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Coronavirus recovery: Saudi Arabia, UAE, Egypt business conditions decline slows

Business conditions in Saudi Arabia, the UAE, and Egypt declined in May at a slower pace than in April, suggesting the worst of the coronavirus downturn may be over, according to data from IHS Markit.The coronavirus pandemic prompted governments to implement strict lockdown measures to combat the spread of the virus, keeping consumers at home and businesses shut. While economists have warned that the virus will likely cause the worst global recession in nearly a century, this IHS survey suggests that the worst impact may already be over in three of the Middle East’s most important economies.“Business conditions in Saudi Arabia deteriorated again during May, but the speed of the downturn moderated from April’s survey-record pace … Some firms noted that an easing of lockdown measures had helped mitigate the downturn in May, alongside efforts to boost online business operations,” said Tim Moore, economics director at IHS Markit in a research note.For all the latest headlines follow our Google News channel online or via the appMoore’s statement drew upon data from the HIS Markit’s Purchasing Manager’s Index survey, which the company uses to gauge how the non-oil private sector is performing in each country. A figure of below 50 indicates that the sector contracted, while above 50 indicates expansion.Saudi Arabia’s May PMI was 48.1, a significant rise from April’s record low 44.4, but still contracting as it falls under 50. Slower declines in output, new work and employment caused the increase, IHS Markit said.However, Moore noted that the economic impact of the coronavirus crisis was not over for the Kingdom. “There were still widespread reports that business closures and constrained operating capacity had held back overall activity across the non-oil private sector,” he said.Meanwhile, the UAE’s PMI rose to 46.7 in May from 44.1 in April, but sentiment towards future output dipped to the joint-lowest on record as businesses voiced concern about the long-term impact of the coronavirus on the economy.“Lockdown measures worldwide have notably reduced exports, as well as limiting input supply. However, May data suggested that these impacts are lessening as some countries move to lighter measures. Export sales in the UAE fell again, but at a softer rate, while deliveries were helped by the lifting of travel restrictions,” said David Owen, an economist at IHS Markit.Egypt’s PMI rose from a record low of 29.7 in April to 40.7 in May, but still indicating a fall in business conditions, the country’s 10th month in a row of falling conditions, and also the second worst recording after April on record.“The remaining solace for Egyptian firms is that overall cost burdens eased for the first time in the series history, as wage cuts coupled with only a marginal rise in purchase prices in May. This could be important as firms look to maintain low output prices for when the economy recovers, with the market environment likely to be challenging,” Owen said.“Sentiment was still positive, though concerns arose that the US/China relationship is worsening, which could affect any rebound in global demand,” he added.Read more:Abu Dhabi’s economy to contract by 7.5 pct in 2020 due to coronavirus, oil: S&PCoronavirus: Saudi economy can deal with budget deficit, revenue decline, says Min.Coronavirus ‘Great Lockdown’ likely to cause worst recession in a century: IMF
Source: Al Arabiya
Full Article: Coronavirus recovery: Saudi Arabia, UAE, Egypt business conditions decline slows

UAE says GNA has refused ceasefire in Libya, rejects ‘false accusations’ in UN letter

The UAE has accused Libya's UN-recognized Government of National Accord (GNA) and its Turkish backers of refusing to accept a ceasefire in the country, and rejected GNA accusations that Abu Dhabi violated a UN arms embargo by sending arms to the GNA’s rival the Libyan National Army (LNA).On May 13, GNA Foreign Minister Mohamed Taha Siala delivered a letter to the UN Security Council, in which he said that the UN should “take a stand” against LNA leader Gen. Khalifa Haftar, whose forces have been fighting against the GNA outside Tripoli since April. The GNA subsequently accused the UAE of supplying arms to the LNA in contravention of the UN arms embargo on the country.For all the latest headlines follow our Google News channel online or via the appThe UAE’s Ambassador to the UN Lana Nusseibeh formally rejected these “false accusations” in a letter to the UN on Monday, in which she also outlined how the GNA and Turkey had refused to halt fighting in Libya.“The United Arab Emirates categorically rejects, as false and unfounded, any allegation that the United Arab Emirates has not complied with the Security Council’s sanctions measures on Libya,” wrote Nusseibeh.“The Permanent Representative of Libya’s regrettable and unfounded allegations are refuted by the United Arab Emirates’ clear and consistent position on the conflict in Libya, which the United Arab Emirates has repeatedly shared with the United Nations and the international community,” she said.Read more:Rival sides in Libya agree return to ceasefire talks, says UN missionTurkey sends mercenaries, weapons to Libya’s GNA daily: LNA GeneralLibyan National Army captures town as Turkey sends more Syrians to Libya: ReportUAE: GNA position ‘dangerous and irresponsible’Nusseibeh also repeated the UAE’s call for a ceasefire in Libya, to which she said that the GNA had refused to agree.“Of greatest concern to my Government is that instead of responding to the multitude of calls for the Libyan parties to the conflict to cease hostilities, including those made by the United Arab Emirates, the other parties to the Joint Declaration, and the Secretary-General, the Permanent Representative of Libya’s statement on 19 May 2020 suggests that the Government of National Accord has no intention to cease its military activities and to reengage in a peaceful political process,” she said.Nusseibeh described the GNA’s position as “dangerous and irresponsible,” especially due to the ongoing threat from the coronavirus pandemic in the war-torn country.However, the United Nations mission to Libya said late on Monday that the two sides had agreed to restart ceasefire talks. The UN-recognized GNA is based in Tripoli and has been accused of relying on support from extremist militias. It is backed by Turkey, who has allegedly sent thousands of Syrian mercenaries to fight against the LNA, which has recently captured ground around Tripoli.Read more: Libyan health facilities under attack as coronavirus threat looms
Source: Al Arabiya
Full Article: UAE says GNA has refused ceasefire in Libya, rejects ‘false accusations’ in UN letter

Coronavirus: Greece suspends Qatar flights after 12 travelers test positive

Greece on Tuesday suspended flights to and from Qatar after 12 individuals on a plane from Doha tested positive for the new coronavirus.The individuals were on a flight carrying 91 people from Doha to Athens that landed on Monday. Tests were carried out for the novel coronavirus and the passengers were taken to a quarantine hotel, authorities said.Read the latest updates in our dedicated coronavirus section.Those who tested positive will be in quarantine for 14 days, and those who tested negative will remain in quarantine for seven days, the civil protection ministry said.Those who tested positive include nine people from Pakistan with Greek residency papers, two Greeks travelling from Australia and a member of a Greek-Japanese family. The suspension will be in place until June 15.For all the latest headlines follow our Google News channel online or via the app.Greece has reported a low number of COVID-19 cases compared to many other European countries and began a gradual easing of a weeks-long lockdown on May 4. By Tuesday, it had reported 2,937 cases, and 179 deaths.Read more:Greece to open to tourists from 29 countries in JuneQatar reports 1,826 new coronavirus cases, total: 60,259Air travel recovery could take three years, say Emirates, Etihad
Source: Al Arabiya
Full Article: Coronavirus: Greece suspends Qatar flights after 12 travelers test positive