UAE Non-Oil Business Activity Surges to Nine-Month High in December

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 The United Arab Emirates' non-oil private sector recorded its fastest expansion in nine months in December 2024, buoyed by strong domestic demand and increased business activity, according to the latest S&P Global Purchasing Managers’ Index (PMI) report. PMI Highlights Robust Growth The seasonally adjusted UAE PMI climbed to 55.4 in December from 54.2 in November, signaling robust growth well above the 50.0 threshold that separates expansion from contraction. This marked the third consecutive monthly increase, underscoring sustained recovery in the non-oil sector. Key drivers of growth included a notable rise in new business activity. The new orders subindex rose sharply to 59.3 in December from 58.0 in the previous month, reflecting strong domestic demand. Challenges Amid the Growth While domestic demand flourished, export growth slowed, with the export orders subindex dropping to a seven-month low. Additionally, businesses faced mounting backlogs due to capacity constraints,...

US to proceed with $23 billion to UAE amid review

 


The United States is going to proceed with the sale of more than $23 billion worth of weapons to the United Arab Emirates. According to media reports, US President Joe Biden's administration has told Congress it would move forward with the weapon sales to the UAE while continuing to review the details and discuss with Emirati representatives about the use of the weapons.

In November 2020, the Trump administration told Congress it had approved the sale of weapons to the UAE as part of the US-brokered 'Abraham Accord' that was signed between the UAE and Israel in September with the aim of normalisation of ties in the region.

However, President Joe Biden had halted the US arms sales in January 2021, stating that his administration would conduct a thorough review of the billions of dollars worth of arms deal approved by former US President Trump before leaving office.

The $23.37 billion-worth package consisted of F-35 aircraft, armed drones, 50 F-35 Lightning II aircraft, 18 MQ-9B Unmanned Aerial Systems, and a number of air-to-air and air-to-ground munitions.

In December 2020, an effort to break off the weapons deals fell short in the US Senate after Trump's fellow Republicans extended support to his plans. Subsequently, US sales of advanced F-35 fighter jets and other advanced defense systems to the UAE passed Congressional review.

Later on January 20, the Trump administration finalised the weapons sales to the UAE, minutes before Joe Biden's inauguration. In the final days of his presidency, Trump signed a letter of agreement (LOA) with the Emirati government to solidify the terms of the deal. However, as the Biden administration announced a review of the massive arms sales in late January, the UAE welcomed it as an effort to renew regional dialogue.

According to a State Department spokesperson, if implemented, the estimated delivery dates of the weapons to the UAE would be after 2025 or later.

“We will also continue to reinforce with the UAE and all recipients of US defense articles and services that US-origin defense equipment must be adequately secured and used in a manner that respects human rights and fully complies with the laws of armed conflict,” a State Department spokesperson said, speaking to Reuters.

Meanwhile, the result of the review is yet to be released to the public by the US Statement Department.

The US arms sales would enhance the UAE's military counterweight by strengthening its deterrence against mutual adversaries. After years of operational experience and coordinated investment, the UAE armed forces have emerged as one of the leading militaries in the region. It has become one of the closest military allies for the US in the Middle East in recent years. The US arms sales would boost UAE's efforts to ensure collective security in the region.

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