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,...

UAE set to run Kabul airport in deal with Taliban

 

Taliban

According to individuals familiar with the negotiations, the Taliban and the United Arab Emirates are close to agreeing on a plan that would see the Gulf state manage Kabul Airport as well as a number of other airports in Afghanistan.

In order to control Kabul Airport, landlocked Afghanistan's primary air link with the rest of the world, the Taliban, whose government continues to be an international pariah without official recognition, have courted regional nations like Qatar and Turkey.

But following months of back-and-forth negotiations in which the Taliban at one time suggested a joint UAE-Turkey-Qatar agreement, the sources claimed that the Taliban is now prepared to hand over full control of the operations to the UAE, which has previously managed Afghan airports.

A deal would make it easier for Islamist extremists to communicate with the outside world while ruling a poor nation plagued by drought, widespread hunger, and an economic crisis. Additionally, it would give Abu Dhabi the upper hand in its influence struggle in diplomacy with Qatar.

As part of the agreement with the UAE, Afghans will work at the airports, including in security positions. According to sources, this is important for the Taliban because they want to demonstrate their ability to employ people and also because they vehemently oppose the presence of foreign soldiers.

While talks over airspace management are ongoing, they said a security firm affiliated with the Emirati government has been hired and should shortly be disclosed.

Shortly after Taliban officials visited Abu Dhabi in May, the militants gave the ground services contract to UAE state-linked GAAC, which was in charge of managing security and ground handling services at Afghan airports prior to the Taliban takeover.

Around the same time, sources claim, negotiations between Qatar and Turkey and the Taliban fell through.

Officials from the UAE declined to comment when contacted by Reuters. A request for comment from GAAC received no response.

A spokesman for the Taliban transport ministry acknowledged that an agreement on aviation security had previously been reached with the UAE, but added that the agreement on air traffic was still being worked out or confirmed.

Although Kabul Airport would serve as a significant source of intelligence on movements into and out of the country, there are few direct financial benefits associated with its operations.

According to the sources, UAE airlines, which have not operated flights to Afghanistan since the Taliban took control last year, are anticipated to start operating again to Kabul and perhaps other Afghan airports.

If the UAE agreement can address significant security concerns such as the threat posed by the Afghan branch of the Islamic State, whose targets have included the Taliban, other airlines that have previously stopped operating flights may also do so again.

According to the sources, the Taliban frequently made mysterious changes to the members of its team that was negotiating with Qatar and Turkey in the months before the ground services were granted to the UAE.

The Taliban later attempted to change the terms of the agreement by raising airport fees and taxes and weakening Qatar's and Turkey's control over tax collection, they continued.

When contacted by Reuters, a Qatari official declined to comment at the time. Speaking under the condition of anonymity, a Turkish official stated that negotiations with the Taliban had ended "some time ago."

The UAE's initiatives are a part of an understated but determined drive by Abu Dhabi to strengthen long-standing ties with the Taliban. In the months since the hardline insurgents seized power in August, this effort has included government aid and diplomatic efforts.

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