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,...

Strengthening Economic Ties: UAE and USA Sign Pivotal Customs Agreement.

Today represents a new milestone in the history of the economic cooperation that has existed between the United Arab Emirates and the United States, as the two states signed a customs cooperation agreement. This agreement was concluded during President Sheikh Mohamed bin Zayed's official visit to America and it paves the way for enhanced trade and customs cooperation. The presence of Ali Mohammed Al Shamsi – Chairman of the Federal Authority for Identity, Citizenship, Customs and Port Security, and Troy A Miller – Acting Commissioner of US Customs and Border Protection, indicates how critical this development is in solving contemporary trade challenges.

This accord is expected to promote growth in the already existing economic partnership between the two countries. The two nations intend to curb illegal trade as well as enhance the movement of goods across borders by increasing the level of customs cooperation. The importance of information exchange, skills transfer and training highlighted by Al Shamsi has a larger purpose: to build the skills of customs personnel and introduce the appropriate standards. In particular, with the steady provisions made for the growth of bilateral trade, the cooperation in customs shall be very effective in providing the necessary support to sustain the growth while enhancing efficiency of the trade activities of the countries involved.

In addition, considering the UAE’s role as a transshipment center in the region and the fact that the US is the biggest economy in the world, this agreement becomes more important than ever. This is an expression of the understanding of both countries that they are important in the world economy. By encouraging greater technical and information cooperation, this agreement strengthens the growing and changing ties between the United Arab Emirates and the United States, which will not allow any potential trade obstacles, but will rather foster new possibilities.

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