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: Travelers to save time on Schengen visa appointments

 

UAE

Finally, UAE citizens no longer have to wait three months or longer to travel to Europe on a Schengen visa. This will undoubtedly increase corporate travel to the EU as the UAE prepares for a new season after the summer.

The availability of Schengen visa appointments is currently dependent on the embassy or nation that travelers from the UAE are applying with, according to Raheesh Babu, Chief Operating Officer of the online travel site Musafir.com. Some nations won't accept appointments for visas beyond October.

Airlines' prices to Europe will start to decline starting in the first week of September, according to travel agents. Currently, a ticket to Amsterdam can cost between Dh3,000 and Dh4,000; however, in September, the cost will be between Dh1,500 and Dh2,500. Currently, a one-way ticket to Berlin will cost at least Dh3,000, but that price will drop to 50% by the end of the month.

For a ticket to Madrid, airlines are already charging up to Dh2,500, but future price increases are not anticipated to be significant. In the first week of September, the cheapest airfare on the London to Paris route will cost less than half as much as it does currently.

Travel agency: "Fares won't return to pre-pandemic levels any time soon. Fuel prices are still fairly high. "Corporate travel will continue to increase even while leisure travel will decline dramatically in the coming weeks."

With the introduction of Premium Economy by Emiratesairline on flights to London and Paris, business travel received a further boost.

Flight disruptions

Despite a decline in airline cancellation rates, the chaotic summer air travel season is set to last into the fall. Ryanair employees in Spain have scheduled weekly strikes until January 7, 2023, and aviation employees in Portugal will be participating in several days of industrial action in August.

Because of the resurgence in travel demand, airlines have had a difficult time keeping up. Operators' poor preparation and their inability to prepare ahead of the summer travel peaks have all contributed to the continued congestion at airports. The number of daily flights or passengers at London Heathrow and Amsterdam Schiphol airports is being restricted.

The beginning of a reimbursement programme for travellers who arrived at the airport on time between April 23 and August 11 but missed their flight owing to abnormally long wait times at security control was announced by Schiphol last month.

Rising capacity

According to aviation data company OAG, Western Europe overcame interruptions to become the biggest regional aviation market in the week ending August 15.

Approximately 23.68 million seats were deployed by airlines in the market, up 36% from the same time last year, but down 11% from 2019. The various school holiday seasons in each region make this a "enjoy it while you can" moment for Western Europe, according to aviation analyst John Grant in an OAG piece. "Normal service will resume in September.

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