Lebanon’s business conditions hit four-month high in February

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Business conditions in Lebanon’s private sector improved in February to a four-month high, indicating a slower pace of deterioration, amid a relative increase in new orders and output.

The country’s Blom purchasing managers’ index (PMI), a measure of the strength of its private sector, rose to 48.8 in February, from 47.7 in January, its highest level since October.

A reading above the neutral level of 50 indicates growth while one below it points to a contraction.

“Lebanon seems to be stabilising as the latest PMI index improved noticeably, though still below the 50 threshold,” said Fadi Osseiran, general manager at Blominvest Bank.

“It is obvious that cautious positivity is driving the index, but not for long as the short-term positivity is facilitating the better-than-expected demand.”

However, the country’s political problems are taking a toll on the economy, piling pressure on the banking sector and denting business confidence amid political uncertainty, the data found.

Lebanon continues to be mired in its worst economic and financial crises in decades amid a political deadlock that has blocked the formation of a new government and the enactment of reforms required to unlock billions of dollars in aid.

“The problem in the country remains political as the presidential vacuum is taking its toll on the state, economy and, most importantly, it is pressuring the banking sector,” Mr Osseiran said.

“These developments only prove the extent to which the Lebanese crisis is inherently political at its core, and the solution lies in a political settlement that paves the way to stabilise and grow the economy for the periods ahead.”

Inflation in Lebanon hit an annual rate of about 124 per cent in January, official data showed.

Hyperinflation continued for the 31st consecutive month, led by the soaring communication, education, health, restaurant and hotel prices, as well as rising food, water and energy costs, the Central Administration of Statistics’ Consumer Price Index showed last month.

The CPI increased by about 8.43 per cent from December 2022.

Earlier this week, the country began to price goods in its supermarkets in US dollars as the value of the Lebanese pound hit new lows.

The move is an attempt by the Ministry of Economy to regulate flagrant price manipulation as the pound continues to depreciate rapidly.

Business confidence was subdued in February amid political uncertainty and price volatility, according to the PMI survey.

Overall input costs rose at the quickest pace in more than two and a half years last month as survey respondents pointed to unfavourable exchange rate movements against the US dollar.

As a result, selling charges rose at the second-fastest pace on record as companies tried to protect their margins.

The latest survey data showed a marked acceleration in overall input cost inflation, with operating expenses rising at their sharpest rate since June 2020.

The increase was mainly a result of surging purchase costs, which private companies linked to unfavourable exchange rate movements versus the US dollar.

Output prices increased during February at the second-fastest rate since data collection began in May 2013.

While new business orders fell at the softest pace in four months, weak client purchasing power continued to restrict new business wins, according to the survey.

However, private sector employment levels rose for the first time in seven months, although marginally.

Companies continued to work through their backlogs, with outstanding business volumes falling for a sixth consecutive month.

Source:https://www.thenationalnews.com/business/economy/2023/03/03/lebanons-business-conditions-hit-four-month-high-in-february/

Egypt says it is not at risk of bankruptcy

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Egypt’s government has rejected claims that the country is exposed to bankruptcy risk due to its debts and the cost of servicing them during rate rises and inflation.

It also cited a report on the performance of the Egyptian economy from June to November.
The Cabinet said Egypt’s ratio of external debt to GDP was 34.1 percent, below the maximum risk limit of 50 percent.

The report said the structure and diversity of Egypt’s external debt instruments including loans, deposits, issued bonds and short-term credit facilities, were positive.

The Cabinet said that most of Egypt’s external debt was medium and long-term. Around two-thirds of foreign debt was also at fixed interest rates — which mitigates the risks of international rate increases.

It added: “In light of the successive economic crises that the world witnessed during the previous periods, governments all over the world tended to adopt expansionary economic policies to mitigate the consequences of the negative effects of these economic crises on families and companies.

“Such policies led to a significant rise in levels of global indebtedness, which rose to a record 350 percent of the global GDP by the end of the second quarter of 2022.”

The Cabinet added that Egypt aimed to maintain fiscal discipline, reduce the budget deficit to 5.6 percent of GDP, and achieve the first surplus from the state’s general budget permanently at 0.2 percent of the GDP.

These measures would contribute to reducing indebtedness and achieving financial and economic stability for the country’s general budget and ensure safety for current and future generations, said the statement.

The Cabinet statement came as Egypt’s Central Agency for Public Mobilization and Statistics announced on Thursday that the general index of consumer prices rose by 2.5 percent to 140.7 points in November.

The annual inflation rate in November rose to 19.2 percent, compared to 16.3 percent in October, said an agency statement.
The annual inflation rate in urban areas rose during November to 18.7 percent, compared to 16.2 percent in October.
The agency’s statement attributed the rise to prices increase for bread and grain by 52.1 percent, meat and poultry by 30.3 percent, fish and seafood by 38 percent, dairy products and eggs by 40 percent, and coffee and tea by 23.1 percent.

It also cited price increases in tobacco products by 0.3 percent, clothing by 2.1 percent, footwear by 1.3 percent, home furnishings by 2.6 percent, and appliances by 3.1 percent.

Source:https://www.arabnews.com/node/2213166/middle-east

Bahrain joins industrial partnership for sustainable development

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Bahrain has now joined the UAE, Egypt, and Jordan to become the fourth member of the Industrial Partnership for Sustainable Economic Development at its second Higher Committee meeting held in Cairo, Egypt. Bahrain will boost the partnership’s total industrial manufacturing value from $106.26 billion to $112.5 billion. The Partnership will focus on textiles and clothing among other sectors in the next phase.
Bahrain possesses a strong industrial sector with more than 9,500 companies and 55,000 employees as well as industrial foreign direct investments worth $4.3 billion. The UAE, Egypt, Jordan, and Bahrain represented 30 per cent of the Middle East and North Africa’s industrial contribution to the GDP, adding up to industrial exports worth $65 billion in 2019. The combined population of the countries is 122 million, which is 27 per cent of the Middle East and North Africa and 49 per cent of the region’s youth population under 24.

In May 2022, the UAE, Egypt, and Jordan had launched the Industrial Partnership for Sustainable Economic Development in Abu Dhabi. The initiative aims to establish integrated industries that contribute to diversifying the economy, promoting its growth and providing specialised job opportunities.

In the first phase, the Partnership has shortlisted 12 projects costing $3.4 billion, of the 87 proposals it received for setting up industrial projects in fertilisers, agriculture and food sectors. Along with textiles and clothing, the Partnership will focus on chemicals, plastics, and metals in the next phase.

Foreign direct investment in the UAE, Egypt, and Jordan touched $151 billion between 2016-2020, which is about 42 per cent of the new foreign direct investment in the Middle East. In 2019, the countries exported goods valued at $433 billion in total, while the imports added up to around $399 billion.

SOurce:https://www.fibre2fashion.com/news/textile-news/bahrain-joins-industrial-partnership-for-sustainable-development-282128-newsdetails.htm

Al Mouj Muscat drives new financing partnership with United Finance

Oman’s premium lifestyle destination, Al Mouj Muscat, has entered into a new partnership with United Finance giving residents the option of preferred financing rates to help them reach their lifestyle goals.

United Finance is one of the leading finance and leasing services providers in the Sultanate and thanks to the new agreement, as well as attractive rates, residents benefit from having a premium and personalised service through a fast and convenient process for securing finance.

Nasser bin Masoud Al Sheibani, CEO of Al Mouj Muscat, says: “Al Mouj Muscat is a community designed to give all of our residents’ access to a truly unique oceanfront lifestyle, where life can be enjoyed at its best. Partnerships like this one are a perfect example of the opportunities we create, and an easy, tailored and entirely exclusive and extremely attractive financing offer. A true reflection of our ongoing commitment to providing services and experiences with our residents’ value.”

United Finance was established in 1997 and commenting on the recent signing, its CEO Nasser bin Salim Al Rashdi says, “It is an honour to provide this bespoke service for the residents of Al Mouj Muscat. As a non-banking financier, we are always looking for ways to reimagine our customer service experience and by make financing and loans readily available to consumers.”

The preferred rates United Finance have introduced to Al Mouj Muscat require only a 20 per cent down payment for up to three years credit which applies to owners as well as tenants at Al Mouj Muscat who meet the eligibility criteria.

Source:https://timesofoman.com/article/113602-al-mouj-muscat-drives-new-financing-partnership-with-united-finance

Saudi unemployment unchanged at 11.3% in Q3

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Unemployment among Saudi citizens remained at 11.3% in the third quarter, unchanged from the previous three months, official data showed on Monday.

The unemployment rate of Saudi Arabia’s working age population, which includes all residents above 15 years old, was 6.6% in the third quarter, data from the General Authority for Statistics showed.

That was also unchanged quarter on quarter, but down by 1.9 percentage points year on year.

Saudi Arabia has been pushing through economic reforms since 2016 to create millions of jobs and aims to reduce unemployment to 7% by 2030, but those plans were disrupted by the COVID-19 pandemic that sent oil prices plummeting last year.

Unemployment hit a record high of 15.4% in the second quarter last year but has declined rapidly since then, reaching pre-pandemic levels in the first quarter this year.

source:https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-unemployment-unchanged-at-11-3-in-q3/articleshow/88388730.cms

Dubai business major announces hybrid working week amid UAE’s weekend reforms

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Easa Saleh Al Gurg Group (ESAG), one of the largest family business conglomerates operating in the UAE, has announced that staff will adopt a hybrid style working schedule from January 1 in line with the new weekend shift announced by the government last week.

ESAG staff, who work across 27 companies, will have a blended work timetable consisting of a four-day office schedule while they will work from home on Fridays.

The government weekend will start at midday on Fridays and end at the close of Sunday, meaning a four and a half day working week. The UAE is the first nation in the world to introduce a national working week shorter than the global five-day week.

ESAG which has a business portfolio in retail, building and construction, industrial and real estate sectors, said in a statement that it believes that this “path-breaking move” will further enhances the UAE’s competitiveness.

The UAE first led the regional transition from a Thursday-Friday weekend to Friday-Saturday in 2006, it added.

“We are encouraged by this new era of change in the UAE’s Golden Jubilee, which aligns with the larger commitment that by the year 2071, residents will be living in the best country in the world. At ESAG we strive to maximise employee wellbeing and performance by keeping our workforce happy and engaged,” said Easa Al Gurg, group CEO.

Easa Saleh Al Gurg Group (ESAG), one of the largest family business conglomerates operating in the UAE, has announced that staff will adopt a hybrid style working schedule from January 1.
Easa Saleh Al Gurg Group (ESAG), one of the largest family business conglomerates operating in the UAE, has announced that staff will adopt a hybrid style working schedule from January 1 in line with the new weekend shift announced by the government last week.

ESAG staff, who work across 27 companies, will have a blended work timetable consisting of a four-day office schedule while they will work from home on Fridays.

The government weekend will start at midday on Fridays and end at the close of Sunday, meaning a four and a half day working week. The UAE is the first nation in the world to introduce a national working week shorter than the global five-day week.

ESAG which has a business portfolio in retail, building and construction, industrial and real estate sectors, said in a statement that it believes that this “path-breaking move” will further enhances the UAE’s competitiveness.

The UAE first led the regional transition from a Thursday-Friday weekend to Friday-Saturday in 2006, it added.

“We are encouraged by this new era of change in the UAE’s Golden Jubilee, which aligns with the larger commitment that by the year 2071, residents will be living in the best country in the world. At ESAG we strive to maximise employee wellbeing and performance by keeping our workforce happy and engaged,” said Easa Al Gurg, group CEO.

Easa Al Gurg, group CEO.
“The new working schedule encourages staff to have a healthy work-life balance and also supports those with school going children, encouraging family time and interaction. Our aim is to also create a work environment where everyone is dedicated to deliver a strong performance whilst being in a healthy state of mind and body. Through this we believe we will improve productivity and ultimately profit.”

He added: “As a leading private sector enterprise which engages with multiple business partners across the world, this change in the working week will help us further expand our reach, align with global market movements, as well as further achieve strategic agreements across diverse sectors.”

Announced on International Women’s Day in a LinkedIn post by Muna Al Gurg, director of retail at Easa Saleh Al Gurg Group, she said company has agreed to extend its maternity to three months of fully paid leave.

The Group’s key joint ventures include Al Gurg Unilever, Siemens, Al Gurg Fosroc, Al Gurg Smollan, Akzo Nobel Decorative Paints, Siemens Healthcare and Siemens Mobility.

ESAG is a regional partner to over 370 international brands and principals from across the world including Osram, British American Tobacco, Dunlop, Armitage Shanks, SieMatic, Steelcase, Delta, Trespa, Lutron, Danfoss, Smeg, and 3M.

Source:https://www.arabianbusiness.com/gcc/uae/uae-politics-economics/dubai-business-major-announces-hybrid-working-week-amid-uaes-weekend-reforms