DUBAI: Demand for Abu Dhabi hotels rose in October, propped by the three-day World Skills competition held during the month, preliminary data from hotel industry tracker STR showed.
The arrival of more than 10,000 international visitors, 1,300 competitors and 100,000 visitors from the UAE for the World Skills Competition, held from October 15 to 18, pushed hotel room demand by 13.2 percent, STR said, as against room supply going up by only 0.5 percent.
“Occupancy was above 90% three times during the event, while ADR [Average daily rate] was more than Dh500 each night,” STR said in its preliminary report.
Average occupancy for the month was pegged at 80.9 percent, with average daily room rate up 2.3 percent to Dh465.58 and while revenue per available room rising 15.3 percent to Dh376.88.
STR will release the full October results later this month.
Indian tourists continue to be the main international source market for Abu Dhabi’s hotels, with more than 33,000 guests checking into the emirate in September, according to the Department of Culture and Tourism – Abu Dhabi.
Chinese tourists meanwhile came in second, with more than 28,000 visitors from the Asian country visiting Abu Dhabi’s three regions: Al Dhafra, Al Ain and Abu Dhabi city. The UAE has allowed Chinese visitors to get visas on arrival starting this year.
The emirate welcomed 4.4 million guests in 2016, and is on track to exceed that number this year, the Abu Dhabi tourism agency said.
Demand for Abu Dhabi hotels rise in October
Demand for Abu Dhabi hotels rise in October
GCC bank’s profitability to remain strong in 2024 due to delay in US Fed’s interest rate cuts
RIYADH: A delay in interest rate cuts by the US Federal Reserve will see Gulf Cooperation Council banks’ profitability remain strong in 2024, according to S&P Global Ratings.
This comes as most GCC central banks typically mirror the Fed’s rate movements to preserve their currency pegs.
In a statement, the US credit rating agency revealed that it also expects asset quality to remain robust despite the prolonged high interest rates, thanks to supportive economies, contained leverage, and a high level of precautionary reserves.
“We anticipate a slight deterioration in profitability in 2025, as the Fed could start cutting rates in December 2024, and most GCC central banks are likely to follow suit to preserve their currency pegs,” the statement said.
“However, we believe that several factors will mitigate the overall effect,” it added.
Moreover, S&P disclosed that every 100-basis point drop in rates cuts an average of around 9 percent off the region’s banks’ bottom lines.
This is based on the GCC banks’ December 2023 disclosures and assumes a fixed balance sheet and a parallel shift in the yield curve.
Pakistan shares hit fresh record on rate cut hopes, IMF talks
- Pakistan last month completed a short-term, $3 billion IMF program, seeking fresh, longer-term bailout
- IMF mission is in Pakistan to discuss financial year 2025 budget, policies, reforms under potential new program
Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, on hopes that easing inflation could pave the way for interest rate cuts as early as June.
Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan program added to the bullish sentiment.
The index was trading at 75,013 points at 0531 GMT, up 0.7 percent, after hitting an intraday high of 75,115. It has surged 80 percent over the past year, and it is up 16.1 percent year-to-date after an IMF rescue last summer helped the government avert a debt default.
On Monday, the index closed at a record of 73,822, up 1 percent.
Mohammed Sohail, CEO of Topline Securities, said Wednesday’s gains were fueled by foreign fund buying.
On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6 percent on Wednesday, outperforming the benchmark index.
“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail.
The market is picking up steam due to an anticipated decline in inflation to 13.5 percent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.
Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.
Pakistan last month completed a short-term, $3 billion IMF program, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.
Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.
Global conference in Riyadh spotlights procurement and supply chain challenges
RIYADH: Key issues concerning procurement and supply chains will take center stage at a global conference in the Saudi capital, featuring over 35 international speakers.
The upcoming CIPS MENA Conference and Excellence in Procurement Awards, slated to be hosted by the Government Expenditure and Projects Efficiency Authority on May 16 at the Hilton Riyadh Hotel and Residences, reflects the Kingdom’s position as a hub of expertise in procurement and supply chains, according to the Saudi Press Agency.
The agenda will address critical topics, including building sustainable supply chains, enhancing local content, and promoting industry localization. It will also tackle current supply chain challenges and discuss the digital transformation in procurement and corruption in public procurement.
The conference will also focus on building partnerships between organizations in the private sector and government agencies, targeting specialists in the field of procurement and supply chains in the public and the private sectors, decision-makers in the field, and procurement technical systems companies.
Oil Updates – prices rise on US inventories drawdown expectations, CPI focus
SINGAPORE: Oil prices rose on Wednesday on expectations for higher demand as the US dollar weakened and a report showed US crude and gasoline inventories fell while the release of inflation data may point to a more supportive economic outlook, according to Reuters.
Brent crude futures were up 51 cents, or 0.6 percent, at $82.89 a barrel at 9:30 a.m. Saudi time. US West Texas Intermediate crude futures rose 55 cents, or 0.7 percent, to $78.57 a barrel.
US crude oil inventories fell 3.104 million barrels in the week ended May 10, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.269 million barrels and distillates rose by 673,000 barrels.
US government inventory data is due later on Wednesday and are likely to also show a drop in crude stockpiles as refineries increase their runs to meet increased fuel demand heading into the peak summer driving season.
“Expectations of another drawdown in US oil inventories should support oil prices,” ANZ Research said in a note.
US consumer price index data is also due on Wednesday and should give a clearer indication whether the Federal Reserve may cut interest rates later this year, which could spur the economy and boost fuel demand.
Oil prices also found support from a softer US dollar and stimulus measures from China, said independent market analyst Tina Teng, with a weaker greenback making dollar-denominated oil cheaper for investors holding other currencies.
Teng was referring to China’s plans to raise 1 trillion yuan ($138.39 billion) in long-term special treasury bonds this week to raise funds to stimulate key sectors of its flagging economy, which is the world’s largest oil importer.
“The US CPI and China’s economic data are key to driving oil prices for the rest of the week,” she added. China will release economic activity data on Friday.
Prices were also supported by concerns around Canadian oil supply, a key exporter to the US
A large wildfire is approaching Fort McMurray, the hub for Canada’s oil sands industry that produces 3.3 million barrels per day of crude, or two-thirds of the country’s total output.
Saudi inflation steady at 1.6% in April, driven by housing prices
RIYADH: Saudi Arabia’s inflation remained steady at 1.6 percent in April for the second month in a row, driven by changes in housing prices.
The latest report from the General Authority for Statistics indicated that the Kingdom’s Consumer Price Index experienced a marginal increase of 0.3 percent in April compared to March.
The monthly inflation index was impacted by a 0.4 percent increase in the prices of housing, water, electricity, gas, and other fuels, which was primarily due to a 0.4 percent rise in actual housing rents and prices.
Additionally, the prices of personal goods and services increased by 1.2 percent. Similarly, food and beverage prices rose by 0.2 percent, clothing and footwear by 0.6 percent, and recreation and culture by 0.7 percent.
Conversely, prices in the furnishing and home equipment category declined by 0.5 percent, driven by a 0.5 percent decrease in the prices of furniture, carpets, and flooring.
However, the prices of services such as education, communications, health, and tobacco products did not show any significant change in April.
Annual inflation rises
However, on a yearly basis, the Kingdom’s CPI increased by 1.6 percent in April compared to the same period last year.
This rise is primarily attributed to a 9.4 percent increase in villa rents and a 0.8 percent rise in food and beverage prices.
Prices in restaurants and hotels also rose by 2 percent, driven by a 1.8 percent increase in food service prices. Meanwhile, the education sector witnessed a 1.1 percent increase, driven by a 4.1 percent rise in fees for intermediate and secondary education.
In contrast, prices for furnishings and home equipment decreased by 3.9 percent, influenced by a 6.0 percent decline in the prices of furniture, carpets, and flooring.
Similarly, prices in clothing and footwear decreased by 4.2 percent, influenced by a 6.6 percent decline in ready-made clothing prices. Transportation prices also decreased by 1.6 percent, affected by a 2.9 percent decrease in vehicle purchase prices.
According to GASTAT, rental prices were the main driver of inflation in April compared to the corresponding period in 2023.
“Actual housing rents increased by 10.4 percent in April 2024, influenced by the increase in villa rents by 9.4 percent. The increase in this category had a significant impact on maintaining the annual inflation rate for April 2024, given the weight this group represents (21.0 percent),” stated the GASTAT report.
Wholesale price index
In another report, GASTAT noted that Saudi Arabia’s wholesale price index rose by 3.4 percent in April compared to the same month in 2023.
This rise in the WPI was driven by a 14.5 percent increase in the prices of basic chemicals and a 12 percent jump in the prices of refined petroleum products.
In the fourth month of the year, prices for food products, beverages, tobacco, and textiles increased by 2.4 percent. This was primarily due to a 10.1 percent increase in the prices of leather, leather products, and footwear, and a 5 percent rise in the prices of grain mills, starch, and other food products.
Additionally, prices for agricultural and fishery products rose by 0.2 percent, driven by a 2.0 percent increase in prices for live animals and animal products.
Conversely, prices for ores and minerals dropped by 2.2 percent, largely due to a 2.2 percent decline in the prices of stone and sand.
Additionally, prices for metal products, machinery, and equipment fell by 0.6 percent. Significant decreases were observed in the prices of radio, television, and communication equipment by 6.7 percent, and office, accounting, and computing machinery by 2.7 percent.
The WPI decreased by 0.4 percent in April compared to March, primarily due to a 0.9 percent drop in the prices of other transportable goods, driven by an 8.0 percent decrease in the prices of basic chemicals.
Prices for agriculture and fishery products fell by 0.1 percent, influenced by a 0.4 percent decline in the prices of live animals and animal products. Ores and minerals saw a 0.1 percent decrease, mainly due to a 0.1 percent drop in the prices of stone and sand.
Conversely, prices for food products, beverages, tobacco, and textiles rose by 0.1 percent, due to a 0.2 percent increase in prices for meat, fish, fruit, vegetables, oils, and fats, along with a 0.1 percent rise in grain mills, starch, and other food product prices.
Additionally, prices for metal products, machinery, and equipment increased by 0.1 percent, driven by a 0.8 percent rise in the prices of basic metals.
Average prices up
In a separate analysis, GASTAT noted that in April, Abu Sorry Egyptian orange and Turkish plums saw the most significant upticks compared to the prior month, with increases of 18.09 percent and 12.82 percent, respectively.
Additionally, Pakistani mandarin and Lebanese grapes also experienced notable increases, rising by 9.11 percent and 5.88 percent, respectively.
Conversely, the goods and services showing substantial percentage drops in April, compared to March, were local and imported onions, experiencing decreases of 12.15 percent and 9.13 percent, respectively.
Additionally, local cucumbers and yellow apples also saw notable declines, with decreases of 6.35 percent and 5.40 percent, respectively.
