#UAE, #Saudi Business Conditions Lose Momentum as Covid-19 Weighs - Bloomberg

UAE, Saudi Business Conditions Lose Momentum as Covid-19 Weighs - Bloomberg

Business conditions in the United Arab Emirates and Saudi Arabia rose in January at a lower rate as Covid-19 cases increased, hindering demand.

Conditions in Egypt, however, deteriorated for a 14th consecutive month to the lowest reading since April 2021, according to a Purchasing Managers Index compiled by IHS Markit.

The index for the UAE fell to 54.1 in January from 55.6 at the end of last year, but remained above the 50 mark that separates growth from contraction. Firms in the Gulf country’s non-oil sector faced the quickest increase in cost pressures in the past 10 months, limiting purchasing activity and job creation.

Part of the slowdown “was down to the omicron surge as rising cases led to increased uncertainty among consumers and businesses, as well as tapering the rebound in tourism,” said David Owen, economist at IHS Markit. “Firms face additional challenges from stronger inflationary pressures, global supply chain problems and a possible dip in activity once the Expo ends,” he said, referring to the delayed world fair hosted by Dubai, which is part of the UAE.