SMEs drives Saudi Arabia economy
Small and medium-sized enterprises are a driver to reckon with in Saudi Arabia as the nation, along with the targets highlighted in Vision 2030, carries on to diversify its economy which has been reliant on oil for 10s of years. Even when coronavirus unsettled worldwide economies, SMEs in Saudi Arabia stayed committed in their expansion under the visionary management of King Salman as well as Crown Prince Mohammed bin Salman. This year, when the world began regaining from the drop of the epidemic, the backing supplied by the administration to SMEs in Saudi Arabia was active in aiding them regain their momentum.
UAE business activity remained ‘robust’ at end of 2022
Business activity in the UAE’s non-oil private sector economy remained “robust” in December, with the Arab world’s second-largest economy on track to expand at its fastest pace in more than a decade in 2022 despite concerns about a slowing global economy. The seasonally adjusted S&P Global purchasing managers’ index softened to 54.2 December, from 54.4 in November, but remained well above the neutral 50 mark that separates growth from contraction. Despite global economic uncertainty, slowing growth and higher inflation around the world, the latest reading brought the index in line with its long-run series average since August 2009 and signalled “a robust improvement in the health of the non-oil sector”, according to the survey.
UAE’s non-oil private sector growth further eases in Dec
The growth of the non-oil private sector in the UAE further slipped in December, for the second consecutive month, as waning demand prompted an ease in output and new orders, the latest S&P Global report showed. The deceleration in business activity dragged down the country’s Purchasing Managers’ Index to 54.2 in December from 54.4 in November. Even though the PMI fell slightly, the global consultancy firm said it does not mean that business conditions in the UAE are deteriorating. According to the S&P Global Index, readings above the 50-mark show growth, while those below 50 signal contraction. “The UAE PMI fell for the second month in a row to 54.2 in December, almost registering the lowest reading in 2022 (54.1 in January 2022) and providing further signs that growth momentum has moderated from its post-pandemic peak in the third quarter,” said David Owen, an economist at S&P Global Market Intelligence.
UK science & innovation network country snapshot: Bahrain
The Kingdom of Bahrain is a nation comprising more than 30 islands on the Persian Gulf between Saudi Arabia and Qatar. The natural resources of the country are mainly oil and natural gas, as well as offshore fishing. There is limited R&D investment, and always government led. The Bahrain Petroleum Company, Bapco, is required to invest in CSR R&D programmes as part of its operating contracts. The main universities include the University of Bahrain, a public university and the main source of research; Ahlia University, a private university; and the Arabian Gulf University, a semi-private university funded by all six Gulf countries. At present, the research landscape in Bahrain is steadily improving. In 2014 Bahrain published its first national research strategy and there are some niche R&D partnership opportunities arising.
S&P GCC composite index declines 7.2pc for 2022
S&P GCC composite index fell by 7.2 percent for 2022, which was a lower decline compared to other developed markets, according to Kuwait Financial Centre (Markaz) which recently released its Monthly Market Review report for December 2022. Abu Dhabi and Dubai equity indices increased the most, gaining 20.3 percent and 4.4 percent over the year, respectively. Saudi Arabia and Qatar equity indices fell 7.1 percent and 8.1 percent in the same period. Dubai’s Real GDP witnessed a 4.6 percent y/y growth in 9M 2022. The Central Bank of UAE has revised its real GDP estimates for the year 2022 up from 6.5 percent to 7.6 percent. UAE’s foreign trade volume is anticipated to record a 15 percent y/y increase by the end of the year, amounting to $599 billion.
Oman government projects 2023 GDP growth at 5.5pc
Oman’s economy is expected to grow by 5.5 percent in 2023 as compared to estimated 5.0 percent growth in 2022, mainly due to increase in oil and gas production, according to the estimates released by the Ministry of Finance. As per the forecasts prepared by a joint team to monitor economic developments and outlook in Oman, the real GDP is projected to grow by 5.0 percent by the end of 2022, driven by an increase in hydrocarbon activities, the ministry said in its 2023 state budget document. For 2022, the sultanate’s hydrocarbon GDP is expected to grow by 9.5 percent and non-hydrocarbon GDP is forecasted to grow by 2.6 percent. ‘During 2023, the joint team expects the national economy to grow by 5.5 percent as a result of an increase in oil and gas production. The hydrocarbon GDP is projected to grow by 10.1 percent and non-hydrocarbon GDP is expected to grow by 2.9 percent,’ the Ministry of Finance said.
Qatar unlikely to be affected
A third of the world is expected to go into a recession this year amid the ongoing war in Ukraine and a slowdown in major economies, the International Monetary Fund (IMF) warned on Sunday, though economists told Doha News Qatar’s economy will likely continue to expand. Speaking to CBS, the IMF’s Managing Director Kristalina Georgieva offered a bleak view of the new year, warning that it will be “tougher than the year we leave behind.” “We expect one-third of the world economy to be in recession,” Georgieva told CBS’s ‘Face the Nation’.
Explaining this year’s economic forecast, the IMF official said the reason behind the prediction is due to the simultaneous slowdown of the world’s three big economies – the United States, the European Union and China.