Saudi Arabia, UAE could be slowly ‘de-anchoring’ from oil price movements, data suggests

Saudi Arabia, UAE could be slowly ‘de-anchoring’ from oil price movements, data suggests

DUBAI, United Arab Emirates — Business activity for major Gulf economies Saudi Arabia and the United Arab Emirates is on the up, with clear positive outlooks for non-oil growth as the region recovers from the effects of the coronavirus pandemic and the consequent crash in oil prices early last year. and the UAE saw the fastest rise in business activity and new orders in nearly two and a half years. For Saudi Arabia, the non-oil private sector's output also grew at the fastest rate since the end of 2017. For Ehsan Khoman, head of MENA research and strategy at MUFG, this is a sign of significant change in the region's economies — and a potential signal that some oil producers may be developing more resilience to crude price volatility.  "There is a real sense of de-anchoring from oil price movements," Khoman told CNBC Wednesday, "despite oil prices being at seven-year highs which has historically meant a relaxation of fiscal consolidation measures." He described the conventional practice of using high government spending as the driver of growth as "the model of the past," adding that "corporate activity is firming." A combination of elements are spurring recovery across the region —