Business activities strengthen in UAE, Kuwait and Qatar: S&P Global

Business activities strengthen in UAE, Kuwait and Qatar: S&P Global
S&P Global has compiled PMI reports on countries across the region. Shutterstock
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Updated 05 November 2024
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Business activities strengthen in UAE, Kuwait and Qatar: S&P Global

Business activities strengthen in UAE, Kuwait and Qatar: S&P Global

RIYADH: Non-oil business activity in the UAE continued its momentum in October, with the Emirates’ Purchasing Managers’ Index reaching 54.1, up from 53.8 in the previous month, an economy tracker showed. 

According to the latest PMI report compiled by S&P Global, the rise in the index was driven by a faster increase in business activity, as demand rose and firms maintained efforts to contain backlogs. 

Aligned with the economic diversification efforts of its Arab neighbors, the UAE is also reducing its reliance on crude revenues and is concentrating more on sectors such as tourism.

“The main factor keeping the PMI above its previous reading was an expansion in business activity, which accelerated notably, albeit from September’s three-year low,” said David Owen, senior economist at S&P Global Market Intelligence. 

According to the agency, the pace of business activity levels in October improved at its quickest rate since April, as firms raised output in response to higher sales volumes, healthy work pipelines and robust client numbers. 

However, the growth of new orders softened to its lowest since February 2023, which contributed to both weaker job creation and a renewed drop in selling charges.

“A softening of new business growth in October added to signs that the non-oil economy is losing strength after a robust growth period in late-2023/early-2024. Firms in the survey panel frequently indicated that crowding in the market was eating into sales, and hitting job creation which slipped to a 30-month low,” said Owen. 

He added: “Firms reduced their output prices for the first time in six months in a bid to try and reverse this slowing sales trend. Positively, this came at the same time as input price pressures softened, likewise to a six-month low.” 

The report revealed that the intakes of new work increased in October, but the rate of growth dropped to its weakest level in 20 months. 

According to the survey, business sentiment improved following September’s 18-month low, yet remained at one of its weakest levels in 2024 so far. 

The report added that companies were generally hopeful that activity and demand growth would be resilient in the future, in part supported by strong sales pipelines. Conversely, uncertainty and high competition were both noted as headwinds to growth by non-oil firms in the UAE. 

Dubai PMI slightly edges down

In the same report, S&P Global revealed that non-oil companies in Dubai registered a slower improvement in operating conditions during October with the PMI falling to 53.2, down from 54.1 in September. 

According to the survey, new business intakes in Dubai rose at the softest rate since the beginning of 2022, as a number of firms cited tougher market conditions and increased numbers of competitors. 

S&P Global added that the pace of employment growth also ticked down in October, but output growth accelerated slightly to a five-month high. 

Similar to the overall scenario in the UAE, non-oil firms in Dubai also posted a drop in average selling prices for the first time since April, due to strong competition. 

Kuwait’s non-oil sector regains momentum

In another report, S&P Global revealed that the non-oil sector in Kuwait regained momentum, with the PMI rising to 52.7 in October, up from 50.3 in September to reach its highest level in seven months. 

According to the survey, both output and new orders rose in the 10th month of the year, while companies also ramped up purchasing activity. 

The report added that advertising and competitive pricing were the main factors outlined by survey respondents which drove the growth of new orders. 

“October saw a rejuvenation of the Kuwaiti non-oil private sector, with firms much better able to bring in new business during the month and therefore seeing output growth quicken,” said Andrew Harker, economics director at S&P Global Market Intelligence. 

He added: “The latest figures raise hopes that the recent soft-patch is behind us and that growth will continue over the remainder of the year. Adding to this sense of positivity, business confidence continued to strengthen.”

While companies increased their purchasing activity rapidly, the pace of job creation remained only fractional in October, as most of the firms embraced this tactic to save costs. 

“Less positive was that firms are still often displaying a reluctance to hire additional staff as they attempt to limit costs. A renewed increase in backlogs of work, however, might mean that workforce numbers are raised more quickly in the months ahead,” said Harker. 

Non-energy private sector growth strengthens in Qatar

In a report compiled by S&P Global, Qatar Financial Center said that the country’s PMI rose to 52.8 in October from 51.7 in September, signaling stronger overall growth in business conditions in the non-energy private sector economy. 

According to the survey, demand for goods and services increased at a faster rate last month, leading to growth in total activity and the greatest build-up of outstanding business in over two years. 

“The headline PMI rose to 52.8 in October, taking it above the average for the third quarter (52.0) and signaling renewed momentum in the non-energy sector. New business growth accelerated, driving total activity higher and leading to a faster build-up in outstanding work,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority. 

The report added that companies continued to invest in staff in October to boost capacity. 

Confidence regarding the next 12 months remained strong in October, with sentiment the second highest since early 2023, driven by multiple factors, including market conditions, population growth, and real estate investment, as well as new products and tourism. 

“The employment and staff costs sub-indices remained close to September’s record highs as firms reported hiking salaries to boost capacity and retain skilled and experienced staff. However, higher staff costs have not been passed on to customers as prices charged fell further in October,” added Al-Jaida. 

Egypt’s non-oil business activity declines

In a report focusing on Egypt, S&P Global said that business activities among non-oil private sector firms declined in October, with the country’s PMI standing at 49, slightly higher than 48.8 in September. 

According to the US-based agency, any PMI reading above 50 indicates expansion of business operations, while readings below 50 signify contraction. 

The survey revealed that strong cost pressures led to another increase in overall selling prices in October, which dampened new order volumes.

“The decline in non-oil private sector conditions extended into October, with firms showing that price pressures had continued to restrain the sector from returning to growth territory,” said Owen. 

He added: “Furthermore, this contraction was observed in all sectors covered by the survey, especially in construction where rising material costs appeared to hit total activity.” 

According to S&P Global, business activity dropped for the second month in a row in October, following August’s brief expansion, which was the first seen in three years.

The survey revealed that the downturn was relatively widespread, with the most pronounced cuts in activity and sales seen among construction firms. 

Regarding future outlook, non-oil private sector firms in Egypt projected business activity to rise in the coming 12 months. 

“With the PMI at 49 in October, Egypt’s non-oil economy is not too far from growing again, and a lessening of cost pressures in the latest month provides some hope that economic headwinds could ease,” Owen added. 


Saudi edtech platform AlGooru raises $4m to boost expansion, AI development

Saudi edtech platform AlGooru raises $4m to boost expansion, AI development
Updated 09 December 2024
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Saudi edtech platform AlGooru raises $4m to boost expansion, AI development

Saudi edtech platform AlGooru raises $4m to boost expansion, AI development

RIYADH: Saudi-based educational technology platform AlGooru has successfully raised $4 million in a pre-Series A funding round, combining both debt and equity financing.

The round was led by Constructor Capital, with additional support from Hub71, angel investors, and family offices.

Founded in 2021 by CEO Khalid Abou Kassem and Omer Awad, AlGooru connects students with on-demand private tutors, offering educational services in 20 core subjects, including mathematics, science, and language development.

The platform holds the distinction of being Saudi Arabia’s first licensed private tutoring service, ensuring its compliance with government regulations for secure and accessible learning.

The new funding will support AlGooru’s expansion across Saudi Arabia, with a focus on scaling its offline tutoring services, enhancing AI-driven technologies, and exploring new verticals. Strategic partnerships, expected to be announced in 2025, will further broaden the platform’s offerings.

This latest investment follows a successful $1.8 million seed round in 2022, led by RAZ Group, RZM Investment, 100 Ventures, RAY Investment, and Oqal Angel Investors.

Matthias Winter, managing partner at Constructor Capital, expressed confidence in AlGooru’s mission, stating, “We believe in AlGooru’s vision of making quality education accessible through innovation and technology.”

He added: “We see tremendous potential in the Kingdom and look forward to supporting Khalid and the AlGooru team in achieving their goals.”

With the new funding, AlGooru plans to further enhance its AI and data-driven capabilities to offer personalized learning experiences tailored to the evolving needs of students. The platform also aims to attract top-tier talent in the edtech sector to drive innovation and meet the growing demand for flexible, tech-enabled tutoring solutions.

“The continued support from our investors underscores the positive impact AlGooru is having in transforming the tutoring landscape in Saudi Arabia,” said Kassem.

“This investment positions us to not only redefine the tutoring sector in the Kingdom but also to contribute to the broader goal of enhancing educational accessibility and quality in the region.”

This new capital infusion marks a significant step toward AlGooru’s goal of reshaping education in Saudi Arabia and beyond, aligning with the Kingdom’s Vision 2030 goals for educational transformation and innovation.


Closing Bell: Saudi main index closes in green at 12,097 

Closing Bell: Saudi main index closes in green at 12,097 
Updated 09 December 2024
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Closing Bell: Saudi main index closes in green at 12,097 

Closing Bell: Saudi main index closes in green at 12,097 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 142.16 points, or 1.19 percent, to close at 12,097.40.   

The total trading turnover of the benchmark index was SR6.81 billion ($1.81 billion), as 126 of the listed stocks advanced, while 96 retreated.    

The MSCI Tadawul Index decreased by 19.11 points, or 1.28 percent, to close at 1,516.60. 

The Kingdom’s parallel market Nomu surged, gaining 287.58 points, or 0.92 percent, to close at 31,502.85. This comes as 45 of the listed stocks advanced, while 34 retreated. 

The best-performing stock of the day was the Mediterranean and Gulf Insurance and Reinsurance Co., with its share price surging by 5.28 percent to SR22.32. 

Other top performers included Emaar The Economic City, which saw its share price rise by 5 percent to SR8.40, and Astra Industrial Group, which saw a 4.21 percent increase to SR183.  

Al Rajhi Bank and Al-Rajhi Co. for Cooperative Insurance also saw positive change with their share prices surging by 4.09 percent and 3.66 percent to SR94.20 and SR181.40, respectively. 

Etihad Atheeb Telecommunication Co. saw the steepest decline of the day, with its share price easing 3.38 percent to close at SR114.20.  

Middle East Healthcare Co. and Almunajem Foods Co. recorded declines, with their shares slipping 3.01 percent and 2.86 percent to SR74 and SR95.20, respectively. 

Fawaz Abdulaziz Alhokair Co. and Tamkeen Human Resource Co. also faced losses in today’s session, with their share prices dipping 2.57 percent and 2.24 percent to SR12.12 and SR69.70, respectively. 

The Saudi Exchange announced the listing and trading of Banan Real Estate Co. on the main market starting Monday. 

Banan’s opening price on TASI was SR8.25, matching its last closing price on Nomu. By the end of the session, the company’s shares edged down 0.61 percent to close at SR8.20. 

This transition raises the number of companies listed on TASI to 227, excluding 19 real estate investment trusts, while reducing the number of firms on Nomu to 104, excluding Alwaha REIT Fund. 


Trump Tower to rise in Jeddah, boosting Saudi Arabia’s luxury real estate market

Trump Tower to rise in Jeddah, boosting Saudi Arabia’s luxury real estate market
Updated 09 December 2024
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Trump Tower to rise in Jeddah, boosting Saudi Arabia’s luxury real estate market

Trump Tower to rise in Jeddah, boosting Saudi Arabia’s luxury real estate market
  • Agreement builds on the success of the Trump International Oman project within the AIDA development
  • New project marks Dar Global’s debut in the Saudi coastal city

JEDDAH: Trump Tower is set to be built in Jeddah, further enhancing Saudi Arabia’s luxury real estate offerings and providing more modern living options in the Kingdom.

Dar Global, an international real estate developer, and The Trump Organization, known for its upscale global properties, have announced plans for a new project in Saudi Arabia.

The agreement builds on the success of the Trump International Oman project within the AIDA development, one of the world’s largest and most acclaimed premium mixed-use real estate ventures, according to a statement from Dar Global.

Ziad El-Chaar, the CEO of Dar Global, expressed excitement about deepening their partnership with the Trump Organization and expanding their portfolio by delivering properties that will redefine the Kingdom’s rapidly growing real estate market.

 

“The new agreement in Saudi Arabia will leverage the strengths of both organizations to attract more international investors and vacationers,” the CEO said.

He added that this collaboration highlights his company’s commitment to expanding its presence while setting new standards for luxury living in the region.

The property developer said that the Jeddah project is aimed at both the luxury Saudi market and international investors, marking a key step in its growth strategy to seize opportunities in the Kingdom’s prime cities.

As the international arm of the Saudi mega-developer Dar Al-Arkan, the new project marks Dar Global’s debut in the Saudi coastal city and will further strengthen its real estate offerings in the country.

Listed on the London Stock Exchange, Dar Global currently has $5.9 billion worth of projects under development in six countries, including the UAE, Oman, Qatar, the UK, Spain, and Bosnia.

Eric Trump, executive vice president of the Trump Organization, said: “We are thrilled to expand our footprint in the Middle East and bring the Trump standard of luxury to the region through our longstanding relationship with Dar Global.”

He added that this collaboration embodied their shared vision of creating developments that incorporate luxury, quality, and sophistication.

“Together with Dar Global, we are setting new benchmarks for excellence, aiming to meet the demand for iconic properties in key markets,” he said.

In July, the Trump Organization announced a deal to partner with the Saudi developer to build a high-rise tower in the UAE business hub of Dubai, its latest project in the Gulf.
 
Trump Tower Dubai will target “the Dubai luxury market,” real estate developer Dar Global said in a press release at that time, adding that the location and design would be unveiled by the end of the year.
 
The development will include a Trump hotel and branded residential units, said Dar Global.


Saudi startup ecosystem poised to drive sustainable growth, says UNDP expert

Saudi startup ecosystem poised to drive sustainable growth, says UNDP expert
Updated 09 December 2024
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Saudi startup ecosystem poised to drive sustainable growth, says UNDP expert

Saudi startup ecosystem poised to drive sustainable growth, says UNDP expert
  • Wamda report revealed that funding for Saudi startups surged to $94 million in November, an 88% increase from October
  • Startups play a critical role in addressing and reversing the effects of land degradation, says UN official

RIYADH: Saudi Arabia is showing the world how economic growth can be achieved without compromising sustainability, thanks to its Vision 2030 program and an emerging startup ecosystem, a UN official said.  

Speaking at COP16 in Riyadh, Vito Intini, regional chief economist at the UN Development Programme, said that startups in the Kingdom are evolving faster and are expected to contribute a lot to the country’s economic development in the future.  

A recent Wamda report revealed that funding for Saudi startups surged to $94 million in November, an 88 percent increase from October. 

“Saudi Vision 2030 demonstrates how sustainability and economic growth can go hand in hand,” Intini said. “The implementation of Saudi Vision 2030 is hopefully increasing a strong emphasis on supporting startups as drivers of innovation in the broader economic and social transformation.” 

Intini commended Saudi Arabia for building a robust entrepreneurial landscape that supports the growth of startups.

“By fostering an entrepreneurial ecosystem and investing in green innovation, the Kingdom can accelerate its sustainability agenda, including promoting the transition to clean energy, more efficient water use, and more sustainable land use,” he added. 

The official also emphasized the role of startups in the broader Middle East and North Africa region, particularly in tackling environmental challenges like land degradation. 

“According to studies that have tried to quantify the cost of land degradation, North Africa has greater losses to its ecosystem and income than other regions. On average, land degradation is estimated to cost about one percent of gross domestic product,” Intini said.  

Through innovative solutions and advanced technologies, he said, startups play a critical role in addressing and reversing the effects of land degradation. 

In the same panel discussion, Himanshu Mishra, associate professor at King Abdullah University of Science and Technology, highlighted Saudi Arabia’s proactive steps to secure a green future.  

“In Saudi Arabia, there is a perfect storm of opportunity in terms of getting rid of organic wastes, doing soil amendment, massive urban greening, and massive rehabilitation. There is a tremendous nationwide alignment on these goals,” Mishra added. 


Saudi ports see 4.29% rise in cargo handled in November

Saudi ports see 4.29% rise in cargo handled in November
Updated 09 December 2024
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Saudi ports see 4.29% rise in cargo handled in November

Saudi ports see 4.29% rise in cargo handled in November
  • Kingdom's ports processed 24.73 million tonnes of cargo last month, up from 23.74 million tonnes in November 2023
  • Navigational traffic saw a 6.96% drop, with 949 vessels calling at Saudi ports in November 2024, down from 1,020 ships in November 2023

RIYADH: Saudi ports reported a 4.29 percent year-on-year increase in the volume of tonnes handled in November, according to official data.

The Saudi Ports Authority, also known as Mawani, revealed that the Kingdom's ports processed 24.73 million tonnes of cargo last month, up from 23.74 million tonnes in November 2023.

The data also showed significant growth in container traffic, with the number of exported containers surging by 23 percent to 261,030 containers. The number of imported containers also rose by 15.62 percent, reaching 259,355 containers during the same period.

This growth contributes to Saudi Arabia’s rising profile as a global logistics hub, with the Kingdom now ranked 15th in the world for container handling in 2024, according to Lloyd’s List, a UK-based maritime journal.

However, overall container throughput showed a slight decline, with the total number of handled containers dropping by 9.14 percent to 670,185 containers. Additionally, transshipment volumes fell sharply by 49.43 percent year on year, with just 138,660 containers transshipped in November.

In terms of cargo types, general cargo totaled 1.13 million tonnes, while solid bulk cargo amounted to 3.59 million tonnes. Liquid bulk cargo saw the highest volume at 13.05 million tonnes.

The Kingdom’s ports also received 716,541 heads of cattle in November, marking a 4.98 percent decline compared to the same period last year.

Meanwhile, navigational traffic saw a 6.96 percent drop, with 949 vessels calling at Saudi ports in November 2024, down from 1,020 ships in November 2023. The number of passengers arriving by sea also fell by 15.78 percent, with 66,422 passengers recorded.

On a positive note, the number of cars imported through Saudi ports increased by 11.82 percent, totaling 99,760 cars during the month compared to 89,269 cars in November 2023.