April 2018

Gulf Industry Magazine helps you catch up with the numbers behind economic and industrial developments in the region.


Saudi non-oil growth likely to hit 2.7pc

SAUDI ARABIA’S non-oil growth is expected to average 2.7 per cent this year, better than the growth seen in the last two years, according to a Bloomberg economist.

The kingdom›s non-oil growth increased 1 per cent in January, a slowdown from the estimated 2.6 per cent registered at the end of last year, according to Bloomberg Economics monthly series of Saudi GDP.

Ziad Daoud, chief Middle East economist, Bloomberg Economics, said: “Sluggish private consumption, due to cuts to fuel and electricity subsidies, the introduction of VAT and rising inflation, is likely the main culprit behind the slowdown of non-oil activity in January.

“However, this should pick-up due to increased government spending and recently announced royal handouts. We expect non-oil growth to average 2.7 per cent in 2018, better than it’s done in the last two years,” he said.


Dubai trade with S Korea rises

DUBAI’S non-oil external trade with South Korea grew eight percent in 2017 compared to 2016 to reach Dh27.43 billion ($7.47 billion), a Wam news agency report said.

Out of the total non-oil trade, Dh22.1 billion was in imports, Dh4.47 billion in exports and Dh866 million in re-exports, it said.

South Korea is Dubai’s eighth biggest trade partner in imports and ninth in exports.

Ahmed Abdul Salam Kazim, director of strategy and corporate excellence, said: “Trade with South Korea is gaining more and more weight and value especially after signing the AEO mutual recognition agreement with them. This helps unfold horizons of mutual trade and facilitation between us which includes carrying out the clearance process before the arrival of cargo to the port.”

“The visit of the South Korean President Moon Jae-in to the UAE is an indication of the solid relationship between the two states and will explore opportunities between the two countries in the realms of energy, healthcare, science, space and technology. Following the wise directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, we, at Dubai Customs, work hard to enhance relations with Korean diplomatic missions and businesses in support of trade activity,” he added.


UAE free zone exports hit $61bn

THE exports from UAE's free zones amounted to Dh225.5 billion ($61.39 billion) in 2017, a growth of 6.6 percent from the previous year, according to the UAE Central Bank›s annual report.

The free zone exports account for 19.5 percent of the country’s total exports during 2017, and comprised 16 percent of the trade balance, said a Wam report.

UAE free zones now represent a robust catalyst for economic growth following the significant investments put by the country in developing their infrastructure, legislation and logistics services over the past decades, it said.

The past three years saw some discrepancy in the free zone export volume, which reached Dh221.3 billion in 2015, before declining to Dh211.4 billion in 2016 and then rebounding significantly last year in a way that reflects the boom witnessed on the non-oil sector.

There are 37 free zones operating in the UAE that leverage the country’s position as a key regional trade and financial hub.


IoT security spending to reach $1.5bn

THE worldwide spending on IoT security will reach $1.5 billion in 2018, a 28 per cent increase from 2017 spending of $1.2 billion, according to the latest forecast from research and advisory firm Gartner, Inc.

Internet of Things (IoT)-based attacks are already a reality. A recent CEB, now Gartner, survey found that nearly 20 per cent of organisations observed at least one IoT-based attack in the past three years.

Ruggero Contu, research director at Gartner, said: “In IoT initiatives, organisations often don›t have control over the source and nature of the software and hardware being utilised by smart connected devices.”

“We expect to see demand for tools and services aimed at improving discovery and asset management, software and hardware security assessment, and penetration testing. In addition, organisations will look to increase their understanding of the implications of externalising network connectivity,” he said.

“These factors will be the main drivers of spending growth for the forecast period with spending on IoT security expected to reach $3.1 billion in 2021,” he added.


Dubai’s non-oil foreign trade up

DUBAI’S non-oil foreign trade reached Dh1.302 trillion ($354.48 billion) in 2017 compared to Dh1.276 trillion in 2016, cementing Dubai’s position as a global hub for trade despite the challenges faced by the global economy.

Dubai’s re-exports grew 9 percent in 2017 to Dh360 billion, while Dubai’s imports reached Dh798 billion and exports totalled Dh144 billion, said a Wam news agency report.

Dubai’s foreign free zone trade grew 5 percent to Dh434 billion, while direct trade touched Dh829 billion and customs warehouse trade reached Dh39 billion.

Dubai’s competitiveness plays a key role in attracting investments from around the world, which seek to take advantage of Dubai’s position as a regional and international trading hub.


Saudi cable tray market revenues grow

THE Saudi cable tray market revenues are projected to grow at a compound annual growth rate (CAGR) of 12.1 per cent during 2018-24, according to a new report published by 6Wresearch, a global market research and consulting firm.

The report titled ‘Saudi Arabia Cable Tray Market (2018-2024)’ estimates and forecast the overall Saudi Arabia cable tray market by revenue, material, type, regions and applications such as power utilities, construction, industrial and others. It provides an in-depth analysis with 75 figures and 11 tables, covered in more than 135 pages, said a statement.

The report also offer insights on competitive landscape, company profiles, market drivers and restraints.

Saudi Arabia is presently in the midst of a surge in construction as the country›s hospitals, offices, retail spaces, educational institutions along with its transportation infrastructure are witnessing huge growth under the ambitious Saudi Vision 2030 plan.

As a result, the requirement for electrical devices, cabling and wiring are expected to witness significant rise during the forecast period.

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