Business conditions in Saudi Arabia’s non-oil private sector improved to their highest level since December 2017, driven by a rise in output and new orders, according to Emirates NBD’s latest survey.
The Saudi Arabia Purchasing Managers’ Index (PMI) – a composite indicator produced by Dubai's largest lender with IHS Markit, which provides an overview of operating conditions in the non-oil private sector economy – rose to a 14-month high of 56.6 in February, from 56.2 in January. This brought the headline index closer to its long-run average of 57.6 since August 2009, although non-oil growth in the kingdom is still weaker than in previous years, Emirates NBD said.
Growth in February was driven by the sharpest increase in new business since August 2015, and by rise in order growth to a three-month high, according to the index. Export sales were down on the month, indicating that stronger demand came principally from the domestic market.
Overall operating expenses of companies were little changed in February, as a slight rise in average staff pay was offset by a marginal fall in purchasing costs. Average prices charged for goods and services were stable. A decrease in selling prices has been recorded in each month since November. However, in February, fewer companies reported offering discounts amid stronger underlying demand.
Meanwhile, overall input costs eased for the second month in a row, providing some relief for company margins as selling prices were broadly stable, Emirates NBD said. There was also an increase in purchasing activity, as businesses sought to reflect higher output requirements.
“Businesses increased their stock of pre-production inventories at the fastest rate since September, likely reflecting both the rise in new orders and optimism for future order growth. More than half of firms surveyed expect their output to be higher in a year’s time," said Khatija Haque, head of Mena research at Emirates NBD, on Tuesday.
However, companies continued to report strong competitive pressures, which eroded their pricing power, the bank said. Employment was broadly flat month-on-month, with fewer than 1 per cent of companies surveyed reporting more hiring and the employment index hovering at its lowest in nearly five years in February amid tighter cost management.
The improvement in the PMI follows a brighter outlook for the Saudi economy as a whole in January. Credit to the private sector rose for tenth straight month, rising 2.4 per cent year on-year in January, while bank claims to the public sector also grew 19.5 per cent year-on-year. Consumer spending accelerated on an annual basis in January as reflected by the improvement in points of sale transactions, which were up by 31.8 per cent year-on-year, and ATM withdrawals, which grew 1.6 per cent year-on-year.
Meanwhile, the Emirates NBD UAE PMI slipped to a 28-month low due to a weaker rise in business in February compared with January.
The PMI fell to 53.4 in February from 56.3 in January, Emirates NBD said
"The rate of input cost inflation remained muted, while price discounting continued as firms competed to secure new work," said the survey.
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
THREE
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How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
The biog
Name: Ayisha Abdulrahman Gareb
Age: 57
From: Kalba
Occupation: Mukrema, though she washes bodies without charge
Favourite things to do: Visiting patients at the hospital and give them the support they need.
Role model: Sheikha Fatima bint Mubarak, Chairwoman of the General Women's Union, Supreme Chairwoman of the Family Development Foundation and President of the Supreme Council for Motherhood and Childhood.
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
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
