Businesses in the UAE are continuing to grow at a faster pace than companies in other parts of the world. Pawan Singh / The National
Businesses in the UAE are continuing to grow at a faster pace than companies in other parts of the world. Pawan Singh / The National
Businesses in the UAE are continuing to grow at a faster pace than companies in other parts of the world. Pawan Singh / The National
Businesses in the UAE are continuing to grow at a faster pace than companies in other parts of the world. Pawan Singh / The National

Export orders pick up pace in private sector


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Export orders for UAE private sector firms expanded at their fastest rate in nearly a year-and-a-half last month.

The expansion helped the non-oil private sector to remain firmly in expansion territory, according to the HSBC purchasing managers' index, released yesterday.

The headline score clocked in at 53.8, the same reading as the previous month. A score of 50 separates expansion in activity from contraction.

"The increased level of production was driven by marked growth of new orders. Anecdotal evidence linked the increase in incoming new work to greater demand, particularly in international markets," the HSBC economists Simon Williams and Liz Martins wrote in a report of the data. Employment growth picked up during the month, although the increase in staff costs was modest.

The data signals that businesses in the UAE are continuing to grow at a faster pace than companies in other parts of the world. In the euro zone, Markit's PMI fell to 45.4 last month, while a similar HSBC survey for China showed the reading slipped to 53.5.

Still, the data suggests companies are continuing to experience difficulties in some areas. While input prices rose again last month, the increase was at a slower rate than in previous months.

But output prices - how much companies charge for their goods and services - climbed more sluggishly, signalling that producer margins remain under pressure.

Saudi Arabia's PMI reading was even more robust than the UAE's score.

The kingdom's overall score came in at 59.8 last month, down slightly from the month before, but still one of the highest readings in the world.

Output and new orders indexes were even stronger, with 41 per cent of firms reporting growth in new business.

"Given the weak global backdrop, we continue to see domestic demand as the key driver of growth for Saudi Arabia," wrote Mr Williams and Ms Martins.

However, businesses also reported a rise in overseas orders during the month. The stronger external reading chimed with similar data from several other emerging markets during the month, HSBC wrote.

Unlike the UAE, output costs rose at a faster pace during the month in Saudi Arabia. Prices edged up to a 16-month high of 53.7.

"Given the combination of robust growth, fiscal and monetary stimulus and elevated global commodity prices, the uptick in output prices may be an early indicator of greater pressure on consumer prices going forward," wrote Mr Williams and Ms Martins.

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UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
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Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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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

 

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Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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First round
Roger Federer (SUI x2) bt Philipp Kohlschreiber (GER) 6-4, 3-6, 6-1
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2007 Osaka

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Public Affairs

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PAST 10 BRITISH GRAND PRIX WINNERS

2016 - Lewis Hamilton (Mercedes-GP)
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UAE currency: the story behind the money in your pockets
Mercedes-AMG GT 63 S E Performance: the specs

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