Saudi GDP tops $1tn for first time as unemployment hits record low
Saudi Arabia's gross domestic product exceeded $1 trillion for the first time in 2022 as its economy grew by 8.7 per cent, while the unemployment rate among citizens also fell sharply, according to data estimates released by the General Authority for Statistics (Gastat).
The kingdom's GDP at constant prices reached 4.2 trillion Saudi riyals ($1.12 trillion) last year, buoyed by non-oil sector growth.
The non-oil sector contributed about 2.3 trillion riyals to the kingdom’s GDP, accounting for 61 per cent of the total, while the hydrocarbon sector added 1.61 trillion riyals, or 39 per cent, Al Rajhi Capital said in a report.:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/thenational/55TNOLAP4FEMFMXG4EUAPXLCBA.png)
Meanwhile, the unemployment rate among Saudi citizens fell to 8 per cent in the fourth quarter of 2022, from 9.9 per cent in the third quarter, according to government data.
CBUAE decides to cancel Abu Dhabi licence of Russia's MTS bank
The Central Bank of the UAE (CBUAE) on Thursday revoked the license of Russia's MTS bank branch in Abu Dhabi.
The apex bank said in a statement that it will wind down MTS bank's Abu Dhabi operations within six months from date from the date of the decision.
MTS Bank, secured a licence in 2022 to operate in the UAE.
This decision comes after considering the available options regarding the new status of the MTS bank, and taking into account the sanctions risks associated with the bank after the designation, the CBUAE statement said.
During the winding down, the branch will be prohibited from opening new accounts and conducting transactions, except for clearing prior obligations. "The bank’s use of Central Bank’s payment systems will be restricted to this purpose only," the statement noted.
The US and Britain added several Russian banks including MTS to their sanctions list in February, while the European Union cut off more banks from the SWIFT global payments system.
Mideast Stocks: UAE shares stumble as caution reigns ahead of U.S. inflation data
Stock markets in the United Arab Emirates fell on Friday as investors awaited key U.S. inflation data due later in the day for clues on future interest rate moves by the U.S. Federal Reserve. A record monthly drop in the euro zone's inflation rate has raised investors' expectations for similar U.S. data later in the day. The euro zone inflation numbers showed consumer prices rising 6.9% in March after an 8.5% increase in February.
Most Gulf Cooperation Council countries (GCC), including the United Arab Emirates, have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing the country to a direct impact from any Fed monetary tightening.
In Dubai, the main share index fell 0.6%, ending a three day rally, with real estate and financial stocks leading the losses. The index logged quarterly gains of 2.1%, but was down 0.9% on monthly basis. The blue-chip developer Emaar Properties dropped 2.1% and Dubai Islamic Bank and Dubai Investments slid 2.4% and 2.1% respectively. Amanat Holding also gained more than 1% after it announced the launch of its new healthcare platform Amanat Healthcare and plans to explore a regional IPO of the new entity in the near term.
Abu Dhabi's index also lost 0.5%, dragged down by a 1.8% slide in First Abu Dhabi Bank, the United Arab Emirates' biggest lender, and a 0.9% decline in Alpha Dhabi Holding. The index headed for its biggest quarterly loss since the first quarter of 2020, of 7.7%.
