Gulf Industry Magazine helps you catch up with the numbers behind economic and industrial developments in the region.
Dubai non-oil sector sees sharp rise in activity
DUBAI’S non-oil private sector continued to post a marked expansion of total business activity in June, with the rate of growth accelerating further to a new high since the Emirates NBD Dubai Economy Tracker survey began in 2010.
On the other hand, rising output failed to generate higher employment, with staffing broadly unchanged since May. This continued the weak overall trend in the labour market seen over the past year-and-a-half.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to give an overview of operating conditions in the non-oil private sector – was little-changed from May’s 52-month high of 58.5, at 58.4 in June. The elevated level of the headline figure reflected further marked increases in total activity and new business, in contrast to a neutral contribution from employment.
Among the three key sectors monitored, the strongest overall performance was again registered in wholesale & retail (59.9), although growth slowed for the first time in 2019. The headline figure for tourism & recreation also eased since May (58.9), but to a smaller degree. In contrast, construction posted its best overall performance since last November (57.0).
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change. The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.
Abu Dhabi Q1 industrial production index up
ABU DHABI’S Industrial Production Index rose by 16.6 per cent in the first quarter (Q1) of 2019, compared to the same period in 2018, rising from 122.3 per cent to 142.5 per cent during the monitoring period, a media report said.
The index also rose by 42.4 per cent in the first quarter of 2019, compared to the fourth quarter of 2018, reaching 142.5 per cent, reported Emirates news agency Wam, citing figures released by the Statistics Centre-Abu Dhabi (SCAD). The list of activities that contributed to the index’s increase included coke and refined petroleum products activity, which increased 27.7 per cent. The rise in the “manufacture of unclassified machinery and equipment” also contributed to the index’s increase in Q1 2019, compared to the same period in 2018, by 16.3 per cent, as the quantities of production of this activity increased by 95.5 per cent. Other activities that contributed to the rise of the index include the “manufacture of coke and refined petroleum products”, whose production volume rose by 103.8 per cent. Also, unclassified machinery and equipment contributed with 3.0 per cent to the overall increase between the two comparison periods.
Global oilfield chemical market to hit $34bn
THE global oilfield chemical market is expected to reach $33.94 billion by 2025, with a steady compound annual growth rate (CAGR) of 5.1 per cent between 2018 and 2025, according to a recent market analysis by Frost & Sullivan, a research and consulting firm.
The latest analysis, ‘Global Oilfield Chemicals Market, Forecast to 2025’, reveals that the development of innovative, advanced oilfield chemicals that have superior performance characteristics and are eco-friendly have paved the way for increased application use, premium prices, and market growth.
The discovery of new oil and gas fields across different regions along with shale gas and enhanced oil recovery (EOR) expansion activities will further augment growth prospects, stated Frost & Sullivan in its report.
Ganesh Dabholkar, senior analyst, chemicals and materials in infrastructure and mobility, said: “Rapid growth and investment by global and regional oilfield service companies, as a result of exploration and production participants augmenting their business in high-growth economies of China, India, Brazil, Mexico, and Southeast Asia, will fuel an uptick in oilfield service activities and volume demand for oilfield and enhanced oil recovery (EOR) chemicals.”
The market is currently in a growth stage and presents extensive opportunities for oilfield chemical manufacturers. However, to compete effectively, Dabholkar recommends participants engage in high-level research and development to introduce tailor-made, cost-effective, eco-friendly produce formulations that will work in extremely challenging operational environments such as complex rock formations.
Saudi heat pump market set for solid growth
SAUDI ARABIA’S heat pump market is poised for solid growth in the next six years with its revenues projected to grow at a CAGR (compound annual growth rate) of 2.5 per cent by 2025, said a report by 6Wresearch.
Several upcoming government initiatives such as Saudi Arabia National Vision 2030, National Renewable Energy Program and National Transformation Plan 2020 are anticipated to strengthen the residential and commercial sectors in the country, paving the way for the growth of heat pump market over the coming years, according to the report.
The diversification of the economy along with growing hospitality and healthcare sectors would drive the kingdom’s heat pump market, stated 6Wresearch in its new report titled “Saudi Arabia Heat Pump Market (2019-2025).”
The report estimates and forecast the overall Saudi Arabia heat pump market by revenue, pump types, applications, rated capacities and regions. Moreover, immunisation of non-oil sectors would lead to equitable growth in multiple sub-sectors of the economy in the country which would also propel the heat pump market in the country during 2019-25.
Global gold mine production up 7pc in Q1
GLOBAL gold mine production increased in the first quarter of the year, rising by 7 per cent year-on-year, while activity in the global producer hedge book contracted by 25 tonnes on a delta-adjusted basis, a report said.
There had been a positive change in gold sentiment in 2019, particularly so in the second quarter, supported by renewed global economic and political uncertainties, an escalation of a trade dispute between the US and China, falling inflation expectations and, importantly, a shift in the mood among the world’s key central banks towards looser monetary policy, said the GFMS Gold Survey: H1 2019 Review and Outlook published by Refinitiv, a global analytics company.
Indeed, the ECB extended its pledge to keep interest rates at record lows until the middle of 2020 and signalled a possibility of a fresh stimulus and even rate cuts if the economic slowdown and weak inflation persist. Likewise, the U.S. Fed expressed its openness to easing, with growing market expectations that the rate cut will take place at the next Committee meeting at the end of July.