UK business group trims growth forecasts on supply chain woes: Economic wrap

UK business group trims growth forecasts on supply chain woes: Economic wrap
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Updated 06 December 2021

UK business group trims growth forecasts on supply chain woes: Economic wrap

UK business group trims growth forecasts on supply chain woes: Economic wrap

RIYADH: The Confederation of British Industry on Monday revised the economic growth forecast for 2022 to  5.1 percent from the earlier estimate of 6.1 percent.

The group also trimmed the forecast for 2021 to 6.9 percent from an earlier 8.2 percent. It cited supply chain disruptions and a need for government support as reasons for the trimming of forecasts.

Household spending will account for 90 percent of growth in 2022 and two-thirds of that growth in the following year. This is attributed to a healthy job market and savings built up during the pandemic. On the other hand, exports will remain weak.

Moreover, it appears that business investment will grow by 8.2 percent next year, exceeding the pre-pandemic level.

Upbeat construction sector in Europe

The eurozone’s construction sector grew notably in November as its Purchasing Managers’ Index went up to 53.3 compared to 51.2 in the previous month, IHS Markit said.

This is the highest expansion in the sector since February 2018 and was attributed to stronger demand in the region. Home building activity continued its upward trend while commercial construction rose for the second month in a row. Civil engineering deteriorated, albeit at a weaker rate compared to before.

Similarly, UK output in the construction sector expanded at the highest rate in four months in November, according to the London-based firm.

Upswings in commercial work, following the opening of the economy, were mainly the reason for the growth in construction. 

The index reached 55.5 in November, the 10th consecutive month in which the indicator recorded above-50 levels. 

House building in the country also grew, yet at a slightly slower pace. 

Japanese economic growth

The Japanese government is contemplating a hike in its 2022 fiscal year growth forecast following its $490 billion stimulus package, according to Japanese broadcaster NHK on Monday.

The government predicts real gross domestic product to grow by about 2.2 percent for the fiscal year beginning in April 2022. 

Japan has stayed behind in recovering from the pandemic compared to other countries. This has forced the government to introduce generous spending plans.

Italy’s retail sales

Estimates of the seasonally adjusted index of retail trade in Italy increased slightly month on month by 0.1 percent in value and 0.2 percent in terms of volume for November, according to the country’s official statistics agency.

The value of sales increased by 1.4 percent in the three months ending in October compared to the previous three-month period while volume went up by 1 percent.


Kuwait’s budget deficit 682 million dinars in 9 months

Kuwait’s budget deficit 682 million dinars in 9 months
Updated 9 sec ago

Kuwait’s budget deficit 682 million dinars in 9 months

Kuwait’s budget deficit 682 million dinars in 9 months

KUWAIT CITY: Kuwait’s oil revenue reached 11.5 billion dinars ($38.10 billion) in the nine months to the end of December, the Ministry of Finance said in a report on Monday.
The Gulf OPEC member recorded a budget deficit of 682.4 million dinars in the first nine months of its financial year, which ends in March 2022, the ministry’s preliminary report said.
($1 = 0.3019 Kuwaiti dinars)


Military-affiliated companies to be listed on the Egyptian bourse next year: PM

Military-affiliated companies to be listed on the Egyptian bourse next year: PM
Updated 17 January 2022

Military-affiliated companies to be listed on the Egyptian bourse next year: PM

Military-affiliated companies to be listed on the Egyptian bourse next year: PM

RIYADH: Some military affiliated companies operating in the economy and civil sectors are being restructured to be listed on Cairo's Stock Exchange next year, Egypt's Prime Minister, Mostafa Madbouly, said.

The companies will be available to all Egyptians, not just the private sector,  he added during his interview on a BBC program, citing President Abdel Fattah El Sisi’s statement. 

Soliman did not disclose the names of other companies affiliated with the Egyptian army that are planned to be listed, until the validity of their legal structures is verified. 

“We have offered more than 25 percent of the wholly state-owned e-finance company on the EGX, and many companies, including companies affiliated with the armed forces, are scheduled to be offered on the stock exchange next year,” Madbouly said.  

He added that the size of the armed forces' institutions represents less than 1 percent of the Egyptian economy.

Ayman Soliman, the CEO of the Sovereign Fund of Egypt had previously revealed the organisation was in the process of completing the legal restructuring of two affiliated companies, namely the Safi food company and the Watania petroleum distribution company, with both set to be listed on the stock exchange.


UAE’s Masdar wants to hit 200 GW with global renewable energy projects: minister

UAE’s Masdar wants to hit 200 GW with global renewable energy projects: minister
Updated 17 January 2022

UAE’s Masdar wants to hit 200 GW with global renewable energy projects: minister

UAE’s Masdar wants to hit 200 GW with global renewable energy projects: minister

RIYADH: UAE-owned renewable energy company Masdar wants to see its global projects produce up to 200 gigawatts of electricity, the country’s Industry Minister Sultan al-Jaber said on Monday in Dubai.

Al-Jaber, who is also the CEO of Abu Dhabi National Oil Company (ADNOC), was speaking at the Abu Dhabi Sustainability Week Summit at the Expo 2020 site in Dubai.

He said  Masdar has invested in wind and solar projects in 40 countries around the world, according to Reuters, adding: “Our ambition is to accelerate this development globally to reach 100 GW and ultimately double that again to 200 GW.”

No timeframe was set out for the growth, but last month the  Abu Dhabi government confirmed plans to increase Masdar's capacity to more than 50 gigawatts by 2030.


Tanmiah Food appoints Ahmed Osilan as managing director

Tanmiah Food appoints Ahmed Osilan as managing director
Updated 17 January 2022

Tanmiah Food appoints Ahmed Osilan as managing director

Tanmiah Food appoints Ahmed Osilan as managing director

RIYADH: Saudi-listed Tanmiah Food Co. will see executive board member Ahmed Sharaf Osilan take over as managing director for the ongoing term, which shall end on April 4, 2022.

The decision was approved by the company’s board of directors today, Jan. 17.  

The newly elected member, Osilan, will replace Muhammad Sajid Saeed.

Osilan holds a bachelor’s degree in industrial management, and has 20 years of experience in the investment field, having held many leadership positions in the past.

The Riyadh-based food company, which employs more than 1,500 people, has grown to become a major supplier of chicken products.

It operates a veterinary services unit and food processing business.

 


General Motors Middle East appoints Sajed Sbeih as new vice president

General Motors Middle East appoints Sajed Sbeih as new vice president
Updated 17 January 2022

General Motors Middle East appoints Sajed Sbeih as new vice president

General Motors Middle East appoints Sajed Sbeih as new vice president

RIYADH: Automotive company General Motors Africa and Middle East, or GM AMEO, has appointed Sajed Sbeih to the role of vice president of strategy, product & operations at GM Europe. 

Sbeih was previously serving as the managing director of commercial operations for GM Middle East & Sub-Saharan Africa, according to the company’s statement.

Currently named as GM AMEO chief financial officer, Albert Nazarian has been named as the managing director of commercial operations for GM Middle East & Sub-Saharan Africa.

Also, Ajai Shankar, former finance director, is appointed as the company’s new chief financial officer.  

This comes in line with the company’s global growth strategy and efforts to support its vision of Zero Crashes, Zero Emissions and Zero Congestion.