DECEMBERASIA BUSINESS OUTLOOK9NEWSROOMNXP, TSMC AFFILIATE TO INVEST $7.8B IN EXPANDING SINGAPORE PLANTThe economy of the UAE is projected to increase from 3.7 percent in 2024 to 4.5 percent in 2025. As per the most recent ICAEW Economic Insight report created by Oxford Economics, growth in the non-energy sector is anticipated to ease slightly from 4.5 percent to 4.3 percent because of capacity limitations in essential sectors.The nation's achievement in drawing investment is clear with its $16 billion in greenfield foreign direct investments, upholding its worldwide leadership in FDI compared to GDP. Tourism persists in fueling growth, as Dubai's visitor arrivals rose by 6.3 percent year-on-year during the initial nine months of 2024.The economies of the GCC are set to more than double their growth rate from 1.9 per cent in 2024 to 4 per cent in 2025. This increase occurs despite the continuation of OPEC+ oil production cuts, placing the GCC in a strong position to greatly exceed global GDP growth, which is expected to rise slightly from 2.7 per cent in 2024 to 2.8 per cent in 2025.The energy sector in the GCC is poised for a significant recovery in 2025, anticipating a growth of 4.2 percent as oil production cuts are progressively reduced. At the same time, the non-energy sectors will continue their strong performance, exhibiting steady growth close to 4 percent in both 2024 and 2025. Regional PMIs continue to be strongly positive, as Saudi Arabia's PMI hits a six-month peak of 56.9, reflecting high business confidence and robust domestic activity. In recognition of the need to diversify chip production in anticipation of rising US-Chinese tensions over technology, NXP Semiconductors and a Taiwan Semiconductor Manufacturing Co (TSMC) affiliate are talking about expanding their US$7.8 billion Singapore joint.Tensions between the US and China escalated this week as Beijing banned the supply of certain vital commodities to the US in retaliation for the Biden administration's additional restrictions on Chinese access to foreign technologies.The NXP chief reaffirmed that his company is growing geographically. According to Executive vice-president, Andy Micallef, the European chipmaker, a major manufacturer of networking and automotive semiconductors, is seeking to expand its supply chain in China, the largest EV and telecom market in the world.Micallef said, "We are continuing to invest in Singapore. We are continuing on phase two of this when we get to 2030. Singapore is a very important site for NXP"Device manufacturers are becoming increasingly concerned that rising tensions in the Taiwan Strait may cause supply disruptions for semiconductors needed for everything from electric cars to smartphones. The majority of chips produced worldwide are still made by Taiwanese companies, primarily TSMC.Due to its closeness to important Asian consumer markets, comparatively low labor costs, and abundance of technological expertise, South-east Asia has become a prominent player in the manufacturing of technology. UAE ECONOMY TO GROW 3.7 PERCENT IN 2024, PROJECTED AT 4.5 PERCENT IN 2025
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