Latest news with #economicexpansion
The National
04-07-2025
- Business
- The National
How growing cities like Abu Dhabi and Dubai can continue to be affordable for all
New population figures for Abu Dhabi released this week present an intriguing picture of an emirate undergoing a sustained period of growth. Data from Statistics Centre Abu Dhabi showed the emirate's population had passed four million for the first time, which represented a 7.5 per cent increase in population and a 9 per cent increase in the workforce in the past year. SCAD noted that the emirate's population has grown by more than 50 per cent over the past 10 years. Some of this should come as no surprise. The annual Arab Youth Survey traditionally ranks the UAE as the place in the world where young people want to live because of the opportunities it offers and the stability of the country. And it is not just young people who recognise this country's enviable track record for growth, safety and development. People from all over the world and from all strata of the economy want to live and work in the UAE and see their long-term futures here. Dubai's population is expected to reach four million this year, too. Together, Abu Dhabi and Dubai are now two of the world's best cities: magnets for talent, beacons of the knowledge economy, safe places to live with world-class facilities and enviable portfolios of tourism and leisure destinations. The discussion points around population growth are well-rehearsed. Rapid growth sets the conditions for innovation and dynamism and can spur economic expansion – to that point, gross domestic product grew in the UAE by about 4 per cent last year – but fast-paced expansion can also deliver strains on the system in such areas as housing stock and traffic. A roads survey published this week said that most of those surveyed believe traffic is getting heavier and that congestion is more commonplace. Suggested solutions from the survey include improvements to the bus and road network, expanding metro services and offering more opportunities to work from home. The question of housing is a near perennial one. A generation ago, Abu Dhabi's housing market was simmering. Too little supply and rapid population growth made it challenging for those who needed to move or had just arrived in the city. A series of measures to ease pressure cooled the market over a prolonged period. Nowadays, the market has found its natural levels and there is more supply, but there will always be hotspots, some of which can emerge suddenly. The Disney effect, for instance, was visible on Yas Island almost as soon as the announcement of the theme park's arrival was made earlier this year, even though neither a construction schedule nor a tentative opening date has been confirmed. But rapid population growth does underscore the need for both Abu Dhabi and Dubai to keep thinking about and developing a range of affordable housing solutions to meet demand. Abu Dhabi launched a Value Housing Programme in March to deliver what was described as 'high-quality units'. Dubai introduced a support scheme for first-time buyers this week in the emirate's property market. Dubai also approved a plan for more than 17,000 affordable houses in the spring. The ideal mix is for housing to be available across a wide spectrum of needs. If there is too much luxury housing, the market won't meet the needs of those with more modest budgets, even though it is common for developers to want to bring high-end properties to the market to stir up a form of mass aspiration and generate bigger profits. Housing stock imbalance also creates cycles of under and over-supply. If there is too much concentration on one sector or another, an inevitable imbalance ensues, and workers or families will eventually decide that their future lies elsewhere. The system relies on several forms of equilibrium being in play. Dubai Municipality's recent moves to tackle illegally partitioned residential units are an important safety measure aimed at clamping down on landlords making this type of conversion into multiple occupancy units. These actions also shed light on the natural human instinct to want to live close to work or where you send your children to school, or to find a place to live where you can make your budget fit. Further, they indicate a need to keep regulatory enforcement in place and for even more affordable stock to be made available that meets both the municipality's legal framework and remains within reach of many, both financially and geographically. An equitable property market is a solid building block for growth and happiness in the broader economy. This is not an issue exclusive to one city or one place in the world. Older neighbourhoods in Abu Dhabi have dwellings that have been subdivided after they were previously single-family units. It is the responsibility of the building's owners to stay within the limits of the law with conversions and to ensure their tenants are able to live safely. But the fact that there are such buildings at all is, once again, a symbol of population growth and dynamic market forces. The question then shifts to how do you mitigate these circumstances and what your longer-term response might be. Cities globally have faced that challenge for centuries. The answer to that challenge may rest in one of the magnets that secures such strong population growth figures in both Dubai and Abu Dhabi in the first place. Namely, the forward-looking nature of urban and economic policy formulation. There may also be a direct comparison to traffic congestion, one of the other harbingers of rapid population growth. An array of policy prescriptions are inevitably required to find the right solution and keep people moving forwards.
Bloomberg
23-06-2025
- Business
- Bloomberg
Global Economy, Resilient to Tariffs, Faces New Mideast Storm
I'm Chris Anstey, an economics editor in Boston. Today we're looking at the latest threat to wreck the global economic expansion. Send us feedback and tips to ecodaily@ And if you aren't yet signed up to receive this newsletter, you can do so here. Five months into the biggest trade war the global economy has seen in the postwar era, the bottom has hardly fallen out of major economies.
Malay Mail
17-06-2025
- Business
- Malay Mail
Malaysia must adapt industrial, digital, and green growth policies to become high-income economy, says Anwar
KUALA LUMPUR, June 17 — Malaysia must be adaptive in its policies, have strong institutions, and maintain a clear vision of its chosen direction to achieve its goal of becoming a high-income economy, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar said the Madani Economic Framework reflects the nation's high-income economy vision and articulates a dual commitment. 'First, industrial policies should be modernised, focusing on sectoral competitiveness, digital transformation, green growth and value chain upgrading. 'Second, the benefits of economic expansion should be broad-based, particularly for the vulnerable and underserved segments of our society,' he said in his keynote address at the Sasana Symposium 2025 here today. He added that the Madani reform agenda adopts a whole-of-nation approach as the country prioritises five critical areas, namely fiscal sustainability and governance, subsidy rationalisation, tax reform, human capital upliftment and institutional integrity. — Bernama
Economy ME
09-06-2025
- Business
- Economy ME
Saudi Arabia's real GDP grows 3.4 percent in Q1 2025, says GASTAT
Saudi Arabia's economy expanded more than expected in the first quarter of 2025, with real GDP achieving a growth rate of 3.4 percent compared to the same quarter of 2024. The latest results beat flash estimates of 2.7 percent released by the Saudi General Authority for Statistics (GASTAT) in May. In its latest report, GASTAT revealed that this growth was driven by a 4.9 percent expansion in non-oil activities, in addition to a 3.2 percent growth in government activities. Earlier this year, the statistics agency expected non-oil growth to reach 4.2 percent. However, oil activities recorded a decline of 0.5 percent, lower than the previously expected 1.4 percent contraction. Meanwhile, seasonally adjusted real GDP rose by 1.1 percent compared to the fourth quarter of 2024. Non-oil sector boosts growth The results showed that non-oil activities were the main driver of the annual real GDP growth, contributing 2.8 percentage points. Additionally, government activities and net taxes on products contributed positively by 0.5 and 0.2 percentage points, respectively. 'It is worth noting that most economic activities achieved positive annual growth rates. Wholesale and retail trade, restaurants, and hotels recorded the highest growth rates during the first quarter of 2025, reaching 8.4 percent year-on-year and 0.7 percent quarter-on-quarter,' added the report. With Saudi Arabia's oil GDP shrinking, the kingdom may face a widening budget deficit, with the International Monetary Fund saying Riyadh needs an oil price of over $90 per barrel to balance its books compared to prices of around $60 per barrel in recent weeks. Saudi Arabia, the world's biggest oil exporter, lowered its July prices for Asian buyers at the beginning of June after OPEC+ raised output for a fourth month. OPEC+ agreed to another big output increase of 411,000 bpd for July, having increased output by the same amount in May and June. Read: Dubai Program for Gaming 2033 propels sector's expansion to over 350 companies Saudi Arabia boosts diversification efforts While Saudi Arabia's oil economy shrank, its non-oil GDP rose 4.9 percent last quarter. Driven by its economic transformation program, Vision 2030, Saudi Arabia aims to decrease the dependence of its economy on oil. In addition, it aims to boost its non-oil revenues by focusing on tourism and sports among other key sectors. Therefore, it will be hosting the 2029 Asian Winter Games, set to feature artificial snow and a man-made freshwater lake, and the 2034 World Cup, for which 11 new stadiums will be built and others renovated. Further boosting GDP growth, Saudi Arabia's non-oil exports rose 13.4 percent annually to SAR81 billion ($21.6 billion) in the first quarter of 2025, according to GASTAT. National non-oil exports, excluding re-exports, increased by 9 percent, while the value of re-exported goods increased by 23.7 percent during the same period. The report also revealed that merchandise exports decreased by 3.2 percent in Q1 2025 compared to Q1 2024, as a result of an 8.4 percent decrease in oil exports. Consequently, the percentage of oil exports out of total exports decreased from 75.9 percent in Q1 2024 to 71.8 percent in Q1 2025. On the other hand, imports increased by 7.3 percent in Q1 2025, and the surplus of the merchandise trade balance decreased by 28 percent compared to Q1 2024
Arab News
03-06-2025
- Business
- Arab News
Saudi Arabia's non-oil sector growth continues in May as PMI climbs to 55.8
RIYADH: Saudi Arabia's non-oil private sector registered an improvement in operating conditions in May, as the Riyad Bank Purchasing Managers' Index rose to 55.8, signaling continued economic expansion, a new analysis showed. According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the index edged up from 55.6 in April, remaining well above the 50 mark that separates growth from contraction. However, the figure remained below the recent high of 60.5 recorded at the beginning of 2025. The latest data pointed to a sharp increase in new order volumes, which rebounded after weakening in April. Companies linked the increase to stronger customer demand, improved sales performance, industrial development, and marketing efforts. Foreign orders also rose, but at the slowest pace in seven months. 'Saudi Arabia's non-oil economy maintained solid momentum in May, with the PMI rising slightly to 55.8 from 55.6. While the pace of output growth eased to its softest since September 2024, overall activity remained robust,' Naif Al-Ghaith, chief economist at Riyad Bank, said. He added: 'Firms reported improvements in demand, new project starts, and greater labor capacity as key drivers. This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter.' The survey showed that output continued to grow, though at a softer rate for the fourth straight month. The construction sector recorded the strongest rises in both output and new business. Employment in the non-oil sector rose sharply in May, with the increase in staffing levels among the fastest seen in over a decade. Surveyed businesses attributed this to expansion efforts and higher output needs. 'Looking ahead, sentiment among non-oil firms has strengthened visibly. Business expectations looking forward reached their highest level since late 2023. Hiring momentum remained strong as companies expanded teams to support output growth, particularly in operations and sales,' Al-Ghaith said. Meanwhile, purchasing activity surged to a 14-month high. However, firms showed greater caution toward stockpiling, resulting in a slower accumulation of inventories compared to April. The report also indicated that input prices rose sharply, mainly due to increased supplier charges for raw materials. Wage-related inflation, however, eased. Despite cost pressures, companies reduced their selling prices, largely driven by a decline in service sector charges and competitive market conditions. The survey data were collected from around 400 private sector companies across the manufacturing, construction, wholesale, retail, and services sectors.
