News Archives - ssrdind

July 5, 2024

Egypt’s non-oil sector sees new business growth for first time in three years, says PMI

New business and sales volumes in Egypt’s non-oil sector rose for the first time since August 2021 in June amid improvement in demand, according to the latest S&P Global Egypt PMI survey. Egypt’s manufacturing and services sectors saw new orders start to increase. However, declines in the construction, and wholesale and retail sectors painted a mixed picture of business growth across the non-oil sector.

As policy moves support the relaxation of price pressures and drive demand, Egypt’s economic conditions have started stabilizing in June. Output levels fell at the softest rate in nearly three years, while the volume of input purchases rose for the first time since December 2021. Input cost inflation remained soft despite accelerating to a three-month high, leading to another modest rise in selling charges.

The latest Egypt PMI survey reveals that the country’s non-oil sector PMI rose from 49.6 in May to 49.9 in June.

Domestic, international market conditions improve
Firms in Egypt’s non-oil sector witnessed an increase in sales due to improving conditions in both domestic and international markets. Moreover, they reported a sharp increase in export orders in June, the strongest in 2.5 years.

“With the headline PMI reaching 49.9 and total new order volumes rising for the first time in nearly three years, businesses appear to be heading on the road to recovery,” stated David Owen, senior economist at S&P Global Market Intelligence.

With an increase in new business, sales and exports, Egypt’s non-oil firms reported greater efforts to expand their capacity. Purchases of inputs increased in June for the first time since December 2021. Some companies also boosted their activity, however, declines elsewhere outweighed that growth. Nevertheless, the overall rate of contraction in output slowed for the 4th consecutive month and was the softest in nearly three years.

“If we see further rises in sales and purchases in the second half of this year, firms should have the motivation and need to expand their output,” added Owen.

Employment stable
Employment numbers across Egypt’s non-oil economy were relatively stable in June. Although some firms raised their workforces amid rising sales, many companies reported layoffs and the non-replacement of leavers. As confidence in future business activity declined to its lowest on record, firms remained uncertain about economic prospects following recent volatility in financial conditions.

Inflationary pressures subside
The June PMI survey data confirmed that inflationary pressures on Egypt’s businesses had been greatly suppressed in the second quarter of the year. Although rising material prices drove the fastest uptick in costs in three months, the rate of input price inflation was still much slower than at the start of the year during Egypt’s foreign currency crisis. Non-oil businesses across Egypt raised their output charges modestly, with the speed similarly the quickest for three months but slower than typically seen over the past couple of years.

“While June saw the fastest rise in input prices for three months, firms generally commented that this was due to a high degree of volatility in market prices rather than an accelerating inflation trend,” added Owen.

Source:https://economymiddleeast.com/news/egypts-non-oil-sector-sees-new-business-growth-for-first-time-in-three-years-says-pmi/

July 5, 2024

UAE’s DP World, China’s Zhejiang Seaport partner to strengthen UAE-China trade

UAE’s DP World and China’s Zhejiang Seaport Group have announced a new partnership that aims to strengthen port logistics and shipping routes between Jebel Ali Port in Dubai and Ningbo-Zhoushan Port in China.

This partnership aims to attract shipping companies to establish additional maritime routes between the two ports. Moreover, it seeks to encourage shipping lines to cooperate in the form of slot exchanges and vessel space purchases on the Dubai-Ningbo route, enhancing the level of connectivity and efficiency between the two maritime hubs.

Promoting green and low-carbon ports
DP World and Zhejiang Seaport Group will partner to promote the construction of green and low-carbon ports, establish an information-sharing mechanism, and share experiences in the construction of green terminals. Moreover, their partnership will explore the use of shore power and the refueling of green ships with environmentally friendly fuels such as LNG and green methanol.

“This strategic collaboration aligns with our vision of expanding our presence in China and working with like-minded partners to strengthen trade routes and accelerate the green energy transition,” stated Abdulla bin Damithan, CEO and Managing Director of DP World GCC.

Notably, China is the UAE’s largest trading partner and this partnership further supports trade ties between the two countries and the Belt and Road Initiative.

Implementing green practices
The collaboration between DP World and Zhejiang Seaport Group will promote low-carbon facilities in ports, expand the application of new energy, and encourage ships to use clean fuels. Moreover, it will establish a green shipping corridor between Jebel Ali Port and Ningbo-Zhoushan Port, contributing to the green transition of the shipping industry.

“Our partnership with DP World, will further strengthen China’s position as a major player in global trade, creating extensive opportunities for Chinese businesses to access customers across the Middle East, Asia, Europe and Africa. The UAE is an important hub for China’s Belt and Road Initiative,” stated Tao ChengBo, Chairman of Zhejiang Seaport Group and Ningbo-Zhoushan Port Group.

DP World and Zhejiang Seaport Group’s agreement will also explore the possibility of investment in logistic opportunities in Jebel Ali Free Zone and Zhejiang Free Trade Zone. Besides, it will support automobile logistics by leveraging the advantages of Dubai as a regional transit hub and China as a major exporter of automotives to support Ro-Ro trade between Ningbo-Zhoushan Port and Jebel Ali in Dubai.

Source:https://economymiddleeast.com/news/uaes-dp-world-chinas-zhejiang-seaport-partner-to-strengthen-uae-china-trade/

July 5, 2024

World’s five most valuable airline brands

The world’s five most valuable airline brands logged brand value growths of at least 11 percent, according to a report by Brand Finance, the world’s leading brand valuation consultancy.

Delta (brand value up 21 percent to $10.8 billion) retained its top position as the world’s most valuable airline brand for the sixth consecutive year. Here is a list of world’s valuable airlines:

5 most valuable airline brands
Delta Air Lines

Delta’s brand value soared up 21 percent to $10.8 billion. It retained its first place among the most valuable airlines brands in the rankings. Headquartered in Atlanta, Delta operates in significant hubs and key markets in Atlanta. It includes Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

Delta served more than 190 million customers in 2023 and was recognized as North America’s most on-time airline by Cirium. Delta operates more than 650 aircraft. The airline employs over 100,000 staff globally.

American Airlines

With brand value up 21 percent to $10.2 billion, American Airlines secured the second place in the list. American was founded more than 95 years ago. It has a deep-rooted history leading the industry through innovation and firsts, including hiring the first black U.S. commercial airline pilot, hiring the first female U.S. commercial airline pilot, launching the first loyalty program of any major carrier and becoming the first airline to introduce airport lounges.

American airlines, along with its American Eagle regional partners, offers thousands of flights daily to more than 350 destinations in more than 60 countries. The airline has hubs in Charlotte, Chicago, Dallas-Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.

American continues to strive to achieve net zero emissions by 2050 by running a more fuel-efficient operation, with more fuel-efficient aircraft, powered by low-carbon fuel. In 2022, American became the first airline globally to receive validation from the Science Based Targets initiative (SBTi) that its 2035 GHG reduction target complies with the SBTi criteria.

United Airlines

United Airlines’s brand value surged 11 percent to $8.7 billion and it has ranked third in the list. It operates the most comprehensive global route network among North American carriers. It is one of the largest airlines in the world as measured by available seat miles. Its hubs are based in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.

United is adding 800 new planes to its fleet, it said recently.

The airline is also planning to reduce its carbon footprint across its fleet. It is doing this through sustainable aviation fuel (SAF). It is an alternative to normal jet fuel that can help fly a plane with reduced lifecycle emissions.

Emirates

With its brand value increasing 30 percent to $6.6 billion, Emirates defended its title as world’s fourth most valuable airlines brand.

It remains the largest international airline as the industry recovers from the COVID‑19 pandemic, carrying 51.9 million passengers in 2023-24. The airline serves 149 airports in 78 countries from its hub in Dubai. 2023-24 was an outstanding year for the Emirates Group, as it reported its best financial results ever, surpassing last year with a new record profit of AED18.7 billion, and revenue increasing 15 percent to AED137.3 billion. Meanwhile, Emirates hit a new record profit of AED17.2 billion with revenue up 13 percent to AED121.2 billion. Airline capacity rose 20 percent to 57.7 billion ATKMs, recovering to near pre-pandemic levels, with a high seat load factor at 79.9 percent.

Southwest Airlines

Southwest Airlines’s brand value jumped 15 percent to $5.4 billion. It operates one of the world’s most admired and awarded airlines. It offers its one-of-a-kind value and hospitality at 121 airports across 11 countries. Southwest took flight in 1971 to democratize the sky. It did this through friendly, reliable, and low-cost air travel. As of now, it carries more air travelers flying nonstop within the United States than any other airline. The airline is headquartered in Dallas and is famous for an employee-first corporate culture. Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its history.

Southwest has a long history of returning value to its shareholders. Since 2010, Southwest has returned more than $13.5 billion to shareholders through share repurchases and dividends. The airline’s goal is to achieve net-zero carbon emissions by 2050 through fuel and operational efficiency initiatives. Also, through SAF, electrification of ground support equipment, and energy conservation.

Source:https://economymiddleeast.com/news/worlds-five-most-valuable-airline-brands/

July 5, 2024

Dubai to get mega 20 million sq.ft. car market

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has directed the development of the ‘Dubai Car Market’, the largest and most advanced car market in the world.

The agreement for the 20 million square feet market was signed between Dubai Municipality and DP World.

The initiative will solidify Dubai’s position as one of the world’s most prominent and rapidly growing cities in the automotive trade sector.

DP World will construct and manage the market, leveraging its extensive logistical expertise and global network, which includes over 430 business units in 86 countries, to ensure the market’s success.

Doubling sales
“Today, we have mandated DP World to develop the ‘Dubai Car Market’, expanding the current market eightfold to create a 20 million square feet facility that will be the largest and most advanced car market globally. The ‘Dubai Car Market’ will be connected with 77 ports managed by DP World around the globe, enhancing its capacity and doubling its current sales of AED6.8 billion ($1.85 billion),” Sheikh Mohammed said.

A strategic project that contributes to realising Dubai’s future vision, the ‘Dubai Car Market’ will offer integrated services. These include buying, selling, registration, banking and logistics. Moreover, the market will have the capacity to host global events, making it a preferred destination for car enthusiasts and investors.

The project aims to expand the current market area from 2.8 million square feet to 20 million square feet, thus making it eight times its current size.

A global hub for special events
“The new market will become a global hub that offers commercial services, and logistics and financing solutions for this vital sector. It will also be a premier destination for major conferences and specialised events for car enthusiasts. Dubai will continue to develop new development projects as part of its vision to be one of the largest economic and commercial centres in the world,” Sheikh Mohammed said.

Dawood Al Hajri, Director General of Dubai Municipality, said: “Signing the partnership agreement with DP World represents a major step towards realising Dubai’s vision for developing the largest and most advanced car market in the world. We aim to provide the best services that meet the needs of investors and traders. This will enhance Dubai’s position as a premier global investment destination in the automotive sector.”

“We aim to leverage our services and expertise in managing economic zones to establish Dubai as a leading destination in the automotive trade sector, and will continue our commitment to providing the best logistical and technological solutions to support this project,” said Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.

Source:https://economymiddleeast.com/news/dubai-to-get-mega-20-million-sq-ft-car-market/

July 5, 2024

Emerging trends shape future of F&B in hospitality in Dubai

The hospitality industry is experiencing a remarkable transformation, driven by key trends that are capturing the attention of industry leaders and consumers alike. As dining and leisure experiences continue to evolve, several notable developments are shaping the future of the food and beverage sector in hospitality.

Health and sustainability are at the forefront of consumer choices, driving a surge in plant-based and alternative protein products. This shift towards healthier and eco-friendly diets is influencing menu offerings and boosting demand for sustainable packaging and practices across the industry. High-end brands like Basta! and Coya Dubai are leading the charge with innovative plant-based menus and sustainable initiatives.

Beyond the menu
Moreover, the hospitality industry’s commitment to sustainability extends beyond menu offerings to encompass all aspects of operations. Restaurants are increasingly adopting sustainable practices such as sourcing locally grown ingredients, minimizing food waste, and using eco-friendly packaging.

The prestigious Michelin Guide has recognized these efforts by introducing the Green Star, an accolade awarded to restaurants that demonstrate exceptional commitment to sustainability. In Dubai, Boca and LOWE have been honoured with the Green Star for their exemplary sustainability initiatives.

Boca, located in Dubai’s DIFC, has integrated sustainability into every aspect of its operations. The restaurant focuses on sourcing ingredients from local farms and suppliers, ensuring that their food is fresh. Boca also executes rigorous waste management practices, including composting and recycling, to minimize its environmental footprint.

LOWE, on the other hand, champions a zero-waste philosophy. Their creative approach includes using every part of the ingredient, from root to stem, in their dishes. Additionally, any ingredients that can’t be used in another dish go straight to the compost, transforming into rich fertilizer for their LOWE garden.

Unique collaborations
A groundbreaking trend is the collaboration between F&B brands and fashion or retail brands. These partnerships are creating innovative dining experiences that infuse culinary artistry with fashion aesthetics. The result is a holistic and immersive experience, blending design, branding, and storytelling to attract a wider audience and enhance customer engagement.

Atlantis The Royal and Louis Vuitton are prime examples of how luxury brands in Dubai are creating unique dining environments. The luxury hotel collaborated with Louis Vuitton to celebrate their one-year anniversary with a series of three-metre-high statues dotted around the venue. Another notable collaboration is Dior’s unique concept store at Nammos Dubai. This partnership enhances the customer experience by blending Dior’s elegant aesthetic with Nammos’ vibrant dining atmosphere.

Additionally, pop-up stores are becoming increasingly popular in Dubai. A recent collaboration that captivated the internet was Miu Miu’s Ramadan pop-up takeover at Kulture House Dubai, bringing together the epitome of fashion and culture in a unique Ramadan setting. These pop-ups offer a fresh and engaging way for consumers to interact with their favourite brands, further blurring the lines between dining and retail experiences.

Experience counts
Experiential dining remains a cornerstone of the industry. Consumers are increasingly drawn to engaging and narrative-driven dining experiences. This trend has given rise to themed pop-up restaurants, interactive chef-led events, and multi-sensory dining experiences that leave a memorable impact on guests. Restaurants like Dinner by Heston Blumenthal, Krasota and Pierchic exemplify this trend with their immersive and interactive dining concepts. Additionally, venues like Tresind Studio and Torno Subito are offering visually stunning dishes that enhance the immersive dining experience, turning dishes into artful presentations.

Products that offer health benefits beyond basic nutrition are gaining popularity. Functional ingredients like probiotics, adaptogens and collagen are being incorporated into a variety of food and drink products. High-end establishments are embracing this trend by introducing menus that feature these health-enhancing ingredients. For example, Boca in DIFC offers dishes and beverages that incorporate functional ingredients, catering to health-conscious consumers seeking more than just delicious flavours.

Embracing technology
The integration of technology is revolutionising the F&B sector. Innovations such as mobile ordering, delivery apps, AI-driven menu recommendations, and smart kitchen appliances are streamlining operations and enhancing customer interaction. The convenience and efficiency offered by technology are now important for success in today’s competitive market. Zenon and LPM are at the forefront of this trend, leveraging technology to enhance customer service and operational efficiency.

Additionally, Dubai now has its first Robo Café located in Dubai Festival City mall. Here, robotic baristas prepare and serve coffee with precision, offering an innovative and engaging experience for customers.

We are thrilled to witness the dynamic transformations in the food and beverage sector within the hospitality industry. These trends offer exciting opportunities for businesses to stand out, engage with their audience more meaningfully, and contribute to a more sustainable future. More brands should implement these strategies and move forward with the ever-evolving trends while also staying true to their brand offerings. As we look towards the future, it is important for businesses in the F&B industry to stay attuned to these evolving trends and adapt their strategies to ensure success and sustainability in a competitive market.

Source:https://economymiddleeast.com/news/emerging-trends-shape-future-of-fb-in-hospitality-in-dubai/

July 5, 2024July 5, 2024

UAE gold prices rise, global rates eye second consecutive weekly rise

Gold prices rose on Friday and were set for a second consecutive weekly gain as traders awaited U.S. employment data for more insight into the trajectory of the Federal Reserve’s potential interest rate cuts.

In the UAE, gold prices saw an AED0.75 increase with 24-carat gold inching up to AED286.25 per gram, while 22-carat gold rose to AED265. Twenty-one-carat gold was at AED256.50 while 18-carat gold reached AED220.

Globally, spot gold saw a 0.30 percent increase to $2,363.49 per ounce, as of 5:07 GMT. Meanwhile, U.S. gold futures gained 0.27 percent to $2,371.70.

The dollar index declined 0.13 percent to 105, making greenback-priced bullion cheaper for other currency holders.

U.S. economic data boosts bullion
Gold prices recovered this week from weaker U.S. economic data. Data on Wednesday, including weak services and ADP employment reports, signaled a slowdown in the economy. Another report also revealed an increase in initial applications for U.S. unemployment benefits last week.

The market now awaits the U.S. non-farm payrolls report due at 12:30 GMT for additional insight into the U.S. economy’s health. Analysts believe that if the non-farm payrolls data declines, investors will raise their expectations of a September Fed interest rate cut. This could push gold prices above the $2,400 level.

Gold prices have so far held steady above the $2,300 mark, which signals that they will likely rise further in a lower interest rate environment. Traders are currently pricing in a 73 percent chance of an interest rate cut in September, according to CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding gold.

Other precious metals
In line with the rise in gold prices, spot silver gained 0.43 percent to $30.53 while palladium rose 0.32 percent to $1,020.75. Copper rose 0.65 percent to $4.57. However, platinum declined by 0.13 percent to $1,001.10.

Source:https://economymiddleeast.com/news/uae-gold-prices-rise-global-rates-eye-second-consecutive-weekly-rise/

July 5, 2024

Oil prices hold steady, on track for fourth straight week of gains as strong summer demand and supply concerns buoy market

Oil prices were largely unchanged on Friday, but remained on track for a fourth consecutive week of gains, trading near their highest levels since late April. This was driven by expectations of strong summer fuel demand and some supply concerns.

Brent crude futures, which have risen 7 percent over the past four weeks, dipped slightly by 2 cents to $87.41 per barrel as of 01:43 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures, which have climbed 9 percent in the same period, edged up 9 cents to $83.97, as trading was thin due to the U.S. Fourth of July holiday on Thursday.

Strong demand expectations, geopolitical tensions lift prices
The rise in oil prices this week was supported by strong mobility indicators and increasing geopolitical tensions in the Middle East, according to analysts at ANZ Research. Additionally, the U.S. Energy Information Administration (EIA) reported a substantial 12.2 million barrel draw in inventories last week, significantly more than the expected 700,000 barrel draw.

Inventory drawdown, unemployment data provide further support
Further supporting the oil market, U.S. data on Wednesday showed a rise in first-time unemployment claims and an increase in the overall jobless numbers, which analysts said could potentially lead to interest rate cuts by the Federal Reserve, thereby bolstering oil prices.

Supply-side concerns emerge from Russia and OPEC
On the supply side, Reuters reported that Russian oil producers Rosneft and Lukoil will significantly reduce oil exports from the Black Sea port of Novorossiisk in July. Additionally, Saudi Aramco cut the price for its flagship Arab Light crude to be sold to Asia in August, indicating the pressure faced by OPEC producers as non-OPEC supply grows.

Traders were also monitoring the ongoing war in Gaza and the upcoming elections in France and the United Kingdom, according to the analysts.

Source:https://economymiddleeast.com/news/oil-prices-hold-steady-on-track-for-fourth-straight-week-of-gains-as-strong-summer-demand-and-supply-concerns-buoy-market/

July 5, 2024

Surviving the sharing economy trend: Strategic moves for the hospitality industry

The rise of the sharing economy in the hospitality sector is reshaping the travel industry globally, and the Middle East is no exception. The sharing economy, which refers to the peer-to-peer exchange of accommodations and travel experiences through platforms such as Airbnb and Dubizzle, presents both challenges and opportunities for traditional hospitality players. This article explores key trends fueling the growth of the sharing economy, its impact on the hospitality industry, and strategic ways for industry players to adapt and benefit.

Rise of the sharing economy and peer-to-peer platforms in travel
The sharing economy in travel has seen remarkable growth, reaching a market size of $10.7 billion in the GCC alone by 2024. Airbnb, for instance, boasts over 7 million listings worldwide and sees a substantial portion of its bookings from the Middle East. Local alternatives like Dubizzle in the UAE and Gathern in Saudi Arabia are also rapidly gaining traction. They are providing travelers with unique stays and personalized travel experiences that cater to various preferences and budgets.

Impact on consumer behavior and preferences
One of the most significant impacts of the sharing economy is the shift in consumer behavior towards unique and local experiences. A notable 70 percent of peer-to-peer platform users in MENA prefer Airbnb for the authentic experiences it offers. This change reflects a broader trend where travelers seek personalized stays that connect them with local cultures and communities. Traditional hotels, which often focus on standardized services, now face the challenge of adapting to these evolving preferences.

Economic impact on traditional hospitality
The economic impact on traditional hospitality businesses has been substantial. In cities with a high density of Airbnb listings in the MENA region, hotels have reported significant declines in revenue. For instance, hotels in Dubai have experienced annual losses of up to $250 million due to competition from Airbnb, Dubizzle, and other local alternatives. This financial strain underscores the need for traditional hotels to innovate and find new ways to compete in an increasingly crowded market.

Regulatory challenges and responses
The rapid growth of the sharing economy has also prompted significant regulatory responses. Over 100 major cities worldwide have implemented strict regulations on short-term rentals to address concerns about housing shortages, noise, and community disruption. In the Middle East, countries like the UAE and Saudi Arabia are also introducing regulations to manage the impact of peer-to-peer accommodations. This reflects the need to balance innovation with local norms and existing infrastructure. The evolving regulatory landscape highlights the tension between fostering innovation and ensuring compliance with local norms and safety standards.

Flexibility and scalability of accommodation supply
One of the advantages of the sharing economy is the flexibility and scalability it offers. Platforms like Airbnb can quickly add new listings to meet demand, especially during peak travel times or major events. This flexibility helps alleviate accommodation shortages and provides travelers with more options. However, it also poses challenges for traditional hotels that cannot as easily adjust their capacity, potentially leading to an imbalance in supply and demand.

Strategic approaches for the hospitality industry
To navigate the challenges and leverage the opportunities presented by the sharing economy, traditional hospitality businesses can adopt several strategic approaches:

Focus on value beyond accommodation
While peer-to-peer platforms often provide cheaper options, hotels can differentiate themselves by offering additional value. This could include high-quality amenities, exceptional service, or exclusive access to experiences or events. Therefore, by focusing on delivering superior value, hotels can attract guests who are willing to pay a premium for a more comprehensive and enriching experience.

Embrace technological advancements
Leveraging technology is crucial for traditional hospitality businesses to enhance guest experiences and operational efficiency. Investments in user-friendly booking platforms, mobile check-in services, smart room features, and personalized recommendations. For example, incorporating AI-driven personalized recommendations for travel activities and dining can enhance the overall guest experience. These technological enhancements can also help hotels stay competitive and meet the evolving expectations of modern travelers.

Strategic partnerships and collaborations
Collaboration with sharing economy platforms or developing similar peer-to-peer rental models within the hospitality sector can provide strategic advantages. Hotels can explore partnerships for shared services, cross-promotions, or even hosting unique experiences on these platforms. Such collaborations can help traditional hospitality businesses tap into new customer segments and offer more diverse and appealing options to travelers. Simon-Kucher global experience reveals that traditional hotels see typically a 15 percent increase in short-term revenue after listing on AirBnB.

Prioritize sustainability and responsible tourism
With the rise of conscious consumerism in the Middle East, the hospitality industry should prioritize sustainability practices and responsible tourism initiatives. Eco-friendly accommodations, efforts to reduce carbon footprints, and support for local communities can attract travelers who value environmental and social responsibility. For example, to attract GenZ travelers, hotels can partner with local farms to supply organic produce and implement the trending “farm-to-table” dining concept. By aligning with these values, hotels can enhance their brand reputation and appeal to a growing segment of eco-conscious travelers. Simon-Kucher’s market recent studies suggest the potential of up to 11 percent sustainability-based revenue premium for hospitality players.

In conclusion, the sharing economy has brought significant changes to the travel and hospitality industry. While it presents challenges, it also offers opportunities for traditional businesses to innovate and adapt. By focusing on value, embracing technology, forming strategic partnerships, and embracing sustainability, the hospitality industry can thrive in this evolving landscape.

Source:https://economymiddleeast.com/news/surviving-the-sharing-economy-trend/

July 5, 2024

UAE climbs to 29th in UNIDO’s Competitive Industrial Performance Index

The UAE has been ranked first in the Arab region and 29th globally in UNIDO’s Competitive Industrial Performance Index (CIP), climbing two spots from last year’s index. The CIP, which ranks 153 countries, assesses national industrial performance in the global economy, benchmarking the ability of countries to produce and export competitively.

This index gauges and compares the strength of industrial competitiveness within countries. It is based on indicators including technological capabilities, innovation, productivity, and trade performance. The UAE has remained in the CIP’s top quintile, reflecting its position as a regional and global player in the industrial sector. Under the CIP, the UAE climbed from 124 to 115 in Industrial Export Quality, 98 to 95 in Share of Manufacturing Value Added in GDP, 110 to 97 in Share of Manufacturing Exports in Total Exports and 17 to 14 in Manufacturing Export per Capita indices.

His Excellency Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said: “The UAE leadership’s vision and directives have laid solid foundations to achieve sustainable economic development. The country has made qualitative leaps in industrial development and has been able to strengthen its strategic position as it moves towards achieving its industrial goals through a set of competitive advantages that enhance its position as a global hub for manufacturing and innovation.

“The recent UNIDO ranking confirms the UAE’s leadership in industry and advanced technology and highlights the country’s industrial trajectory. It also reflects MoIAT’s commitment to stimulating sustainable industrial growth and enhancing investment attractiveness as well as regional and international competitiveness through deploying advanced technologies and solutions of the Fourth Industrial Revolution.”

His Excellency emphasized the ministry’s keenness to enhance the competitiveness of the national industrial sector in line with the objectives of Operation 300bn. Since its inception in 2020, the ministry has implemented strategies, policies, initiatives and programs that have contributed to the development of the sector. These include Make it in the Emirates, the National ICV Program and the Technology Transformation Program, which have contributed to enhancing the enablers and incentives offered by the industrial sector to local and international investors.

They have also contributed to empowering national talents and developing their technical competencies and skills, enhancing supply chain resilience, and motivating national and international companies to enter partnerships to manufacture quality products in the UAE. These initiatives are largely responsible for the UAE ranking first in the region in UNIDO’s index for two years running, while climbing to 29th globally in competitive industrial performance and rising 9 places in the quality of industrial exports index.

His Excellency added: “The UAE’s announcement to reduce carbon emissions by 40 percent by 2030, in the third update of the second edition of the Nationally Determined Contributions report, underlines our leading model for building a sustainable future. The industrial sector is critical to achieving these sustainability goals. We remain committed to enhancing the competitiveness of the national industrial sector, as well as its attractiveness to investors, through focusing on expanding the use of advanced technology, entrepreneurship, and investing in sustainable future industries in line with our net zero by 2050 commitment.”

Her Excellency Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, said: “The UNIDO ranking builds on significant strides made by the UAE across several global competitiveness reports. It reflects the government’s commitment to strengthening the UAE’s position as one of the most advanced nations, and recognizes the ministry’s efforts – as well as those of its strategic partners – to drive sustainable development.”

She added: “The UAE holds the top ranking in 152 competitiveness indices globally and is among the top 10 in 425 competitive indices. These rankings are based on the Federal Competitiveness and Statistics Centre’s analysis of 1,502 indices published by the United Nations and other international organizations.”

MoIAT’s various initiatives have helped enhance the industrial sector’s efficiency and competitiveness, demonstrating the ability of UAE industries to compete globally. This has been underlined by the increasing contribution made by industry to GDP. The sector contributed AED 180 billion last year. Additionally, these programs have significantly boosted the UEA’s non-oil industrial exports, estimated to have reached more than AED 170 billion in 2022.

One of the main drivers of industrial growth is the National In-Country Value Program. In 2022, six new entities joined the program. The program redirected AED 53 billion into the economy in 2022, a 25 percent increase from 2021, while helping to provide jobs for almost 2,000 UAE nationals.

Another key factor in the country’s industrial development in 2022 was the Technology Transformation Program (TTP). The program aims to boost exports of technological products by around AED 15 billion a year. The program will add AED 110 billion to GDP annually and drive AED 11 billion in technology investments. By automating the industrial sector, the program will also help to increase industrial productivity by AED 15 billion annually.

Source:https://economymiddleeast.com/news/uae-climbs-to-29th-in-unidos-competitive-industrial-performance-index/

July 5, 2024

Oman climbs five spots in 2024 Competitive Industrial Performance Index

Oman rose to the 53rd spot globally and the 4th spot regionally, in the 2024 Competitive Industrial Performance (CIP) Index released by the United Nations Industrial Development Organization, The CIP evaluates and measures the industrial competitiveness of 153 economies worldwide.

Industrial development initiatives fueling progress
Dr. Saleh Said Masan, undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, attributed Oman’s progress in the CIP to the implementation of programs and initiatives aimed at developing the industrial sector. Key factors behind this improvement include Oman’s ability to attract industrial investments based on advanced technologies, the launch of factory automation initiatives, and the consolidation of supply chains.

Oman’s Industrial Strategy 2040 supports growth
Dr. Masan also noted that Oman’s advancement in the CIP was bolstered by increased dedication to the Oman Industrial Strategy 2040. This strategy provides a general framework for industrial growth, focusing on upgrading converting industries through the use of advanced technology, developing innovative products, and expanding exports both regionally and internationally.

Robust performance in converting industries and non-oil exports
Data from the National Centre for Statistics and Information (NCSI) showed that the output of converting industries reached OMR951 million at fixed prices by the end of the first quarter of 2024, representing a 9.2 percent increase compared to the same period in 2023. Converting industries accounted for 10 percent of the sectoral contribution to Oman’s Gross Domestic Product (GDP).

Furthermore, Oman’s non-oil exports, predominantly industrial products, grew by 45 percent by the end of the first quarter of 2024 compared to the corresponding period in 2023, constituting 36 percent of total exports. New local and foreign investments in the converting industries sector have also experienced steady growth, diversification, and optimal distribution.

Source:https://economymiddleeast.com/news/oman-climbs-five-spots-in-2024-competitive-industrial-performance-index/