Tuesday 3 March 2020

Gulf’s Top Two Economies Dealt Setback After Virus Disruption - Bloomberg

Gulf’s Top Two Economies Dealt Setback After Virus Disruption - Bloomberg:

Business conditions in the United Arab Emirates worsened and Saudi Arabia had the weakest increase in its non-oil private sector output since at least 2009 as disruptions caused by the coronavirus rippled through the Gulf’s two biggest economies.

The spillovers into trade, tourism and supply chains resulted in “a sharp loss of momentum since the start of 2020” for Saudi Arabia, according to IHS Markit. Its Purchasing Managers’ Index for the kingdom dropped to 52.5 in February from 54.9 a month earlier, indicating the slowest pace of improvement for almost two years.

The IHS Markit U.A.E. PMI deteriorated for a second month to remain below the threshold of 50 that separates contraction from growth. “The U.A.E.’s non-oil private sector suffered another blow in February,” David Owen, Economist at IHS Markit, said in a report.


Private businesses in Saudi Arabia and the U.A.E. struggled with logistical constraints last month, which resulted in higher costs and longer lead times. IHS Markit said its latest data for Saudi Arabia showed the “sharpest lengthening” of delivery times among suppliers since the survey began over a decade ago.

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