Non-oil business activity in the UAE grew in October, with enterprises reporting a surge in inventories ahead of an anticipated uptick in demand, even as cost burdens continue to rise.
The UAE Purchasing Managers’ Index (PMI), sponsored by Emirates NBD and produced by research firm IHS Markit, rose to 55.9 in October from 55.1 in September, and ahead of the historical series average of 54.6. A score of 50 or indicates growth in the country’s non-oil economy, while a figure below 50 indicates a contraction.
Emirates NBD attributed the higher score to rising output growth, linked to strong underlying demand in the non-oil economy, with companies reporting a sharp increase in new business during the month.
October also saw UAE businesses notch up a record expansion in stocks of purchases, in anticipation of higher demand, as business confidence hit a five-month high.
Such new business continues to come at a cost though; firms are continuing to discount selling prices to shore up demand in a deflationary environment, even as input costs rose for the fifth consecutive month.
The Institute of International Finance (IIF) this month forecast the UAE’s consumer price index will rise by just 1.6 per cent this year, down from 1.8 per cent last year.
“The increase in the UAE’s headline index in October reflects faster output growth and a sharp increase in inventories, as firms anticipate stronger demand in the coming weeks,” said Khatija Haque, head of MENA Research at Emirates NBD.
“However, the survey showed that firms continued to discount selling prices in order to support demand, and the employment growth remains modest.”
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In spite of rising cost pressures, businesses cut their charges for the second month in a row, as competition for new business intensifies. The rate of cost reduction was the fastest since March 2010, Emirates NBD noted.
The UAE’s non-oil growth is forecast to rise to 3 per cent in 2017 and 3.5 per cent in 2018, thanks to an easing of fiscal consolidation and an improvement in global trade, the IIF forecasts.
The Washington-based institute noted that the UAE has the financial buffers required to ease the pace of fiscal adjustment to reduce the impact on overall economic growth.
Non-oil business activity also rose in Saudi Arabia during October, even as higher business costs obliged a number of firms to increase prices.
Emirates NBD’s Saudi PMI score rose to 55.6 in October from 55.5 in September, on the back of rising output and new orders.
Business confidence rose in the kingdom during the month, with firms reporting stocks of purchases rising ahead of an anticipated further improvement in economic conditions.
“The headline PMI index for Saudi Arabia has been broadly stable for the last four months, at a level which suggests solid growth in the non-oil sector,” said Ms Haque. “Encouragingly, firms were much more optimistic in October than they were in September, which bodes well for growth in the final quarter of this year.”
Saudi Arabia's non-oil growth is forecast to rise to 1.7 per cent in 2017 from 0.2 per cent last year, according to forecasts by the IMF.
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UAE currency: the story behind the money in your pockets
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Formula One top 10 drivers' standings after Japan
1. Lewis Hamilton, Mercedes 306
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 234
4. Daniel Ricciardo, Red Bull 192
5. Kimi Raikkonen, Ferrari 148
6. Max Verstappen, Red Bull 111
7. Sergio Perez, Force India 82
8. Esteban Ocon, Force India 65
9. Carlos Sainz Jr, Toro Rosso 48
10. Nico Hulkenberg, Renault 34
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The specs
Engine: 2.0-litre 4-cylinder turbo
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How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
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Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
Volvo ES90 Specs
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Price: Exact regional pricing TBA
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
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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
Three trading apps to try
Sharad Nair recommends three investment apps for UAE residents:
- For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
- If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
- Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
RACE CARD
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8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
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The five pillars of Islam
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances