Emirates NBD Financial Performance and Market Update slide image

Emirates NBD Financial Performance and Market Update

Appendix Strategy Financial & Operating Performance | Emirates NBD Profile Operating Environment M bpd UAE Economic Update Highlights • Non-oil growth in the UAE appears to have accelerated in H1 2017, based on PMI survey data. However, OPEC's decision to extend output cuts through Q1 2018 has led us to revise down our projections for oil sector growth this year and next As a result, we have downgraded our 2017 growth forecast to 2.0% from 3.4% previously. We expect Dubai to grow at a faster rate than Abu Dhabi as it won't be as affected by lower oil output The Emirates NBD Purchasing Managers' Index for the UAE rose to 57.3 in August from 56.0 in July, signalling the sharpest improvement in business conditions since February 2015. Jordan Lebanon Tunisia Oil Price and UAE oil production 3.2 3.0 2.8 2.6 2.4 2.2 2.0 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 UAE Oil Production (Ihs) Source: Bloomberg, Emirates NBD Research ICE Brent (rhs) Jul-16 Oct-16 Jan-17 Apr-17 62.0 125 100 60.0 75 75 50 50 USD per barrel 58.0 56.0 25 54.0 Real GDP growth forecasts Emirates NBD 2013 2014 2015 2016 2017F 2018F S. Arabia 2.7 3.7 4.1 1.7 0.5 2.5 UAE 4.7 3.3 3.8 3.0 2.0 3.4 Qatar 4.0 3.5 3.3 2.0 2.5 3.5 Kuwait 1.1 0.5 1.8 2.1 -1.0 2.2 Oman 4.4 2.5 5.7 3.7 1.0 2.3 Bahrain 5.4 4.4 2.9 3.0 2.2 2.4 GCC (average) 3.3 3.2 3.8 2.3 1.1 2.8 Egypt 2.1 2.9 4.4 4.3 3.5 4.9 2.8 3.1 2.4 2.0 2.8 3.0 3.0 1.8 1.5 2.4 3.1 3.3 2.9 2.3 0.8 1.1 2.8 4.0 Morocco MENA (average) 4.4 2.6 4.5 1.0 4.7 4.8 2.8 2.7 3.8 3.1 3.7 4.4 Source: Bloomberg, Emirates NBD Research UAE PMI - Non oil private sector activity 0 52.0 50.0 Jan 15 Jun 15 Nov 15 Apr 16 Sep 16 Feb 17 Jul 17 Source: Markit / Emirates NBD 3
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