Manufacturing will likely slow as incomes rise more slowly, and demand becomes weaker, one analyst said. Delores Johnson / The National
Manufacturing will likely slow as incomes rise more slowly, and demand becomes weaker, one analyst said. Delores Johnson / The National
Manufacturing will likely slow as incomes rise more slowly, and demand becomes weaker, one analyst said. Delores Johnson / The National
Manufacturing will likely slow as incomes rise more slowly, and demand becomes weaker, one analyst said. Delores Johnson / The National

Weaker industrial output in Abu Dhabi signals slowing economic growth


  • English
  • Arabic

Industrial production in Abu Dhabi fell in the first three months of the year, in the latest sign that economic growth in the emirate is slowing.

The industrial production index dipped 0.5 per cent in the first quarter from the same period last year. It was led by weaker activities in transport equipment and paper manufacturing, which both shrank more than 60 per cent.

The index is a measure of manufacturing output that Statistics Centre Abu Dhabi publishes quarterly.

The value of construction projects in Abu Dhabi awarded in the first three months fell significantly from the previous quarter, according to data published earlier this year by Abu Dhabi Commercial Bank.

But the bank said that US$25 billion of new projects were set to be awarded in the second quarter, up from the $8bn confirmed for the first quarter.

That indicates that project awards can vary significantly over time, and that it is probably too soon to determine whether infrastructure spending will decelerate.

“Over the coming years, the government probably won’t push ahead with projects as fast as it has done,” said Jason Tuvey, an emerging markets economist at Capital Economics.

“They will be more prudent and put less priority on some projects more than others. As projects are delayed, this will slow growth in the non-oil economy.

Mr Tuvey said the emirate was not under massive fiscal pressure because of its significant financial reserves.

“But over a longer-term horizon, there is a good argument to cut energy subsidies instead of infrastructure spending, because higher domestic oil consumption eats into earnings from oil that could otherwise be re-exported,” he said.

“Manufacturing is part of the non-oil sector, and it will likely slow as incomes rise more slowly, and demand becomes weaker.”

Sultan Al Mansouri, the Minister of Economy, said last month that the UAE would not cut core infrastructure spending over the next five years.

“When it comes to infrastructure such as hospitals, schools, roads, wherever that is needed, we have the capacity to finance it,” he said. “None of that is going to be affected in the next four to five years.”

The IMF last month downgraded the UAE’s growth forecast for the third time in six months. It now expects that the UAE’s economy will grow 3 per cent this year, down from its projection last year of 4.5 per cent growth.

That was driven by an expected fall in non-oil growth to 3.4 per cent this year, down from 5.2 per cent last year and 5.4 per cent in 2013.

“Growth in the Gulf will slow over the coming years, particularly as fiscal policy becomes less supportive,” said Mr Tuvey.

abouyamourn@thenational.ae

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Dubai World Cup Carnival card

6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m

7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m

7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m

8.15pm: Handicap (TB) $175,000 (D) 1,600m

8.50pm: Handicap (TB) $135,000 (T) 1,600m

9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m

10pm: Handicap (TB) $135,000 (T) 2,000m

The National selections:

6.30pm - Ziyadd; 7.05pm - Barney Roy; 7.40pm - Dee Ex Bee; 8.15pm - Dubai Legacy; 8.50pm - Good Fortune; 9.25pm - Drafted; 10pm - Simsir

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Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

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Text the following numbers:

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Cryptocurrency Investing  for Dummies – by Kiana Danial 

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Stage 3 results

1 Adam Yates (GBR) Mitchelton-Scott 4:42:33

2 Tadej Pocagar (SLO) UAE Team Emirates 0:01:03

3 Alexey Lutsenko (KAZ) Astana 0:01:30

4 David Gaudu (FRA) Groupama-FDJ

5 Rafal Majka (POL) Bora-Hansgrohe         

6 Diego Ulissi (ITA) UAE Team Emirates  0:01:56

General Classification after Stage 3:

1 Adam Yates (GBR) Mitchelton-Scott 12:30:02

2 Tadej Pocagar (SLO) UAE Team Emirates 0:01:07

3  Alexey Lutsenko (KAZ) Astana 0:01:35

4 David Gaudu (FRA) Groupama-FDJ 0:01:40

5  Rafal Majka (POL) Bora-Hansgrohe

6 Wilco Kelderman (NED) Team Sunweb)  0:02:06

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

Monday's results
  • UAE beat Bahrain by 51 runs
  • Qatar beat Maldives by 44 runs
  • Saudi Arabia beat Kuwait by seven wickets
ASHES SCHEDULE

First Test
November 23-27 (The Gabba, Brisbane)
Second Test
December 2-6 (Adelaide Oval, Adelaide)
Third Test
December 14-18 (Waca Ground, Perth)
Fourth Test
December 26-30 (Melbourne Cricket Ground, Melbourne)
Fifth Test
January 4-8, 2018 (Sydney Cricket Ground, Sydney)

RESULTS

5pm: Sweihan – Handicap (PA) Dh80,000 (Turf) 2,200m
Winner: Shamakh, Fernando Jara (jockey), Jean-Claude Picout (trainer)

5.30pm: Al Shamkha – Maiden (PA) Dh80,000 (T) 1,200m
Winner: Daad, Dane O’Neill, Jaber Bittar

6pm: Shakbout City – Maiden (PA) Dh80,000 (T) 1,200m
Winner: AF Ghayyar, Tadhg O’Shea, Ernst Oertel

6.30pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,200m
Winner: Gold Silver, Sandro Paiva, Ibrahim Aseel

7pm: Masdar City – Handicap (PA) Dh80,000 (T) 1,400m
Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel

7.30pm: Khalifa City – Maiden (TB) Dh80,000 (T) 1,400m
Winner: Ranchero, Patrick Cosgrave, Bhupat Seemar

Scoreline

Al Wasl 1 (Caio Canedo 90 1')

Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')

Red cards: Ismail Ahmed (Al Ain) 77'

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Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.  

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Titanium Escrow profile

Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue  
Stage: Early stage
Investors: Founder's friends and Family