued to signal a broad-based growth in Saudi Arabia’s non-oil economy. Optimism for the future business activity in the kingdom also improved in October compared with the previous month.
Saudi Arabia, Opec’s top oil producer, is pushing to diversify its economy away from oil under Vision 2030. The overarching economic reform agenda aims to accelerate the development of sectors including technology, property, tourism and infrastructure, boosting employment and expanding the non-oil industrial base in the kingdom. Expanding its financial markets and increasing foreign direct investment are also among the central planks of the programme.
Saudi Arabia estimates its economy to expand by 0.8 per cent this year, supported by a 3.7 per cent growth its non-oil sector, according to the latest data from the kingdom’s Finance Ministry. The kingdom’s gross domestic product is projected to grow by 4.6 per cent in 2025, 3.5 per cent in 2026 and 4.7 per cent in 2027.
Non-oil economic growth in the past few years has also been supported by government initiatives, including opening various sectors for foreign investment. The kingdom is developing several giga projects across sectors including property, tourism, entertainment and infrastructure.
UAE PMI improves
The S&P Global PMI for the UAE rose to 54.1 in October, up from 53.8 a month earlier, the best rate of expansion since April this year. The increase was supported by a “marked and faster increase in business activity”.
Business sentiment picked up from September's 18-month low, with companies surveyed expecting growth to continue over the coming 12-month period. Momentum was also supported by input cost inflation dipping to the lowest since April.
But growth of new orders in the second-largest Arab economy softened to its lowest since February 2023, which contributed to weaker job creation and a renewed drop in selling charges.
The slower pace of expansion in the UAE’s non-oil economy follows a “robust growth period in late-2023 and early-2024”, but businesses said the “crowding in the market was eating into sales, and hitting job creation”, said David Owen, senior economist at S&P Global Market Intelligence.
"Firms reduced their output prices for the first time in six months in a bid to try and reverse this slowing sales trend. Positively, this came at the same time as input price pressures softened, likewise to a six-month low,” he added.
The comprehensive sectoral gains reflect a strong business environment, supported by government initiatives and heightened private sector engagement, aligning with ongoing projects under Vision 2030 that aim to diversify the economy and reduce reliance on oil
Naif Al-Ghaith,
chief economist at Riyad Bank
The UAE economy, which grew by 3.4 per cent in the first quarter of 2024, is expected to expand by 4 per cent this year on the back of a boost from its non-oil sector, the latest data from the Central Bank of the UAE shows.
The non-oil sector in the Emirates is projected to expand by 5.2 per cent in 2024 and 5.3 per cent in the following year, on strengthening foreign investments across sectors. Government measures such as the 100 per cent ownership of foreign businesses as well the tax reforms instituted in the country are also supporting growth, the CBUAE said.
Non-oil foreign trade in the first six months of this year, jumped to record Dh1.4 trillion ($381.5 billion), driven by the recent flurry of economic and trade deals the country has signed with partners across continents. With continued economic and trade momentum providing tailwinds, “there are some reasons to suggest this [PMI index rise] could hold up, not least that firms are still seeing a long pipeline of work backlogs and ongoing contracts", Mr Owen said. “This may ensure that the non-oil economy can continue to grow even if sales momentum slows further, though it may be more difficult to keep up this pace."
Contraction in Egypt
Egyptian companies in the non-oil private sector continued to see a decline in business activity as the final quarter of 2024 began. Strong cost pressures led to another increase in overall selling prices and a drop in new order volumes dented sentiment.
The S&P Global Egypt PMI was at 49, remaining below the neutral level 50 for the second month in a row, although it improved fractionally from 48.8 recorded in September.
This headline reading “signals a deterioration in overall conditions” driven by a sharp fall in business activity and new orders last month. Businesses surveyed also referred to a sales decline due to weak market conditions, as well as further pressure from rising prices. "That said, with the PMI at 49 in October, Egypt's non-oil economy is not too far from growing again,” Mr Owen said.
UAE SQUAD
Ahmed Raza (Captain), Rohan Mustafa, Jonathan Figy, CP Rizwan, Junaid Siddique, Mohammad Usman, Basil Hameed, Zawar Farid, Vriitya Aravind (WK), Waheed Ahmed, Karthik Meiyappan, Zahoor Khan, Darius D'Silva, Chirag Suri
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
UAE currency: the story behind the money in your pockets
21 Lessons for the 21st Century
Yuval Noah Harari, Jonathan Cape
Sweet%20Tooth
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SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Sholto Byrnes on Myanmar politics
Results
%3Cp%3E%3Cstrong%3EStage%202%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Soudal%E2%80%93Quick-Step%20-%2018%E2%80%9911%E2%80%9D%3Cbr%3E2.%20EF%20Education%20%E2%80%93%20EasyPost%20-%201%22%3Cbr%3E3.%20Ineos%20Grenadiers%20-%203%22%3Cbr%3E%3Cstrong%3EGeneral%20classification%3A%3C%2Fstrong%3E%3Cbr%3E1.%20Lucas%20Plapp%20(AUS)%20Ineos%20Grenadiers%3Cbr%3E2.%20Remco%20Evenepoel%20(BEL)%20Soudal%E2%80%93Quick-Step%20-%20ST%3Cbr%3E3.%20Nikias%20Arndt%20(GER)%20Bahrain%20Victorious%20-%203%22%3C%2Fp%3E%0A
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.
ON%20TRACK
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How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
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
The%20Beekeeper
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
Price: from Dh282,870
On sale: now
