Purchasing managers’ index

The UAE’s non-oil private sector saw a slight improvement in June despite a slowdown in demand on the back of regional tensions, with the S&P Global PMI (pdf) edging up to 53.5 from 53.3 in May. The uptick was driven by stronger output and a stabilization in inventories, though new order growth slowed to its weakest pace in 45 months, while export growth was softer than domestic demand, according to a note (pdf) from Emirates NBD.REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.Firms cited client hesitation amid ongoing instability following the conflict between Iran and Israel, though some were able to cushion the impact through promotions and by expanding customer bases. “The UAE non-oil sector showed signs of a minor setback in June due to the conflict between Israel and Iran,” S&P Global’s David Owen said, adding that the impact, however, was “negligible” considering the expansion in output.On the bright side, backlogs increased at the slowest pace in 17 months, as companies worked to clear long-standing capacity pressures. Purchasing activity also recovered modestly, while softer inflation in input prices — easing to an almost two year low — allowed firms to lower selling prices marginally for the first time in six months, in a bid to remain competitive.June also saw a slight uptick in employment, though growth slowed in comparison to the rest of the quarter. Firms continued to recruit for workload management, though some flagged difficulty sourcing skilled labor.Business confidence has not been impacted by the escalation in regional tensions, though, with confidence at its highest in seven months, attributed to projected sales growth and hopes of regional stability. “[A] rebound in sales growth is wholly possible in the coming months should regional tensions ease,” Owen said.MEANWHILE IN DUBAI-Conditions in Dubai weakened further in June, with the emirate’s PMI falling to a four year low on the back of a slowdown in new orders after 45 months of growth. Output also slowed with firms citing weaker demand in tourism following regional tensions, as well as heightened competition. June also saw the emirate record an uptick in overall business activity.Employment and pricing trends remained muted, with employment growth continuing for the third straight month but at only a marginal pace. Output prices continued to rise, albeit marginally as input inflation eased to an 18-month low.The story got ink from Reuters and Bloomberg.ELSEWHERE IN THE REGION- Saudi Arabia’s non-oil sector seemed to shrug off concerns over regional tensions and low oil prices, with the PMI ticking up (pdf) to 57.2 in June, up from 55.8 in May.

Non-oil activity sees slowest growth in nearly four years in May: The UAE’s non-oil activity expanded at the slowest pace since September 2021, as “global economic uncertainty linked to US tariffs [...] negatively affected output,” according to the S&P Global UAE PMI (pdf). The headline figure came in at 53.3 in May, down from 54.0 in April.REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.New orders slowed, while employment ramped up: The new orders subindex fell to 56.2 in May, down from 56.9 in April, in what is the softest pace of new order growth in seven months, according to Reuters. However, the continued growth in new orders was attributed to “favourable demand conditions, good relationships with clients, new marketing strategies and diverse product ranges.” Meanwhile, employment grew at its strongest rate in a year, with rising new orders creating elevated workloads.Output increased, but at a comparatively slower rate: The output sub index for output fell to 57.3 in May from 59.4 in April, in what is the lowest reading since September 2021. However, the expansion in output was still “sharp,” supported by demand conditions remaining strong throughout the month. The drop in output growth was partially attributed to “globaleconomic uncertainty,” following “a particularly robust sequence of growth.”Input purchases saw a record decrease during the month, with companies looking to “streamline holdings amid slowing momentum.” Growth in backlogs also dropped to a 16-month low during the month. However, this came with a drop in input price inflation, which fell to its lowest since December 2023 due to “due to the modest increase in raw material prices and staffing costs,” NBK Senior Economist Issa Hijazeen told EnterpriseAM. Still, output prices increased for the fifth consecutive month. “The sharp cutback in stocks (which was the fastest on record) and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth,” S&P Global’s David Owen said.Business sentiment has slowed down: “Businesses gave a modest assessment of their activity prospects in May. Optimism eased to its lowest since January, with nearly 10% of companies anticipating an expansion in the year ahead,” the report reads.MEANWHILE, IN DUBAI-Business conditions in Dubai remained unchanged from the previous month, with the Dubai PMI remaining at 52.9 in May, in what is the emirate’s joint-lowest reading since the beginning of 2022. Still, businesses continued to receive increased levels of new orders, with the rate of growth ticking up to a four-month high on the back of “improved client confidence” coupled with “positive impacts from marketing strategies and competitive pricing.”On the flipside, input purchases decreased for the first time this year, and job creation was mild during the month, according to the report.

Non-oil activity remains unchanged in April: The UAE’s non-oil activity saw growth levels remaining largely unchanged from the previous month, with robust business activity indicating “a solid strengthening of operating conditions,” according to S&P Global UAE PMI (pdf). The headline figure came in at 54.0 during the month, remaining unchanged from March.REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.New orders and employment were up: The new orders subindex rose slightly to 56.9 in April, up from 56.3 in March, partially driven by the strongest upturn in international demand for five months, which came in tandem with increased domestic clients, Reuters writes. Meanwhile, hiring went up to its highest level in nearly a year, with the subindex for employment registering a reading of 51.4 as firms “increased hiring to manage work backlogs and support future business activity,” National Bank of Kuwait's Issa Hijazeen told EnterpriseAM UAE. However, “employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” S&P Global senior economist David Owen saidBusiness activity also continued to rise, but it did so at its slowest pace in seven months, with firms indicating that they faced difficulties with completing existing work amid payment delays. Meanwhile, input purchases saw a considerable increase during the month, with companies reporting growing demand for materials and components. However, the growth in input purchases slowed from March’s 68-month high. Stock levels also mostly remained unchanged, as growth in the stocks of some firms was offset by reductions elsewhere.Input prices were also on the rise, with firms reporting upticks in both purchasing and staff costs. Output prices rose in tandem with this increase, but they did so at a slower pace than March, as companies looked to lower prices amid strong competition. Business sentiment remains positive: “Looking ahead, surveyed firms remained confident that sales pipelines and resilient market conditions would support activity going forward. The degree of confidence ticked up for the third month running and was the best recorded in 2025 so far,” the report reads. “Firms are also hopeful that elevated demand levels and strong pipelines, as characterised by steeply rising backlogs, should propel activity higher in the coming months," Owen said.MEANWHILE, IN DUBAI-Business conditions in Dubai improved at a slower pace in April, with the Dubai PMI slipping to a low of 52.9 in April, down from 53.2 in March, with firms reporting the “the slowest pace of growth since last October,” the report reads. However, order book volumes continued to increase, with output levels increasing slightly from the three-and-a-half-year low recorded in March. Employment also expanded during the month, as firms looked to bring up their capacity. On the flip side, confidence is taking a hit: Contrary to overall UAE sentiment, “[Dubai] companies showed a lower degree of confidence towards future activity levels. In fact, expectations were among the weakest on record,” according to the report.

Non-oil activity accelerates at slowest pace in seven months: The UAE’s non-oil activity saw a “mild slowdown” in growth in March, with business activity continuing to improve, but at the slowest pace recorded since September of last year, according to S&P Global UAE PMI (pdf). The headline figure reached 54.0 during the month, down from 55.0 in February.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.New order and output growth slowed, as did employment: The new orders subindex fell to 56.3 in March, down from 57.3 in February, with businesses seeing continued strong competition and subdued growth in new export orders, Reuters writes. “A third consecutive month-on-month softening of new order growth shows that some firms could be encountering challenges in meeting their sales targets,” S&P Global senior economist David Owen said. “Output growth eased to 59.6 in March while new orders growth slowed to its lowest pace in five months,” National Bank of Kuwait's Issa Hijazeen told EnterpriseAM UAE. “Moreover, employment growth continued to slow, nearing the neutral benchmark at 50.2.”Input purchases rose sharply despite the slowdown: Businesses’ purchasing activity jumped to its fastest pace since mid-2019, with firms showing “resilience” in working to clear backlogs of work, Hijazeen said — as evident from a concurrent dip in total inventories. Meanwhile, input prices rose at a moderate pace during the month, with some firms reporting a rise in material costs on the back of rising input demand, while others reported a drop in transportation costs, “reflecting firms’ efforts to preserve their profit margins,” Hijazeen said. “Hiring remains a significant concern, with March's employment increase marking the weakest growth in nearly three years. Given the elevated demand levels, this suggests that some firms could be struggling to locate suitable candidates,” Owen said.Business sentiment remains positive: “Businesses’ sentiment remained optimistic over the next 12 months, buoyed by strong project pipelines and continued national development initiatives,” Hijazeen said. MEANWHILE, IN DUBAI-Business conditions in Dubai also improved at a slightly slower pace in March, with the Dubai PMI slipping to a five-month low of 53.2 in March, down from 54.3 in February. Firms are reporting the “weakest expansion since September 2021,” the report reads. The drop was “accompanied by a rare contraction in staffing levels despite ongoing growth in new business,” Hijazeen said. While new orders continued to increase, they did so at a considerably slower rate than at the start of the year — prompting firms to curb employment levels for just the second time in nearly three years. Input price inflation slowed to its lowest level in a year, while output prices increased at a faster pace than they did in February.

Non-oil activity maintained its momentum in February, with growth in the sector remaining close to the nine-month high achieved in December due to a “notable rise in new business that fuelled a substantial upturn in output,” according to S&P Global UAE PMI (pdf). The headline figure stood at 55.0 in February, remaining unchanged from January.REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.Growth in new orders saw a slight slowdown: The new orders subindex fell to 57.3 in February, down from 59.0 in January, marking its lowest level since October of last year, according to data seen by Reuters. Around 29% of firms surveyed reported higher activity than in January, and just 5% reporting slowed activitySome firms reported dampened growth driven by “competition from domestic and foreign sources,” prompting business owners to limit price hikes despite an uptick in cost pressures, the first since July 2024, driven by “the passing on of higher material prices by suppliers,” companies said, coupled with higher costs for maintenance and technology. Increased demand also drove up input purchases, though purchasing grew at its slowest pace in three months.Still, the sector is showing signs of resilience: “The UAE PMI for February reflects the continued resilience of the non-oil private sector, supported by a strong demand, business confidence, and government reforms despite global economic and trade uncertainties,” National Bank of Kuwait Senior Economist Ahmed Issa told EnterpriseAM UAE. Employment similarly remained steady throughout the month, with most firms keeping employment unchanged, while job creation remained limited. Meanwhile, the month saw a continued increase in the volume of unfinished business, driven both by administrative delays and the accumulation of new work. “While robust growth in business activity indicates that the pipeline of orders should eventually be addressed, other factors such as weak job creation and administrative delays pose risks to this outlook,” S&P Global Senior Economist David Owen said.Business sentiment over the UAE’s 12-month outlook remains shaky: Firms’ confidence about future activity in the UAE remains limited, as businesses “continue to feel the pressure of intense competition, which has capped price increases,” Owen said. However, businesses remain “eager to secure new work, which contributed to a rapid accumulation of backlogged orders.” MEANWHILE, IN DUBAI-Business conditions in Dubai improved at a slightly slower pace in February, with the Dubai PMI slipping to 54.3, down from 55.3 in January. Growth remained solid due to an increase in new orders, while activity levels strengthened on the back of higher demand and softened price pressures. Input prices increased at their slowest rate in four months, which led to only slight changes in output prices.Expectations for the coming year saw a slight recovery: Output expectations among businesses in the emirate rebounded to a three-month high, but stayed relatively subdued nonetheless — which, in turn, contributed to firms keeping staffing levels unchanged since last month. However, inventory growth was supported by an uptick in input purchasing.The emirate’s tourism, retail, and logistics sectors are to thank: “Dubai’s PMI results highlight the robust growth in key sectors, including tourism, retail sales, and logistics, driven by a sustained consumer and investor positive sentiment. The steady growth in output and domestic demand for both the UAE and Dubai reinforce their positions as key regional business hubs,” Issa told us.

Non-oil business activity capped off the year with its best performance in nine months in December as robust demand drove an increase in new business, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The UAE’s PMI jumped to 55.4, up from 54.2 in November, positioning it firmly above the 50.0 threshold separating growth from contraction.Businesses expanded output due to buoyant market conditions, with businesses securing new clients and increased order volumes. The uptick in new work was driven by “higher demand, projects in progress, discounted prices and favorable weather conditions,” the report said.Another strong year ahead? “The UAE saw its best expansion in non-oil business conditions for nine months in December, with the latest PMI data closing out another year of continuous growth and putting the sector in a strong position for 2025,” Senior Economist at S&P Global Market Intelligence David Owen said. Business sentiment for 2025 was optimistic, though levels of confidence were at their second lowest since early 2023. On the downside, backlogs are piling up: Employment continued to its slow growth rate — marking its slowest in more than two and a half years — due to margin pressures and limitations on staff recruitment. This limited workforce expansion increased the volume of outstanding work and added strain on inventories, with Owen saying “capacity levels remain under considerable stress” and highlighting a “need to boost resources to ensure firms capitalize on demand in the new year.”Both costs and prices fell: Non-oil companies saw a reduction in input price inflation for the fourth time in five months. Despite the cost of raw materials, shipping, foodstuff and technology rising, average price charges fell due to strong competition driving discounting.MEANWHILE, IN DUBAI- Dubai also sees 9M high: The Dubai PMI rose to 55.5 in December — up from 53.9 in November, due to a sharp uptick in output and new orders following increased client demand and busy markets, with rates of growth trumping overall UAE levels.Employment rose slightly due to the new business growth, while output charges rose and inventories of inputs saw a decline.Businesses are less confident about the year ahead, with confidence dropping to its lowest level since May 2021 and only 6% predicting output growth.ELSEWHERE IN THE REGION-Saudi Arabia’s business activity rose at a slower pace, with the headline PMI coming in at 58.4 (pdf), down from 59.0 in November, despite a record pick-up in sales and new orders, while higher material prices drove up input costs;Egypt’s non-oil private sector activity dropped to 48.1 from 49.2 last month on the back of subdued client demand due to rising price pressures, a slump in demand and softened market conditions increasing costs for businesses.

Non-oil business activity slightly expanded again in November on the back of robust demand conditions and competitive pricing, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The UAE’s PMI rose marginally to 54.2 from 54.1 in October, yet still remaining above the 50.0 threshold separating growth from contraction. Business output and activity levels rose due to the sharpest increase in new order volumes since August. This rise in demand occurred due to businesses acquiring new customers through marketing initiatives and price reductions.Though employment is still on a growth trajectory, elevated capacity pressures caused its growth to “slip to a 31-month low” and input purchases to increase at the “slowest pace since July 2023,” according to S&P Senior Economist David Owen. Costs are climbing at a slightly faster pace than the long-run trend, which was mainly attributed to increases in material, technology, fuel, machinery, and maintenance prices. On the other hand, firms chose to offer price discounts to remain competitive which led them to marginally lower their fees.Backlogs are still piling up despite logistical improvements: Several businesses didn’t accurately anticipate their future activity growth, so the increase in orders caused delays in the completion schedule, causing a rise in backlogs. However, supplier delivery times improved, leading to a minor increase in overall inventories, with new purchases being consumed by present output requirements.Business sentiment leans toward uncertainty as confidence levels in future activity reached its “second lowest” since early 2023, Owen said. Meanwhile, experts are arguing that markets are becoming increasingly crowded, subduing pricing power. MEANWHILE, IN DUBAI- Dubai’s PMI rose on a sharper incline: The emirate’s PMI increased to 53.9 in November, up from 53.2 in October due to the fastest increase in new order inflows since August and the highest across the country. Business activity boomed as lower prices drove a rise in sales levels.Output expectations declined to a 23-month low leading to a drop in employment levels for the first time since April 2022. This development led to a reduction in margins due to rising purchase prices. Meanwhile, inventories were reduced for the first time since July. ELSEWHERE IN THE REGION- Saudi Arabia’s business activity expanded at its greatest pace since July 2023 to 59.0 (pdf), up from 56.9 in October, on the back of upturns in new orders, purchasing activity, and staff recruitment;Egypt’s non-oil private sector activity slightly improved to 49.2 (pdf) in November from 49.0 in October, despite a decline in output levels due to weaker order inflows.

Non-oil business activity saw a slight acceleration in growth during October, driven by an overall increase in business activity as companies pushed to meet rising demand and contain backlogs, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The UAE’s headline PMI rose to 54.1 from 53.8 in September, still above the 50.0 threshold separating growth from contraction, but below the readings of 1H 2024.Despite increased new work intakes in October, demand momentum declined to its weakest level in 20 months, as some firms reported a drop in sales due to elevated market competition. Meanwhile, business activity grew at its highest clip since April, with companies raising output to meet sales volumes and maintaining strong client numbers. On the downside, the growth in employment came at its mildest rate in 2.5 years on the back of softened new business growth. This deceleration signals that “the non-oil economy is losing strength after a robust growth period in late 2023/early 2024,” according to S&P Senior Economist David Owen.On the bright side, competition is catching up with prices: Input cost inflation declined due to a slowdown in purchase prices and salaries. This development led to a reduction in average selling prices for the first time since April as firms looked to stay competitive amid rising competition.Backlogs are easing, but still indicate a healthy pipeline of work: The rise in backlogs is easing up due to improvement in supplier delivery times and rapid consumption of delivered inputs to keep up with orders, keeping stock levels at similar margins compared to the previous month. Heavy work backlogs and ongoing contracts are positive signs that the non-oil economy will continue to grow in the upcoming months even if sales decrease, Owen said.Business sentiment shifted to a slightly more optimistic outlook, yet remaining at one of its lowest levels this year. The positive expectations are driven by firms becoming increasingly confident in demand growth, due mostly to strong sales pipelines. However, uncertainty and high competition are still causing caution.MEANWHILE, IN DUBAI-Dubai’s PMI saw slower growth in comparison to the UAE, falling to a three-month low of 53.2 in October, down from 54.1 in September. New business intakes increased by the lowest rate since early 2022 on the back of strong competition and challenging market conditions, leading to a slowdown in employment growth. Meanwhile, output growth rose to a five-month high in the emirate.Average selling prices dropped for the first time since April due to strong competition, despite an increase in input costs.ELSEWHERE IN THE REGION-Saudi Arabia’s business activity rose to a six-month high of 56.9 (pdf) in October, up from 56.3 in September, on the back of a sharp increase in sales and expansions in business and purchasing activity.Egypt’s non-oil private sector activity marginally improved to 49 (pdf) in October from 48.8 in September — still below the threshold separating growth from contraction — as strong cost pressures continue to prop up selling prices.

Non-oil business activity grew at its slowest pace in three years in September on the back of rising costs and capacity constraints, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The country’s headline PMI slipped to 53.8 in September from 54.2 in August, marking its second-lowest reading in three years, yet still remaining above the 50.0 threshold separating growth from contraction.Weaker growth came on the back of slower gains in new orders and business activity, despite strong demand — especially from international markets. Exports continued to grow but the rate of growth was its second-lowest in 18 months on the back of rising competition and “caution towards the business outlook,” the report said. Job creation also fell to its lowest rate since December 2022. The non-oil sector is seeing a “loss of momentum [...] with growth having slowed considerably since the start of the year,” S&P Senior Economist David Owen said. Backlogs are continuing to pile up: Backlogs of work rose to a four-month high in September, continuing a trend that started in February and was exacerbated by the April floods. The rising backlogs led to an uptick in purchases, with firms using up their new purchases to meet existing commitments. Customs duties delaying input deliveries were also cited as a major contributor to slower supplier performance.Price pressures remained high: Input price inflation persisted, driven by higher shipping, fuel, and technology expenses. As a result, businesses raised their selling prices for the fifth consecutive month, and at the fastest rate since early 2018, as they continued to pass increased costs onto customers.Business sentiment shifted to a more cautious outlook for the coming year, with expectations now “at their lowest since early 2023,” said Owen.On the bright side, lighter cost pressures in September compared to the last few months “could be a sign that the inflationary trend will lessen,” offering some relief to firms, Owen added. MEANWHILE, IN DUBAI-Dubai’s PMI diverged from the UAE’s: Business activity levels in Dubai grew at their fastest level in four months, pushing businesses to increase staffing and inventories despite a slower increase in business volumes. Input costs rose at their softest pace in five months, but companies still raised their prices at the fastest pace since early 2018. ELSEWHERE IN THE REGION-Saudi Arabia’s business activity growth accelerated to a four-month high of 56.3 (pdf) in September, up from 54.8 in August, as faster growth in output and new orders outpaced capacity shortfalls and a lull in purchasing activity;Egypt’s non-oil private sector activity is back in contraction territory, dipping to 48.8 (pdf) in September, after finally reaching growth territory for the first time in years in August.

Non-oil business activity in the UAE regained momentum in August after slipping to a near three-year low the month before, according to S&P Global’s purchasing managers’ index (pdf). The index inched up to 54.2 last month, from 53.7 in July, signaling “solid improvement in the health of the non-oil private sector,” although it came in as the second-softest uptick in over a year and a half.Business activity was on the up as non-oil firms logged a surge in new orders midway through 3Q. Foreign clients were the big source of new business, with export orders seeing their sharpest increase since October 2023, pushing overall new business growth to a five-month peak. Growth was also supported by improved domestic conditions, which boosted business and consumer spending alongside ongoing project work.We still have a long way to go: Despite the rebound, business growth was among the weakest it has been in the past three years. Challenges persisted: While companies kicked up their output to meet the uptick in demand, the impact of this year’s flood and supply chain issues strained operations and slowed down firms’ ability to process new orders in August. Work backlogs hit record levels, “although the rate of accumulation was the softest since January,” the report says.Supply chains showed some signs of recovery, with vendor delivery times improving as suppliers were “better able to reset their schedules”; stockpiling of inputs resumed modestly. The hiring rate was the softest in seven months — some cut staff to cope with rising costs, but others added to their teams amid rising demand. Input prices continued to climb: August saw another spike in raw materials, transport, IT equipment, and maintenance costs, while wage costs rose at the fastest pace since May. Still, businesses benefited from cooling purchase price inflation. Businesses raised prices for the fourth month running, though at a slower rate. Looking ahead: “Projections for business activity strengthened in August … with firms largely positive that domestic economic conditions will improve,” S&P Global said, adding that “companies also suggested that strong sales pipelines would shore up output over the coming months.”MEANWHILE- Operating conditions in Dubai’s non-oil sector improved at a faster pace, driven by a quicker increase in new business inflows and as stockpiling picked up after the first drop-off in two years. Still, business growth sat at its lowest level since September 2021.Dubai also saw input costs rise — but at a slower pace — with average selling charges increasing for the fourth month in a row, marking the sharpest rise since April 2021.Egypt is back in expansion territoryEgypt’s business community snapped its losing streak. Non-oil private sector activity there expanded in August for the first time in over three years, S&P Egypt PMI shows. The report pointed to more stable demand conditions thanks to “market recovery amid improved macro-economic factors and rising export business” as an important reason behind activity finally increasing.It’s been a long time coming: The index rose to 50.4 in August, up from 49.7 in July. The country’s non-oil private sector has been in contraction since November 2020, but has been flirting with the 50.0 mark that separates growth from contraction since May thanks to cooling inflation and growing confidence.Saudi Arabia business activity picked up, breaking five-month trendSaudi Arabia’s non-oil private sector activity grew at a faster pace in August, with the headline PMI figure recording a slight increase to 54.8 in August, up from 54.4 in July, reversing a five-month downward trend, Riyad Bank Saudi Arabia’s Purchasing Managers’ Index shows. Despite the month-on-month growth, the index is below the 56.9 long-run average.

Non-oil business activity rose at the slowest pace in almost three years in July, due to rising competition and input prices, and growing backlogs, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The country’s headline reading dipped to 53.7 in July, from 54.6 in June, yet still remained above the 50.0 neutral threshold.The report attributed the ongoing growth to “rising inflows of new work, ongoing projects and improved supply chain conditions.” Demand remained strong with businesses continuing to grow their sales, though at the slowest pace since April, the report said. International demand saw a notable boost, with exports rising at their second-fastest pace in nine months. However, intense competition led to a decline in new order volumes for some firms.The main reason behind the slowing momentum? Business capacity. Backlogs surged in July due to supply and administrative lags, causing inventory volumes to slightly fall for the first time in almost four years, as firms dug into their inputs to avoid project overruns. Businesses also noted that increased competition drove up backlogs, as non-oil firms looked to retain more clients amid rising competition. Despite this, job creation dipped to a six-month low. Price pressures were high: Input price inflation hit a two-year high in July, accelerating for the fourth consecutive month on the back of rising material costs, and higher wages and overheads. Selling prices climbed to a six-year peak for the second month running, though fierce competition tempered cost pass-through. The outlook is still positive: “The PMI suggests that the non-oil sector is expanding solidly and could be strengthened if companies start to get on top of their workloads. Firms are generally optimistic of this, with confidence in the year ahead remaining strong, while hiring also continued in a bid to raise staff capacity,” said S&P Senior Economist David Owen.DUBAI-Dubai’s PMI mirrored the UAE’s: Heightened competition drove the PMI down to 52.9 in July, down from 54.3 in June, its lowest reading in two and a half years. The index indicated a slower, yet solid, improvement in the non-oil private sector, with new orders weakening amid rising competition, and output growth slowing to its weakest level since September 2021, leading to lower hiring levels. Purchasing levels dropped at the second-fastest pace on record in July, due to rising material costs and the need to deplete existing stocks. Input prices surged at their fastest rate in two years, leading to a third consecutive rise in output charges.ELSEWHERE IN THE REGION-Egypt’s non-oil private sector activity dipped slightly to 49.7 (pdf) in July, from 49.9 in June, settling right below the 50.0 mark and reaching its second-highest level in three years;Saudi Arabia’s business activity growth fell (pdf) for a third month straight to 54.4 in July, from 55.0 in June, as output levels, purchasing activity, and new exports rose, despite a lull in new orders and growing competitive pressures.

The UAE's non-oil business expanded at its softest rate since February 2023 on the back of competitive pressures and lower output, continuing a slowing growth trend that began at the start of the year, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The index dipped to 54.6 last month, down from 55.3 in May, still remaining above the 50.0 threshold that separates growth from contraction. Companies saw a “record accumulation” of backlogged orders due to strong demand, the persistent impact of April’s floods, and the ongoing Red Sea shipping crisis. However, the record inventory is “showing signs of easing, a trend that is likely to continue as the country recovers from April's floods and supply chains adapt to the current situation in the Red Sea,” S&P Global Market Intelligence Senior Economist David Owen said.Still, robust demand is driving sustained expansion: “Companies are still enjoying strong customer demand and robust sales pipelines, which are sustaining output expectations and driving purchasing activity,” Owen said. Strong demand meant businesses saw exports rise at their sharpest level since October last year on the back of increased acquisition of new clients.Increased inflationary pressures led to price hikes: Businesses raised their selling prices for the second consecutive month, albeit modestly, as they continued to pass increased costs amid inflationary pressures — the highest seen in two years, according to purchasing managers — on to consumers. Alongside the rise in prices, salaries also saw an uptick. Heightened competition is also driving firms to raise their prices, as businesses are “feeling the pain on their balance sheets and having to protect their margins,” Owen highlighted.Staffing levels grew last month but at the slowest rate since January as companies look to manage higher costs. Businesses are still optimistic: Despite falling slightly from May, business sentiment was still “among the best observed in the past four years,” according to the survey. Expectations for future demand growth prompted businesses to hike input purchasing. DUBAI-Dubai’s PMI also slowed to its lowest level since February 2023 last month, falling to 54.3 in June, down from 54.7 in May. Despite new orders expanding in June, business activity grew at its most sluggish pace in three years, on the back of “high market competition that had limited their ability to take advantage of strong demand conditions.”Inflation pushed input prices to rise at their fastest pace in two years, leading to companies charging higher prices for the second consecutive month. On the other end, supplier performance saw a marked improvement, accompanied by an increase in staffing levels and positive sentiment. ELSEWHERE IN THE REGION- Saudi Arabia’s PMI slumped to 55.0 in June, its lowest level in over two years, according to S&P’s PMI (pdf) ; Qatar’s PMI (pdf) expanded at its fastest pace in almost two years to 55.9 in June, amid improved business conditions.

Non-oil business activity softened to a 16-month low in May, as businesses continued to face the knock-on effects of April’s record flooding, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The index remained flat at 55.3 in May, still well above the 50.0 threshold that separates growth from contraction.April’s storms weighed on business activity, with businesses reporting continued disruptions and backlogs of work staying on a steep upward trajectory — rising at the fastest pace since the survey began in 2009. Disruptions and attacks in the Red Sea and administrative challenges also weighed on activity, the report notes. Despite this, vendors were able to trim their delivery times more quickly than April.Price pressures were high…: Purchasing expenses grew to their highest since last November, as firms raced to meet output requirements against the backdrop of robust sales pipelines. Some firms also reported having to restock items that were damaged during the floods, which led to higher input spending, while rising fuel prices and higher wages — which grew at the fastest pace in six years — also intensified price pressures. …and consumers got the brunt of it: Average prices increased for the first time in seven months as firms passed input costs onto clients, S&P Global said. The uptick was marginal, but was still the fastest in over three years. Post-flood recovery will take some time: “Firms have a lot of work to do to get on top of their workloads, including rebuilding output levels, hiring workers and boosting inventories,” S&P Global Market Intelligence Senior Economist David Owen said. Demand perked up in May after companies faced a slowdown in April, with several firms citing improvements in client spending and tourism, according to the report. Some firms reported slowly recovering sales volumes, with new orders rising at the second-weakest pace since August 2023, while other firms reported operations were still on hold.AND- Staffing levels picked up to a three-month high as businesses took on additional labor in May.The outlook is still positive: “The focus for the next few months looks to be the recovery of the sector from this crisis. Nonetheless, with demand still strong, firms should be in a good position to resume their robust growth once capacity has been restored,” he added.Business confidence towards future output also strengthened due to hopes of more stable economic conditions, higher sales, greater earnings, and heightened marketing activity.DUBAI- Dubai’s PMI still in decline: Dubai’s business activity slumped to a 15-month low, falling to 54.7, down from 55.1 in April — remaining in expansion territory. The index signaled a “strong improvement in business conditions,” as new orders inched up after recording a 13-month low in April, with some firms reporting higher client activity after the April disruptions. Inflationary pressures accelerated in May on the back of an increase in raw materials and petrol prices. Overall input costs surged to a 22-month high, leading to the first increase in output prices during the period. ELSEWHERE IN THE REGION- Egypt’s non-oil private sector activity picked up to its highest level in almost three years in May, rising to 49.6 ;Saudi Arabia’s business activity growth fell to 56.4 in May, marking its second-lowest PMI reading in 22 months;Qatar’s PMI rose to an eight-month high of 53.6 in May up from 52 in April;

Non-oil business activity grew at a slower pace in April due to disruptions from the storm, which impacted business operations and sales, according to S&P Global’s purchasing manager’s index (pdf). The index dipped to 55.3 in April, down from 56.9 in March, remaining well above the 50.0 threshold that separates growth from contraction, although it came in lower than the post-pandemic peak in February. Business growth came in at its slowest pace in 14 months, as new order volumes slowed and consumer demand eased amid business disruptions caused by the flooding, as well as high workloads, which also led to a significant increase in backlogs.Purchasing expenses were high: April saw a spike in purchasing and staff costs driven by increased raw material prices and efforts to offset employees’ higher living expenses. Meanwhile, companies slashed prices to boost sales amid stiff competition, resulting in a marginal decrease in average prices. Companies were cautious about their inventories, with stocks of purchases expanding at its slowest rate since March 2022. Supplier performance also saw minimal improvement, partly due to transportation disruptions caused by the flooding during the month.Staffing levels only grew modestly: While companies saw a continued increase in employment levels on the back of new projects and strong demand — which maintained a two-year stretch of jobs being created — the pace of employment growth was mild due to reported high costs. “Pressure on operating margins remained a challenge, as price discounting continued despite faster rises in purchasing costs and salary payments,” said S&P Global Market Intelligence Economics Director Tim Moore.Some respite: Business sentiment remained strong as companies noted “buoyant market conditions and strong sales pipelines, as well as a swift recovery from weather-related business disruptions.”Dubai’s PMI, meanwhile, reached an eight-month low but still posted growth, with the index slipping to 55.1 in April, down from 58.0 in March. “Companies operating in Dubai recorded a particularly acute loss of sales momentum as adverse weather disruptions hit business and consumer spending,” Moore said.FROM THE REGION- Non-oil business activity maintained a steady growth rate in April, thanks to favorable market conditions including sustained levels of high demand, growth in customer base, new investments, and heightened competition, according to the Riyad Bank Saudi Arabia PMI (pdf) out yesterday. The headline purchasing managers’ index remained unchanged m-o-m at 57.0, remaining firmly above the 50 threshold that separates growth from contraction.

Non-oil business activity continued to expand in March, albeit at a slower pace, as backlogs hit their highest level since June 2018, according to S&P Global’s purchasing manager’s index (pdf). The index dipped to 56.9 in March, down from 57.1 in February, remaining well above the 50.0 threshold that separates growth from contraction.“The overall picture for the UAE non-oil private sector remained rosy at the end of the first quarter. The latest PMI reading of 56.9 in March signaled a robust upturn in business conditions, with order book inflows and activity levels still growing sharply,” said Senior Economist at S&P Global Market Intelligence David Owen.New order volumes rose on the back of higher client spending and marketing campaigns. Consequently, output activity increased and hiring accelerated for the second consecutive month as firms raised staffing levels to cover the influx of new orders. Backlogs accumulated at their fastest pace in 15 years as businesses struggled to complete their order books while grappling with surging client demand, which “placed great pressure on administration teams,” resulting in payment and paperwork delays.Red Sea disruptions are to blame: Businesses’ delayed deliveries were compounded by the Red Sea shipping crisis which, “[eroded] suppliers’ ability to deliver items on time,” Owen explained, adding that “while the surge in backlogs is concerning as an indicator of business health, the pent-up demand should support activity growth for even longer once these issues are resolved.” Still, firms reported the weakest supplier performance in a year. Business sentiment hit a six-month high and rose to its second-highest level in four years driven by the robust demand, high business incomes and marketing plans.FROM THE REGION- Saudi’s non-oil business activity stood at 57.0 in March, down from 57.2 in the previous month, remaining in growth territory on the back of strong demand, according to its PMI (pdf).Egypt’s PMI (pdf) declined at a slower pace in March, rising slightly to 47.6 in March, up from 47.1 in February. This indicates a “softer but still-solid deterioration,” due to persistent currency challenges and pressure stemming from disruption in the Red Sea.

Growth in Dubai’s non-oil sector activity surged to its highest level in February since May 2019, after hitting a five-month low in January, according to S&P Global’s purchasing manager’s index (pdf). The PMI reading rose to 58.5 in February, up from January’s 56.6, signaling an improvement in the operational environment within the emirate’s non-oil economy. With the index firmly above the 50.0 mark that indicates expansion, Dubai's non-oil sector is poised for continued growth and development in the months ahead, according to the report. REMEMBER- It was a good month for the whole country: The UAE’s non-oil economy continued to see “strong upward momentum” as output levels rose at their sharpest rate since mid-2019. The country’s PMI recorded 57.1 in February, up from 56.6 in January, S&P’s PMI (pdf) showed.Healthy business activity marked by increased output: Dubai businesses saw an uptick in activity during the month, with 36% of survey respondents reporting increased output — the fastest surge in 18 months. Elevated demand, strong market conditions, and expanded project portfolios were key contributors to this growth. “The reading signals that the Dubai non-oil sector is one of the fastest growing worldwide according to global PMI data,” Senior Economist at S&P Global Intelligence David Owen said.Surging customer demand kept order books strong,with businesses noting the impact of price cuts and promotions. Output charges dropped significantly, hitting an eight-month low, especially in the wholesale & retail sector.Hiring reached its highest pace since August 2015, as increased workloads prompted companies to expand their workforce. Furthermore, inventory inputs and partially finished items hit a three-month peak, possibly showcasing companies’ anticipation for higher demand in the non-oil sector.Red Sea disruptions only slightly impacted supplier performance in 1Q 2024, leading to a minor reduction in lead times for non-oil companies. Although a slight improvement from January, lead times remained the second-slowest in over a year. Input costs also rose to a three-month high but remained “modest overall.”Businesses are more confident than they were in January, signaling heightened optimism for growth in the non-oil sector over the next 12 months. “Inflationary pressures remained soft which encouraged greater sales promotions, while employment and inventory growth strengthened. All this suggests that the non-oil sector's expansion has further to run during 2024,” according to Owen.

Good morning, friends, and welcome to the official start of Ramadan. We hope that you’ve sufficiently caffeinated, and that the last-minute rush to buy Ramadan goodies over the past couple of days wasn’t affected too badly by this weekend’s storm. The holy month began overnight here in the UAE, the national moon-sighting committee declared yesterday after taking to its telescopes, Wam reports. So, when do we eat? You can break your fast at 6:29pm in Dubai, and 6:33pm in Abu Dhabi. Fajr is at 5:14am in Dubai and 5:18am in Abu Dhabi. You can find prayer times for the month here.We’re starting off Ramadan with an M&A-heavy Monday issue, with three separate M&A transactions leading the news well. But first…PUBLIC SERVICE ANNOUNCEMENTS- #1-The storm has cleared upafter Saturday saw torrential rain and hail hit the country, with conditions in Dubai and Abu Dhabi remaining stable since yesterday. Authorities in Dubai have been working to clear the roads from water and fallen trees since Saturday. Still, private schools, nurseries, and universities in Dubaiwere told to take their classes online today,considering the weather disruptions over the weekend, the Knowledge and Human Development Authority said in a statement. The weather today: We’re in for pleasant weather throughout the week, with today seeinghighs of 28°C and an overnight low of 17°C in Dubai and 18°C in Abu Dhabi, with a chance of fog early this morning. #2- Dubaiand Abu Dhabi announced amended hours for public transport routes during the month of Ramadan. IN ABU DHABI- Mawaqif will operate from 8am until midnight, Monday through Saturday.The parking service is without charge on Sundays.The Darb Toll Gate System’s peak hours have shifted to 8-10am, and 2-4pm from Monday to Saturday. The system is without charge on Sunday.The Abu Dhabi Link public bus will run from 6am to 11pm during the week. The Abu Dhabi Express will adopt the Link’s same schedule during the work week, and run from 6am to 1am during the weekend.IN DUBAI-Dubai Bus will operate from 4:30am to 12:30 am on weekdays, and from 6:00am to 1:00am on weekends. RTA Customer Happiness Centers will operate from 9am to 5pm Monday through Thursday, and until noon on Friday.Marine transport — including the ferry, the water taxi, and al abra — have also shifted their hours. Dubai has also waived parking fees during iftar time — from 6 to 8pm — during the month, according to the announcement. #3- Trucks and buses carrying more than 50 workers will be banned from Abu Dhabi and Al Ain’s roads during peak hours — 8-10 am and 2-4pm — to prevent congestion, state news agency Wam reports. HAPPENING TODAY-#1- Dubai’s PMI figures are set to be released later this morning. You can tap / click here for the survey when it’s out at 8:15am, and read our coverage of it tomorrow. #2- The book building process for car parking space manager Parkin continues today.Retail investors have until tomorrow to subscribe to the IPO, while the subscription period for institutional investors wraps this Wednesday. The final share price will be disclosed on 14 March, after which Parkin’s shares will start trading on 21 March.Refresher: The Dubai Investment Fund is selling a 25% stake in Parkin, with books covered within minutes after the book building process kicked off last week, setting it up to raise up to AED 1.57 bn from the listing. WATCH THIS SPACE- #1- Borouge has its eyes on more growth + acquisitions: Adnoc-Borealis JV Borouge is kicking the tires on more potential areas for growth, even as the company continues to negotiate a potential merger with Borealis, Borouge CEO Hazeem Sultan Al Suwaidi told Bloomberg. The company is “evaluating options” for growth and more acquisitions, which are likely going to support the company’s key Asian markets, including India and China, Al Suwaidi said.The company expects chemical markets to remain under pressure this year, Al Suwaidi said, adding that it will be navigating the year “very cautiously.” #2- Ronaldo and Benzema are coming to town: Abu Dhabi will ring in the Eid Al Fitr holiday byhosting the Saudi Super Cup, after media agency Experience Abu Dhabi submitted the highest bid to take rein on the tournament’s first time outside of the Kingdom,reports Wam. The schedule: The three-match tournament will kick off on Monday, 8 April, at Al Nahyan Stadium, where Al Ittihad and Al Wehda will face off at 9pm. At 11:30pm, Al Hilal will challenge Al Nassr at Mohamed bin Zayed Stadium. A final game between the victors of each match will take place on Thursday, 11 April, at Mohamed bin Zayed Stadium. The tournament will see football giants Cristiano Ronaldo and Karim Benzema representing their teams.#3- The Dubai Government Human Resources Department has launched the “Future Proofing Dubai’s Workforce” project, with the goal of integrating 65k Emiratis into the private sector, the Dubai Media Office reports. The project, spanning a 12-month period, will focus on digitizing labor market forecasts, expediting digitization, and creating tailored capacity building programs for the new members of the workforce. DATA POINTS- #1- Dubai’s endowment assets reached AED 10.3 bn during 2023, marking an 18% y-o-y increase with endowments arriving at a total of 948, according to statements from Dubai’s crown prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum picked up by the Dubai Media Office reports. Real estate assets accounted for the lion’s share of endowments during the year, making up more than 90% of total assets.#2- The Sheikh Zayed Housing Program approved 460 housing aids for Ramadan, totalling AED 350 mn including grants, loans, and government housing, Wam reports. THE BIG STORY ABROAD- It’s a quiet Monday morning in the global business press — and quieter still across the Arab world with the start of Ramadan. No single story has gripped the imagination of the business press. Dueling “red lines”: Joe Biden says that Israeli forces invading Rafah would be a “red line,” prompting Benjamin Netanyahu to reply that his red line is preventing another Hamas attack. Biden told MSNBC on Saturday that he would not accept “30k more Palestinians dead.”Palestinians in Rafah are starting the Holy Month on the verge of starvation. We have no words. THE WEEK AHEAD:OPEC will publish its monthly report tomorrow, while the International Energy Agencywill release its oil market report for the month on Thursday. Joe Biden will present his 2025 budget proposal to Congress later today.Russian voters go to the polls Friday through Sunday, with Vladimir Putin expected to be elected to a fifth term as president. ALSO- The 2024 Oscars just wrapped up, with the red carpet being rolled up as we hit dispatch. Among the highlights: Oppenheimer sweep: Cillian Murphy won best actor | Christopher Nolan won best director | Robert Downey Jr. won best supporting actor | It also won the most prestigious award of the night, best picture.Best actress went to Emma Stone for her role in Poor Things. Best original song went to Billie Eilish’s What Was I Made For on the Barbie soundtrack. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here MARKET WATCH-Gold prices in Dubai's Gold Souk have hit a record high of nearly USD 2.2k per ounce,leading to a reported 50% decline in sales at three gold brick shops, Bloomberg writes, citing several local sellers. The surge in gold prices for eight consecutive trading sessions is attributed to speculation over the Federal Reserve’s interest rate policy, the geopolitical tensions in the region, as well as increased central bank buying of gold.More tourists are heading to the souk as opposed to residents, as the latter demographic waits on prices to go down, one gold salesman said. CIRCLE YOUR CALENDAR-The Hamdan bin Mohammed bin Rashid Al Maktoum International Photography Award has unveiled new categories — 'Sports Photography' and 'Short Videos' — open for submissions from 10 March to 30 June 2024, according to the Dubai Media Office. You can submit applications here.TheEcoWaste Exhibition and Forum is set to take place between 16 to 18April at the Abu Dhabi National Exhibition Centre as one of the six specialized verticals within the program of the World Future Energy Summit, according to a press release. The event is organized by RX Middle East in partnership with Tadweer Group to showcase the latest technologies in the field of waste management.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Activity in the non-oil sector expanded at its fastest pace in five years in February on the back of growth in market demand and client activity, fueled by an improvement in business conditions, according to S&P Global’s purchasing manager’s index (pdf). The PMI gauge climbed to 57.1 in February, up from 56.6 in the previous month, indicating “a sharp upturn in overall operating conditions,” S&P Global said. The index remains firmly above the 50.0 threshold that separates growth from contraction. February’s reading signals “strong upwards momentum in the non-oil economy at the start of 2024,” said S&P Global Market Intelligence Senior Economist David Owen.But new orders are slowing:New order growth expanded at its slowest rate in six months, “suggesting output growth could also begin to slow,” Owen said. This was attributed to the increase of competitive pressure. Red Sea disruptions also fed into transport delays, with vendor performance improving only marginally as volumes of backlogged work rose at its sharpest rate in almost four years. “Overall supply chain performance improved at the weakest rate since last July, but nonetheless still improved, suggesting that the impact on vendors is so far limited,” according to Owen. Hiring was at itshighest level since last May as firms look to deliver on the increasing new orders and to offset backlog growth, S&P Global said. Optimism rose to a four-month high, though “concerns of a crowded market remain and appeared to dampen sales growth further,” Owen added.FROM THE REGION- Saudi’s non-oil sector regained momentum: Saudi Arabia’s PMI (pdf) expanded to 57.2 in February, up from 55.4 in the previous month, on the back of a strong services and construction sector and new export orders. The growth marked a recovery from January’s two-year low slump. Egypt’s business activity health “deteriorated”: Egypt’s PMI (pdf) fell to 47.1 in February down from 48.1 in January, logging an 11-month low as inflation pressures and Suez Canal disruptions dampened demand and caused supply-side challenges.

Good morning, wonderful people. We hope the workweek got off to a great start for you yesterday. It’s day two of the EFG Hermes One on One Conference, the largest gathering of its kind devoted to emerging and frontier equities.Some 670 investors from 250 global institutions are meeting face-to-face with senior execs from more than 215 companies in industries through Thursday. Presenting companies are from industries ranging from food and fintech to banking and petrochemicals. Companies from 29 countries will be attending.Investors and corporates participated in EFG Hermes’ unique live poll at the closing of yesterday’s opening session, which also included an interview with our friend Mahmoud Mohieldin, the World Bank’s senior vice president for the 2030 Development Agenda, United Nations relations, and partnerships as well as a panel on what artificial intelligence means to emerging markets and the finance industry. We have the rundown on the poll in this morning’s news well and will have more coverage from the gathering in the days ahead. ** If you’re in Dubai and want to have coffee or pitch us on an interview, hit us up on 1x1@enterprisemea.com.PUBLIC SERVICE ANNOUNCEMENTS- #1- We’re in for more gloomy weather: The rain will continue this week across all emirates, with a significant chance of thunderstorms, reports the National Center of Meteorology. Temperatures are also expected to drop as low as 9°C in some parts of the country. #2- It’s official — we’re getting shorter work days in Ramadan: Both the private and public sector will have their usual working days shortened by two hours, according to the Federal Authority for Government Human Resources and the Human Resources and Emiratisation ministry. We’re looking at a 9am-2:30pm workday from Monday to Thursday, and a 9am-12pm schedule on Friday.#3- Your bus ride in Sharjah just got a little more expensive: Sharjah bus fares have increased by up to AED 3 on some routes, Khaleej Times reports. Fare hikes came into effect last Friday, 1 March, after the news of rising fuel prices at the end of February.#4- The Sharjah Municipality will issue permits for non-Muslim communities to prepare and sell food during daylight hours in Ramadan, including displaying food in front of stores before Iftar, Sharjah24 reports. HAPPENING TODAY- #1- The UAE’s PMI figures are out today shortly after we dispatch this morning’s issue.You can find the PMI survey here once it’s out and read our breakdown in tomorrow morning’s issue. The non-oil sector continued to grow in January, albeit at a slower pace as output growth slowed to a five-month low. Dubai’s PMI figures will be out next Monday. #2- The bookbuilding process for car parking space manager Parkin kicks off today.Retail investors will have until next Tuesday, 12 March to subscribe to the IPO, while the subscription period for institutional investors wraps on Wednesday, 12 March. The Dubai Investment Fund will be selling 749.7 mn shares, with trading set to begin on 21 March, according to the recently-established company’s prospectus (pdf). #3- Kuwait’s Emir Sheikh Meshal Al Ahmad Al Jaber Al Sabah will be in town today for his first state visit since taking office in December, Kuwait’s Kuna reports, citing the UAE’s ambassador to Kuwait. #4- The Telecommunications and Digital Government Regulatory Authority Hackathon is making its way to Sharjah for the Sharjah and Ajman leg today at the Higher Colleges of Technology Sharjah, and then wrapping up with the Dubai Hackathon tomorrow and Thursday at the Higher Colleges of Technology in Dubai, Wam reports.#5- The Culture Summit Abu Dhabi wraps up today, Wam reports. The event, themed A Matter of Time, features participants from 90 countries engaging in keynote speeches, creative talks, and cultural performances.#6- The MRO Middle East event concludes tomorrow in Dubai. The two-day event saw key decision makers from airlines, MROs, OEMs, lessors, and suppliers spanning all aspects of the aviation industry’s supply chain.#7- The World Police Summit is underway and runs until this Thursday at the Dubai World Trade Center. The event will welcome over 20k global law enforcement and security industry professionals to explore solutions to mitigate crime.#8- Forbes’ annual 30/50 summit is also underway, running through Friday. Meg Ryan andShania Twain will be among those headlining the event spotlighting the Forbes 30 Under 30 and 50 Over 50 lists, coinciding with International Women’s Day, Forbes previously reported.#9- The Dubai Entertainment Amusement & Leisure Exhibition opened its doors yesterday. The three-day trade show will welcome global exhibitors in entertainment and amusement, before wrapping this Thursday. #10- The Dubai Sugar Conference kicked off yesterday at the InterContinental Dubai Festival City Hotel and will close on Thursday. The conference highlights the growing focus on sustainability in the sugar industry post-COP28. The conference’s discussions will touch on declining sugar prices, health risks of non-sugar sweeteners, and potential in biofuels and biopolymers. Geovane Consul, CEO of BP Bunge Bioenergia, will deliver the keynote address at this year’s conference. WATCH THIS SPACE-#1- Egyptian developer Hassan Allam eyes UAE expansion: Egypt-based construction group Hassan Allam Holding is planning to expand its projects in the Emirates as part of a strategy to double regional operations, the group’s CEO Hassan Allam told Asharq Business. The construction firm currently has contracts worth approximately USD 2.5 bn in the pipeline. Hassan Allam is eyeing markets including Saudi Arabia, Oman, Libya, and Iraq to propel its regional expansion. #2- EFG Hermes expects smaller IPOs to dominate GCC markets in the coming year, with the private sector becoming the main issuer seeking capital, EFG Hermes head of Investment Banking Mostafa Gad tells Reuters. The Increased transactions will likely come primarily from Saudi Arabia and the UAE, with an increasing level of activity noted in Kuwait, while Oman is gaining heightened attention from global banks, according to Gad.#3- The UAE is set to host a special meeting in June to secure increased financialcommitments for climate action ahead of COP29 in Baku, Azerbaijan, Bloomberg reports. The summit aims to raise the existing target of USD 100 bn annually, which will “require vast amounts of private capital as well as government money.”#4- The government of Sharjah is set to clear AED 69.4 mn in debt for 131 citizens convicted in financial cases, under directives of Sharjah ruler Sheikh Sultan bin Muhammad Al Qasimi, Wam reports. The Sharjah Debt Settlement Committee greenlit the latest batch within the emirate’s debt relief program, which saw Sharjah cancel some AED 1.2 bn in debt for 2.3k citizens. #5- Newly approved Nafis budget: Abu Dhabi Vice President Sheikh Mansour bin Zayed Al Nahyan approved an AED 6.4 bn budget for the Nafis Emiratisation program during the 2024 meeting of the Emirati Talent Competitiveness Council (ETCC), Wam reports. The Nafis program, launched in 2021, has a target of integrating 36k Emirati citizens into the private workforce by 2024 as part of the Emiratisation goals for the private sector. The program will also target the employment of 1k citizens in the education sector starting 2024, with aspirations to reach 4k employees by 2027.DATA POINT- #1- Dubai’s hotel occupancy rates came in at 83.1% in January, outperforming regional and international cities, including Medina, Mumbai, and Hong Kong, Mubasher reports, citing data from commercial real estate information provider Co-Star. January occupancy rates are more than three percentage points higher than figures recorded in January 2023, and were a record high for Dubai’s January performance since pre-pandemic levels in 2020. Growth came despite the emirate opening 3k new hotel rooms throughout the year.2023 recap: Average hotel occupancy rates in Dubai were one of the highest globally in 2023, standing at 77.48%, up 2.18% from an occupancy average of 75.3% in 2019, prior to the pandemic.#2- Non-Arab foreign investors poured some AED 3.4 bn into UAE stock markets in the first two months of 2024, with stocks on the DFM receiving AED 2 bn and those on the ADX reeling in AED 1.38 bn, Al Khaleej reports. The DFM is up 6.13% year-to-date, while the ADX is down 3.4% y-t-d.#3- Dubai Multi Commodities Center’s(DMCC) portfolio of Chinese companies grew 25% y-o-y, with 852 Chinese companies registering in the freezone in 2023, according to a statement. The number of active Chinese companies positions DMCC as “home to over 14%” of some 6k Chinese businesses operating in the UAE, the freezone said. #4- Local air traffic climbed 14% y-o-y in February,with a record 2.9k air movements recorded in a single day of the month, Assistant Director-General of the General Civil Aviation Authority’s Air Navigation Services Sector Ahmed Al Jallaf told Wam (watch, runtime: 2:30). Al Jallaf forecasts air traffic will continue to trend upwards in 2024 on the back of national airlines’ airport and fleet expansions. Air traffic increased 19% y-o-y in 2023, with over 134 mn passengers recorded traveling through UAE airports during the year (up 33% y-o-y, and 5% compared to pre-pandemic levels in 2019). #5- The regional commercial airfleet is set to expand 51% to over 2.2k aircraft within a decade,according to a report from consulting firm Oliver Wyman. Meanwhile, the global airfleet is projected to increase by 28% to 36.4k aircraft by 2034. Prior to the covid-19 pandemic, the global fleet was expected to hit 39k by 2023, but “this won’t happen until 2036, with Covid wiping out six years of growth," the report reads. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here THE BIG STORY ABROAD- Apple has been slapped with a USD 2 bn fine by the European Commission for breaching EU antitrust laws by preventing music streaming apps from informing iPhone users about cheaper subscription options paid for outside iPhone apps. The whopping fine for “abusing its dominant position” is designed to deter Apple and other giant companies from taking similar actions in the future. (Reuters | CNBC | Associated Press)While over in the states, Trump’s legal battles are once again making the front pages: The Supreme Court overturned a ruling by Colorado’s top court that prohibited Donald Trump from running for president in the state on the basis of an anti-insurrection clause in the US constitution. Only Congress has the constitutional power to take a candidate off the ballot under the 14 amendment, the Supreme Court unanimously ruled. (Reuters | Bloomberg | Associated Press | CNBC | BBC | Guardian) HAPPENING THIS WEEK-#1- Beyond Global Trade kicks off on Thursday, 7 March, at the Edition Hotel, Dubai. The event focuses on using blockchain technology in conventional trade. #2- Sharjah Airport Authority will present Sharjah Airport's expansion plans at ITB Berlin2024, which kicks off tomorrow and runs until Thursday, Wam reports. The event gathers tourism and travel industry leaders from 165 countries.#3- The Future Women Leaders Forum 2024 will take place on International Women’s Day this Friday, 8 March, at Fairmont Dubai, reports Gulf News. Organized by Gulf News and women’s empowerment organization Being She, the forum brings together women leaders to amplify regional and international initiatives for gender equality.

Non-oil business activity records tapered growth: While the non-oil private sector continued to expand, output growth slowed to a five-month low in January, according to S&P Global’s purchasing managers’ index (pdf). The index inched down to 56.6 from 57.4 in December, still remaining above the 50.0 threshold that separates growth from contraction.“Slight moderation” from 4.5-year high: “Whilst the UAE non-oil economy largely continued where it left off at the end of 2023, the PMI's dip to 56.6 in January pointed to a slight moderation of growth from the sector’s best quarterly performance in four-and-a-half years,” Senior Economist at S&P Global Intelligence David Owen said. Strong domestic demand underpinned growth:Business growth was fueled by improved sales and marketing efforts, ongoing and new projects, increased investments, and government initiatives, with strong domestic demand driving output, according to the report. Business also ramped up input purchases as firms continued to replenish their stocks to keep up with heightened demand, the report said. On the downside, hiring is taking a hit: Firms recruited new staff at the slowest rate in more than a year in January, with Owen noting that “strong demand and business optimism failed to translate into greater hiring.”And supply chain disruptions impacted delivery, backlogs and pricing: Moderate delivery delays, growing backlogs and increased shipping costs ensued as supply chain risks persisted on the back of ongoing Red Sea attacks, according to Owen. Purchasing remained strong due to growing demand, but higher shipping costs led to a quicker increase in purchase prices. Should we be worried about inflation? Companies reported higher material costs and salary adjustments added to their bills, the survey shows. “The impact on inflationary pressures so far has been notable but not severe, as input costs rose at a faster rate than in December but remained slower than in the preceding three months,” S&P Global senior economist David Owen said. However, businesses did not increase product prices for the third consecutive month because of a “build-up of competition” and their targeting of new customers. Business confidence remains high: Optimism for the non-oil sector’s growth over the next 12 months remains high despite the small dip from December, with firms anticipating robust demand and sales to drive output expansion, coupled with expectations for new projects and increased investment.FROM THE REGION-Saudi PMI dips: Saudi Arabia’s PMI (pdf) stood at 55.4 in January, down from 57.5 in the previous month. This is the weakest growth in non-oil activity since January 2022 with higher costs, interest rates, and supply chain risks to blame.Egypt’s PMI contracts for 38th consecutive month: Non-oil business activity in Egypt stood at 48.1 in January, down from the 48.5 recorded in December, as inflationary pressures continued to weigh on demand, according to its PMI (pdf).

Activity in the non-oil private sector expanded to its highest level in over four years in December,propelled by a surge in new orders, according to S&P Global’s purchasing manager’s index (pdf). The index climbed to 57.4 in December, up from 57.0 in November, recording the second-best expansion level since mid-2019.It was a good end to the year: “The UAE non-oil economy closed the year with another impressive expansion, confirming the strongest quarterly upturn since Q2 2019 and putting the sector in a favorable position for 2024,” said David Owen, senior economist at S&P Global Market Intelligence. December’s PMI reading signals “a robust improvement in the health of the non-oil private sector, driven by considerable uplifts in output and new orders,” the report said.New business orders saw a “sharp upturn,” with the sub-index rising to 63.0 in December, up from 60.5 a month earlier, on the back of strong domestic demand. The jump in new orders was boosted by robust domestic market conditions, despite external market demand slowing down. The sub-index for output posted 63.9 in December for the second consecutive month, bolstered by businesses’ “ability to complete work on time, evidenced by only a slight uptick in backlogs.“Purchasing activity remained on an upwards trajectory to meet growing demand, although some businesses downsized their stocks to offset the inflationary pressures, causing inventory growth to slow in December to a three-month low. Price pressures also eased “as purchasing costs rose to the least degree in almost a year,” Owen said.Business confidence remains high: Optimism for the non-oil sector’s growth over the next 12 months remains high, with the outlook being “among the highest seen since prior to the covid-19 pandemic.” Surveyed businesses said that the optimism is “largely based on robust sales pipelines,” spurring an expansion in employment so that the pace of job creation matches the expected upward activity. FROM THE REGION-Saudi PMI maintains growth streak: Saudi Arabia’s PMI (pdf) stood at 57.5 in December, unchanged from November’s reading. The strong performance was driven by increased demand, with new orders surging at a six-month high.Egypt PMI contracts at a softer pace: Non-oil business activity in Egypt continued to decline in December amid currency weakness, according to the PMI (pdf). The PMI inched up to 48.5 in December from 48.4 in November, as new orders decreased at the sharpest rate since May.

Non-oil private sector activity continued to grow in November on the back of a “sharp rise” in new orders, according to S&P Global’s latest Purchasing Managers’ Index (PMI) (pdf) out this morning. The index dipped slightly to 57.0 from its four-year high 57.7 in October, driven by new orders and a surge in companies’ purchasing activity.Keep it in context: The PMI is a gauge, and anything above 50.0 means that business conditions are improving and the (non-oil, private-sector) economy is growing. New orders are booming… Firms purchased inventory at a quickened pace during the month as they “looked to keep robust stock volumes amid strong demand,” according to the PMI. November saw purchasing levels jump to their highest level since July 2019, while inventories saw their “sharpest expansion” in almost six years. Firms were looking “to ensure they were in a good position to take advantage of growth [potential]” as the “strong run of demand growth” continued, said David Owen, senior economist at S&P Global Market Intelligence. …despite inflation: “At the same time, firms saw another solid increase in purchase prices, which despite softening from October, was the second-quickest since mid-2022,” S&P notes. But output charges didn’t change much: Some firms raised their prices, but this was leveled out by other companies opting to continue marking down their prices, resulting “in broadly stable aggregate output prices.”Rising order volumes supported higher output — as well as backlogs: Output accelerated at the fastest pace since June, while backlogs also increased during the month after dipping for the first time in 28 months in October.Looking ahead: Business optimism remains strong among surveyed firms, which signaled they expect activity to continue rising in the months ahead, although overall confidence levels have weakened “mainly due to concerns at some companies that competitive pressures could erode market share.”FROM OUR NEIGHBORHOOD-Egypt’s PMI remained in contraction territory in November, albeit at a softer pace, with the index rising to 48.4 in November, according to the PMI (pdf). November’s reading follows months of deepening contraction, which pushed the index to its sharpest deterioration in five months to 47.9 in October. Saudi activity expansion cools: Growth in the kingdom’s non-oil private sector slowed last month, with the headline PMI falling to 57.5 in November from October’s four-month high of 58.4, according to S&P’s report (pdf). The dip comes on the back of a slowdown in export demand and inflationary pressures, according to S&P.