Hiring in UAE and Saudi Arabia rises sharply
The pace of hiring in the UAE and Saudi Arabia rose sharply in April after business activity in their non-oil private sector economies maintained strong growth amid the continued push for diversification.
The headline S&P Global UAE purchasing managers’ index remained unchanged at 54 in April, remaining well above the 50-point mark that separates economic expansion from contraction.
Staff numbers across the Arab world’s second-largest economy rose at the sharpest rate in 11 months, after a relatively subdued period of job creation since the final quarter of last year.
Businesses surveyed attributed higher employment to a “growing need to address workloads”, which the data indicated rose to levels seen in early 2024.
UAE fiscal surplus likely to narrow in 2025-2026
The UAE’s fiscal surplus is expected to narrow due to anticipated lower oil prices, according to the National Bank of Kuwait (NBK). However, the country’s overall economy remains positive despite rising external risks, with GDP growth expected to average 4.2 percent due to higher oil production during the 2025-2026 period.
While hydrocarbon revenues will still get a boost from higher oil production levels, the country’s overall fiscal surplus is projected to slip from an estimated 5.5 percent of the GDP in 2024 to 4 percent in the subsequent two years, the bank said.
The downside risks to the outlook, ranging from lower oil prices to trade-tariff-induced deterioration in global trade, predominate in the current climate, potentially dampening investor sentiment.
“Although downside risks to the UAE’s externally-exposed economy have increased, our base case outlook for 2025-26 remains relatively upbeat with GDP growth averaging 4.2 percent in 2025-26 led by higher oil production, while non-oil growth will slow but is underpinned by continued reform and investment initiatives, strong international competitiveness metrics and healthy if narrowing macroeconomic balances,” NBK said in a report.
Bahrain economic report 2024
According to preliminary data released by the Information and eGovernment Authority, Bahrain’s economy grew by 2.6 percent YoY in real terms in 2024.
This growth was supported by a 3.8 percent increase in the non-oil activities, while oil activities experienced a decline of 4.0 percent YoY.
In nominal terms, the GDP rose by 2.0 percent YoY, with non-oil activities growing by 3.3 percent YoY and oil activities decreasing by 5.8 percent YoY.
The report highlighted the key role of non-oil activities in driving economic growth.
The continued expansion and diversification of the economy accounted for the increase in the non-oil sector’s contribution to GDP to 86.0 percent in 2024.
The Information and Communication sector emerged as the fastest-growing sector, recording a remarkable growth rate of 12.3 percent YoY, driven by increased digital engagement.
This was followed by the Professional, Scientific, and Technical Activities sector, which posted a strong YoY growth of 9.5 percent in 2024.
The Accommodation and Food Services sector grew by 5.9 percent, while Transport and Storage saw a growth of 4.9 percent.
Moreover, the Manufacturing sector, which is the second largest contributor, increased by 4.5 percent. Meanwhile, the Financial and Insurance Activities sector, the largest contributor to GDP, achieved a growth rate of 4.4 percent.
The Wholesale and Retail Trade sector recorded a YoY growth of 2.8 percent.
The report also highlighted a 5.7 percent YoY increase in inward Foreign Direct Investment (FDI) stock in 2024 to a total of BHD 17.3 billion.
UAE, Kuwait, and Qatar sustain non-oil growth in April
The non-oil private sectors of the UAE, Kuwait, and Qatar continued their expansion in April, supported by strong demand, improving output, and stable employment conditions, according to the latest Purchasing Managers’ Index surveys released by S&P Global.
In the UAE, the headline PMI held steady at 54 for a second consecutive month, reflecting continued momentum in the country’s non-oil economy. While output growth eased to a seven-month low, firms ramped up hiring at the fastest rate in nearly a year to manage capacity pressures. New orders surged, underpinned by the strongest international demand in five months.
This robust performance aligns with a wider regional trend of economic diversification, as Gulf nations—including Saudi Arabia—work to reduce their long-standing reliance on oil revenues.
Omani fund to invest $300mn in Algeria’s economy
Oman and Algeria have signed an agreement to create a joint venture oilfield services company in the North African country, according to local media.
The agreement was signed on Monday.
Algeria’s state oil operator, Sonatrach, signed the agreement with Abraj Energy Services, a wholly owned subsidiary of Oman’s global integrated energy group OQ, during sultan of Oman Haitham bin Tarik’s first visit to Algeria.
Saudi Arabia’s economic diversification positions: IMF
Saudi Arabia’s economic diversification strategy has positioned the Kingdom to compete directly with advanced economies as foreign direct investment rises, traditional oil dependency diminishes and the women’s workforce more than doubles, according to a senior International Monetary Fund (IMF) official.
In an interview on Riyal Deal, presented by Al Arabiya News’ Tom Burges Watson, Dr. Jihad Azour, director of the IMF’s Middle East and Central Asia Department, highlighted Saudi Arabia’s economic resilience amid global uncertainty, pointing to significant gains in non-oil sectors and improvements in key social indicators.
UAE minister of economy meets with tourism ministers
During a European tour that included Spain and Croatia, H.E. Abdulla Bin Touq Al Marri, UAE Minister of Economy, met with H.E. Tonči Glavina, Minister of Tourism and Sports of Croatia; and H.E. Rosario Sánchez Grau, Spanish Secretary of State for Tourism, with the aim of enhancing cooperation in the sector. As part of the discussions, the ministers exchanged the latest experiences and practices in the field of sustainable tourism development.