Non-oil business activity in the UAE had the strongest third quarter in two years on the back of strong growth in output and jobs, a key economic gauge for the second biggest Arabian Gulf economy showed.
The UAE Purchasing Managers' Index, sponsored by Emirates NBD and produced by IHS market, showed the average PMI for three months ending September 30 was 56.1, the strongest since the third quarter of 2015, when it was at 56.3. For the month of September gauge slowed to 55.1 from 57.3 in August as the pace of expansion dipped from the four-month high in August.
"Although the headline purchasing managers index eased slightly in September, the average reading for the third quarter was the highest in two years, underpinned by strong growth in output and new work," said Khatija Haque, the head of Middle East and North Africa research at Emirates NBD.
"The survey suggests that economic growth accelerated last quarter, and that domestic demand remains solid, despite relatively modest jobs growth."
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[ UAE central bank reduces liquidity as signs of economic recovery increase ]
[ Dubai’s non-oil private sector unchanged in August ]
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While there was a decrease in new orders from abroad, the data suggested orders from the domestic market rose. Meanwhile, the level of employment continued to rise in September, the 17th month in succession, even though it eased slightly in August. As in previous months this year, companies said that they had dropped selling prices to attract buyers.
The UAE's non-oil economy, which has been subject to lower growth in recent years, is set to get a boost from a pick-up in government spending ahead of Expo 2020.
Economists also say that an improvement in the global economy is aiding tourism and real estate. The global economy is forecast to grow 3.5 per cent this year before accelerating to 3.7 per cent in 2018, the best rate since 2011, according to the OECD.
Consumer confidence, which has also been improving in the UAE, is set to get a lift from the introduction of a value added tax as people buy durable goods before the 5 per cent levy is introduced on January 1, 2018.
Non-oil GDP is forecast to expand by 3.3 per cent this year from 2.7 per cent last year, the IMF said in May. Abu Dhabi Commercial Bank and Standard Chartered, the emerging market specialist lender based in London, are both forecasting that the non-oil economy will grow 3.2 per cent this year compared to 2.7 per cent last year.
In Saudi Arabia, the Arab world's largest economy, the kingdom's PMI, also sponsored by Emirates NBD and undertaken by IHS Market, slipped to 55.5 in September from 55.8 in August. Even though the rate of expansion slowed, those surveyed said there is strong underlying demand as firms, like those in the UAE, reduced selling prices to boost sales.
"The PMI for Saudi Arabia has been relatively stable in the third quarter, signalling a solid expansion in non-oil sector growth last quarter," Ms. Haque said.
"While output and new order growth has remained strong, external demand was softer compared to a year ago, as was employment growth. The announcement of key reforms and a successful US$12 billion debt issue in late September should have a positive impact on both sentiment and business activity in the coming weeks."
Firms polled by the IHS said that they anticipated an uptick in business activity in the next 12 months.
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Company profile
Date started: January 2022
Founders: Omar Abu Innab, Silvia Eldawi, Walid Shihabi
Based: Dubai
Sector: PropTech / investment
Employees: 40
Stage: Seed
Investors: Multiple
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Results for Stage 2
Stage 2 Yas Island to Abu Dhabi, 184 km, Road race
Overall leader: Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Fernando Gaviria COL (UAE Team Emirates) 2. Elia Viviani ITA (Deceuninck - Quick-Step) 3. Caleb Ewan AUS (Lotto - Soudal)
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
The Transfiguration
Director: Michael O’Shea
Starring: Eric Ruffin, Chloe Levine
Three stars
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
MATCH INFO
Euro 2020 qualifier
Russia v Scotland, Thursday, 10.45pm (UAE)
TV: Match on BeIN Sports