Latest news with #nonOilEconomy
The National
6 days ago
- Business
- The National
UAE non-oil business activity down in May amid tariff pressures
Business activity in the UAE's non-oil private sector slowed in May amid uncertainty stemming from the global tariff situation, although economic fundamentals remain "solid", S&P Global Market Intelligence said. The S&P Global Purchasing Managers Index for the Emirates declined to 53.3 last month from 54 in April, the agency said on Wednesday. Although well above the neutral 50 mark that separates expansion from contraction, the index was at its lowest since September 2021. Despite the dip, improvement in the UAE's non-oil economy remains strong as demand conditions remained robust, resulting in a marked increase in output, the report said. "Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth," said David Owen, a senior economist at S&P Global Market Intelligence. "From an overall perspective, the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing," he said. The report also highlighted a record decrease in input stocks, as companies looked streamline their operations. Businesses benefitted from a softer rise in input prices, as inflation decelerated to its lowest since December 2023. "The sharp cutback in stocks and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth," Mr Owen added. The UAE has been focusing heavily on diversifying its economy from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The UAE's economy grew by 3.9 per cent in 2024, the Central Bank reported in April, with the non-oil growth up 4.6 per cent. The banking regulator expects the country's GDP to expand at 4.7 per cent this year, with non-oil growth at 5.1 per cent. The economy is expected to grow by 5.7 per cent in 2026. Globally, the sweeping US tariffs continue to cast a cloud of uncertainty over trade and supply chains, especially with US President Donald Trump remaining unpredictable over his policies. A number of companies in the UAE have said these tariffs have either no or minimal impact on their businesses, as they benefit from established local supply chains, and they are monitoring the situation so they can adjust accordingly. "Higher sales often translated into greater activity, although some reported that global economic uncertainty linked to US tariffs had negatively affected output," analysts at S&P Global said in the report. Meanwhile, Dubai's PMI remained at 52.9 in May, its joint lowest since the beginning of 2022, but S&P highlighted a "solid expansion" in operating conditions across the non-oil private sector. Businesses continued to receive higher levels of new orders, with the rate of growth ticking up to a four-month high. Panellists linked the upturn to improved client confidence and positive effects from marketing strategies and competitive pricing, it added.
Zawya
19-05-2025
- Business
- Zawya
Non-oil sources will generate 50% of Saudi Arabia's future revenues: Trump
RIYADH - US President Donald Trump said that within a few years 50 percent of Saudi Arabia's income will come from non-oil sources. He made the remarks while commenting on his recent visit to Saudi Arabia and two other Gulf states in a television interview with Fox News. Trump's statement validates the performance results of the annual Vision 2030 report. According to the report, non-oil activities in Saudi Arabia have contributed 51 percent of real GDP in 2024, driven by Vision 2030, marking an all-time high. The report is based on analysis by the Ministry of Economy and Planning of data from the Saudi General Authority for Statistics (GASTAT). In the interview, Trump stated that former President Joe Biden has not handled the Middle East well. 'The Middle East is a wonderful region and Biden has not handled it well," he said. President Trump on Friday wrapped up a momentous week in the Middle East and is headed home having finished the final leg of his three-nation trip to the UAE. This visit coincided with Saudi Arabia's unveiling of its new AI venture, Humain, part of broader efforts to diversify its economy away from oil. The trip was largely economically focused with massive investment deals secured with Riyadh, Doha and Abu Dhabi. The president also made geopolitical shockwaves by lifting decades-long sanctions on Syria, issuing another warning to Iran, and downplaying hard fought peace talks between Ukraine and Russia. Ahead of his trip to the Gulf, the president said he intended to return home with at least $1 trillion in trade and investment deals – though he far outstripped this apparent goal. While in Saudi Arabia, Trump signed a Strategic Economic Partnership agreement with Crown Prince Mohammed bin Salman, which will see Riyadh invest in U.S. AI data centers and energy infrastructure, and investment in cutting-edge transformative technologies in both countries. These include several agreements on energy, investments, defense and mining. The investments amounted to a total of $600 billion. The agreement also included a commitment by Google, Uber, Salesforce, AMD and Saudi Arabia's DataVolt to invest $80 billion toward the development of revolutionary technologies in both countries. American companies will also take on major projects in Saudi Arabia, including the King Salman International Airport, King Salman Park, The Vault and Qiddiya City, according to the White House. The administration predicts the projects will generate a total of $2 billion in U.S. service exports. Trump was also able to secure an agreement that would allow the U.S. to carry cargo between Saudi Arabia and third-party countries without stopping in the U.S., which the White House said is "an important right for cargo hub operations." © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
