01 October 2019

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


UAE to see 2.4pc economic growth in 2019

REAL economic growth in the UAE exhibited year-on-year (Y-o-Y) growth of 2.2 per cent in the second quarter (Q2) of 2019, lower than in the previous quarter, said the Central Bank of the UAE, adding that national economy is expected to grow 2.4 per cent during the year, driven by faster growth in the non-oil sector.

Non-oil GDP growth is estimated to have grown from 0.3 per cent in Q1 to 1.5 per cent in Q2. However, oil GDP growth is estimated to have moderated from 12.4 per cent in 2019 Q1 to 4 per cent in 2019 Q2, reported Emirates News Agency Wam, citing CBUAE’s Quarterly Review.

The pickup in non-oil activities is also reflected in the rise in the Purchasing Managers’ Index, which reached an average of 58.2 in Q2 2019. Meanwhile, employment in the private sector increased Y-o-Y by 1 per cent in Q2 2019.

Y-o-Y CPI inflation remained negative in the second quarter at -1.6 per cent due to negative inflation for both Tradables (-1per cent) and Non-Tradables (-1.8per cent).

In addition to the fading impact of the VAT, tradable inflation declined due to low international inflation and an appreciating dirham, while non-tradable inflation declined due to declining prices, particularly in housing.

In the second quarter of 2019, customer deposits at banks increased on a yearly basis led by a rise in government deposits. On the other hand, credit continued its growth, underpinned by healthy Financial Soundness Indicators (FSIs) that underline a sound and stable banking system.


Agri products drive UAE-Brazil trade to $2.5bn

TRADE between the UAE and Brazil is some $2.5 billion, almost half of which comprises agricultural products, said Brazil’s Minister of Agriculture, Livestock and Food Supply at a seminar in Dubai, UAE.

Chicken, sugar and beef account for 77 per cent of all Brazilian exports to the Emirates, Tereza Cristina Correa Da Costa Dias was quoted as saying by Emirates news agency Wam. She was on a visit to the UAE to attend the Arab-Brazilian Chamber of Commerce (ABCC) meeting.

Pointing out that there is plenty of room to grow and diversify, she said, “Chestnuts and fruits are some of the products where Brazil has outstanding global competitiveness, but there is still little representation in trade between our countries.”

The minister added: “Considering that the Emirates is a major global investor and that Brazil has been among the main foreign investment destination for years, I understand that there is a huge opportunity for us to work together.”

In March, Brazil and the UAE signed an investment cooperation and facilitation agreement, with the aim of stimulating, simplifying and supporting bilateral investments.


Bahrain-India trade hits new high

BAHRAIN-Indian trade exchanges are on a new high with the kingdom exporting aluminium worth $140.3 million to the Asian giant, reported BNA, citing official data.

India has been ranked as Bahrain’s 7th partner for trade imports and the 6th for exports.

The country’s exports to Bahrain soared by 43% over the past two years (2017-2018) while imports from Bahrain grew by 19 per cent during the same period.

According to 2018 statistics, Bahrain had imported industrial products and machinery worth $79.2 million. The volume of non-oil trade exchanges between the two countries grew by 24.6 per cent between 2016 and 2018 to top $1.1 billion.

According to a report issued by the Indian Industries Association, the country’s non-oil exports to Bahrain included mainly non-organic petrochemicals, precious metals, electrical parts and other products.

Bahrain’s investments grew threefold in less than three years, jumping from $48 million in 2014 to $140 million in 2017. The kingdom’s investments in India are concentrated in several sectors, mainly food, energy, finance and banking, maritime operations, seaports and containers, reported BNA.

According to experts, the Indian investments in Bahrain have surged to over $1.6 billion in 2017, mainly in strategic sectors such as finance and banking, contracting and hospitality, in addition to food, jewellery and machinery.

As per latest statistics, the overall number of Indian companies in the kingdom has exceeded 3,200. India is also among the main exporters of food products, spices and fruit to Bahrain, in addition to mechanical equipment and technological devices, stated the report.


UAE-Saudi non-oil trade tops $113bn in 5 years

NON-oil trade exchange between the UAE and Saudi Arabia has reached Dh417.6 billion ($113.6 billion) over the past five years, said Sultan bin Saeed Al Mansouri, UAE’s Minister of Economy.

Non-oil exchange between the two countries reached Dh107.4 billion in 2018, a surge of 35 per cent over 2017, reflecting the strength of the strategic partnership and the unity of visions between the two brotherly countries in all development fields.

In an interview with the Emirates News Agency, Wam, on the occasion of the UAE’s celebration of the 89th Saudi National Day, the Minister of Economy said that Saudi Arabia is the first Arab trade partner and the third globally for the UAE in 2018.

Regarding the value of UAE investments in the Kingdom and the economic sectors exchanged between the two countries, the Minister of Economy said that the UAE is at the forefront of investing countries in Saudi Arabia with a total value of more than Dh34 billion.


GCC driving $40bn district cooling market

THE global market for district cooling sector is booming, and is estimated to hit $39.9 billion by 2026 from $21.9 billion last year, growing at a CAGR of 7.77 per cent, said a report.

The rising support from the governments in the GCC countries is driving the global district cooling market, according to a published report by Fortune Business Insights, titled, “District Cooling Market: Global Market Analysis, Insights, and Forecast, 2018-2026.”

Some of the leading players in the global district cooling market are: Engie; National Central Cooling Company (Tabreed); Empower (Emirates Central Cooling System Corporation); Emicool; Veolia; Enwave Energy Corporation; Petronas; Shinryo Corporation; Keppel Corporation; Ramboll; Singapore Power; Fortum; Vattenfall; Logstor; Danfoss; Stellar Energy; Marafeq Qatar and SNC Lavalin.

Dubai-based Empower had recently announced the settting up of world’s first unmanned district cooling plant in UAE. The plant construction is 80 per cent complete and once it is fully operational, it will have a total capacity of 50,000 refrigeration tonnes (RT).

The company plans to meet the demand for district cooling services of hotels in the UAE.

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