OPEC+ Extended the Ongoing Oil Production Cuts into 2026…

UAE News:

UAE PMI inched up to 54.2 in November (October: 54.1), with the new orders subindex rising to 58.0 (from 55.9) amid a slower reading for output (59.6 from 61.3) and employment weakened to a 31-month low. Input costs were stable, and firms continued with further price discounting. Dubai PMI rose, up to 53.9 from October’s 53.2.

UAE Minister of Economy disclosed that there were more than 1.5mn registered trade licenses in the country.

Abu Dhabi rolled out a few measures to support non-oil diversification efforts including a centralised business registry authority (Abu Dhabi Registration Authority) in a bid to simplify processes for businesses. Other business friendly policies announced include a strategic roadmap for the Abu Dhabi Chamber of Commerce and Industry for growing the private sector, and the creation of a Family Business Council for family-owned businesses.

Dubai unveiled a Dubai Walk masterplan, with an aim to transform the city into a pedestrian friendly one. The pilot phase will run from 2025 to 2027 and the plan also aligns with the 2040 urban master plan’s “20-minute city” goal.

ADNOC signed a 15-year contract with Malaysia’s Petronas to supply 1mn tonnes per annum of LNG (from its Ruwais LNG project), with deliveries estimated to begin from 2028.

Dubai will reinstate the 30% municipality tax on alcohol from the beginning of 2025. The tax had been removed in 2023 in attempt to make the city/ dining out more affordable.

The acting Director General of Abu Dhabi Projects and Infrastructure Centre has more than 600 infrastructure projects valued at over AED 200bn. These projects, covering national housing, transportation and tourism initiatives, are open for collaboration with the private sector.

MENA News:

Syria rebels, who started the offensive on the 27th of November, seized the capital, forcing President Assad to flee the country.

Lebanon’s PMI inched up to 48.1 in November, from October’s 44-month low of 45.0, with signs of recovery in exports and domestic demand though employment posted a slight contraction.

Oman and Belgium signed an MoU to strengthen their green hydrogen collaboration: in addition to joint research and technical training programs, the focus for cooperation will be on analyzing the value chains for importing green hydrogen, developing shipping infrastructure in Oman, and overcoming legislative challenges.

Qatar PMI inched up to 52.9 in November (October: 52.8), with inflows of new business expanding for the 11th consecutive month and input prices index declining from October’s 4-year high.

Qatar Central Bank issued a regulatory framework for digital banks, including regulatory requirements, process of obtaining a license and ensuring accountability.

During a 2-day visit of Qatar’s Emir to Britain, plans were announced for Qatar to invest GBP 1bn in climate tech in the UK in addition to an agreement to promote cooperation in financial services.

QatarEnergy signed a long-term agreement with Singapore-based Shell to supply 3 mn tonnes per annum of LNG to China, with deliveries to start from January 2025.

OPEC+ extended the ongoing oil production cuts into 2026: the current voluntary cuts of 2.2mn bpd will continue till March 2025 after which an unwinding will begin and last 18 months until September 2026. The UAE will be allowed to raise output by 300k bpd gradually from April till end-September 2026.

The aggregate wealth of UAE billionaires surged by 39.5% to USD 138.7bn, according to UBS, and the number of billionaires increased to 18 in 2024. Billionaires’ wealth in the Middle East & Africa region rose by 17% YoY to USD 3.7trn, with their number rising by 70 to 728.

Saudi Arabia was one of the fastest growing destinations for international tourism recovery last year, according to the World Tourism Barometer: arrivals increased by 61% compared to pre-pandemic levels. The Middle East posted the strongest growth globally, led by Saudi Arabia and Qatar.

Saudi Arabia’s PMI accelerated to 59.0 in November (October: 56.9), the fastest since July 2023, thanks to increases in output (63.8 from 60.2), new orders (63.4 from 62.5) and employment was the second fastest in over a decade – all underscored by robust demand.

Saudi banks’ real estate loans surged by 13.29% YoY to a record SAR 846.48bn in Q3 2024. The share of real estate lending to individuals stood at 78% of the total (or SAR 656.88bn) while total real estate loans accounted for 29.67% of Saudi banks’ loan portfolio.

Saudi Arabia signed double taxation avoidance agreements with Kuwait and Croatia, also aimed at boosting trade and investment.

Global News:

Equity markets gained last week, given rising expectations of a Fed rate cut this month (thanks to the strong non-farm payrolls data). MSCI index for global stocks gained 1.3% with Chinese shares also climbing to 3-week high. Regional markets mirrored the global market trend, also supported by the OPEC+ decision to delay output increase; Saudi Tadawul gained the most. Oil prices fell during the week on projections of excess supply next year (due to weak demand) and despite of the OPEC+ decision. Gold price also posted a weekly decline.

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SOURCE:
Nasser Saidi & Associates