China is getting comfortable with the Gulf Cooperation council
The People’s Republic of China’s (PRC) expanding political and economic footprint has been welcomed by the Middle East and North Africa (MENA) region—so far.
Beijing’s brokering of the recent Saudi Arabia-Iran agreement was borne out of necessity and opportunity. The countries in the Gulf Cooperation Council (GCC) are of critical importance to China’s energy security needs, while Beijing feels increasingly sure-footed in its regional diplomacy.
Still, as other great powers have learned the hard way, navigating the region’s contentious politics will prove difficult, as Beijing’s regional role is subject to key uncertainties. While China’s “no questions asked” approach to human rights within MENA will find a receptive audience across much of the region, other aspects of its foreign policy will prove less palatable.
China, the world’s largest oil importer, has a structural interest in low hydrocarbon prices, essentially runs an open-air prison camp for Uyghur Muslims, and may now be responsible for mediating between two bitter rivals. It’s unclear if Beijing has the acumen or the will to manage these contradictions.
UAE’s non-oil economy expands at strongest pace in five months
Business activity in the UAE’s non-oil private sector expanded at the strongest pace in five months, as new orders increased and employment in the Arab world’s second-largest economy in March grew at the fastest rate since 2016.
The seasonally adjusted S&P Global Purchasing Managers’ Index climbed to 55.9 in March from 54.3 in February, well above the neutral 50 mark that separates growth from contraction.
The latest reading signalled a “sharp and quicker improvement” in the health of the sector.
The increase in the index was the largest month-on-month uplift since October 2021, with all five sub-components providing a “positive directional influence”, according to the survey.
“The latest PMI reading … reflected concerted efforts by non-oil companies to boost their capacity levels in the face of strengthening demand conditions,” said David Owen, senior economist at S&P Global Market Intelligence.
“The sub-indices for employment and stocks of purchases rose to 80 and 60-month highs respectively, signalling notable uplifts in staffing numbers and inventories in the latest survey period.”
The rise in the employment sub-index signalled a solid boost to the workforce and reflects the recent trend of improving demand conditions as well as new business that led to a “need for greater labour capacity”.
Expo 2020 Dubai to add $42bn to UAE economy and sustain 35,000 jobs a year
Expo 2020 Dubai was a $42bn triumph and will create money and jobs for decades to come says a new report.
Expo 2020 Dubai has been labelled a “triumph” and will add more than $42bn to the UAE economy.
The World Expo event was a huge success, which welcomed more than 24m visits and will sustain 35,000 jobs a year for decades to come.
Expo 2020 Dubai and its legacy are expected to contribute AED154.9bn ($42.2bn) of gross value added (GVA) to the UAE’s economy from 2013 to 2042, the EY report says.
The World Expo, which welcomed 24.1 million visits during its six-month run, is also expected to support approximately 1,039,000 full-time equivalent (FTE) job-years, equal to more than 35,000 FTE jobs per annum in the UAE over the same period.
UAE: inflation is set to drop this year due to softer price increases
The cost of living is set to drop in the UAE in 2023 and 2024 on the back of a slower rise in different segments of the economy as well as the disinflation trend in other countries.
The UAE Central Bank has projected that inflation in the country will decelerate to 3.2 percent due to softer price increases in all categories, especially transport and food and beverages.
“Imported inflation is expected to be modest owing to the disinflation trend worldwide, while rents and wages are also expected to contribute moderately. In 2024, inflation is projected to slow further at 2.8 percent, in line with global trends,” the Central Bank said.
The cost of living started rising as the country began recovering from the pandemic, driven by higher demand for products as the population started to increase with a strong inflow of foreign workers as companies began to hire again to meet demand.
Similarly, following a consistent rise after the pandemic, rental rise in the UAE has slowed down in most areas and stabilised in some areas.
In addition, interest rates hikes by the UAE in line with the US Federal Reserve has also helped rein in inflation in the country.
FIFA world cup helped Qatar’s economy expand 8pc in fourth quarter
The successful hosting of the Fifa World Cup boosted Qatar’s economy to grow by eight percent on an annual basis in the fourth quarter of last year, S&P Global Market Intelligence said in its latest report.
The Arab country’s gross domestic product jumped to 179.99 billion Qatari riyals ($49.44 billion) at constant prices in the fourth quarter of last year, compared with 166.68 billion riyals in the same period in 2021, Qatar’s Planning and Statistics Authority said in its preliminary estimates released on Tuesday.
“[The growth] is in line with our expectations and propped up by strong services sector activity amid the Fifa World Cup hosting,” Jamil Naayem, principal economist at S&P Global Market Intelligence, said on Wednesday.
Robust fourth quarter economic activity lifted Qatar’s real GDP growth to close to 4.8 percent in 2022, “a level unseen since the middle of the last decade”, the report said.
Qatar’s hosting of the $220 billion grand sporting event spurred tourism, with retail and hospitality also benefiting.
The overall attendance at World Cup matches was 3.4 million, the Qatar News Agency reported.