EU's Borrell sees Argentina more open to EU-Mercosur trade deal. Argentina, whose new president Javier Milei has said the South American common market Mercosur serves no purpose, now appears to be more willing for the bloc to sign a free trade deal with the European Union, the EU's top diplomat Josep Borrell said. (Reuters)

White House warns Red Sea turmoil could hit US economy. Ship diversions may eventually be felt by American consumers, says White House spokesman. (Freightwaves)

Europe’s inflation is up after months of decline. Could it delay interest rate cuts? Inflation plaguing Europe rose to 2.9% in December, rebounding after seven straight monthly declines as food prices rose and support for high energy bills ended in some countries. The rise in price levels fueled debate over how soon interest rate cuts could be expected from the European Central Bank. (AP)

Israeli minister outlines plans for Gaza after war. Israeli Defense Minister Yoav Gallant has outlined proposals for the future governance of Gaza once the war between Israel and Hamas is over. (BBC)

US employers add a surprisingly strong 216,000 jobs in a sign of continued economic strength. The nation’s employers added a robust 216,000 jobs last month, the latest sign that the American labor market remains resilient even in the face of sharply higher interest rates. (AP)

England flooding: Hundreds of homes evacuated after heavy rain. Hundreds of homes have been devastated by flooding in England following a powerful storm and a week of heavy rainfall. (BBC)

The three men vying to be Taiwan's next president. On Jan. 13, Taiwan will elect a new president in a critical race that could redefine the island's relationship with China. (BBC)

Amid Gaza war, regional escalation draws US deeper into Middle East crisis. As the fighting in Gaza continues to intensify, the U.S. is increasingly becoming more involved—militarily and diplomatically—in three other hotspots in the Middle East, with fears growing that rising tensions could spiral into a much bigger war. (Axios)

Year of the underdog: How ‘outsiders’ upended Latin America’s elections. From Argentina to Guatemala to Ecuador, voters rejected establishment candidates in this year’s presidential races. (Al Jazeera)

Fabric wars: Ghana’s colorful prints face renewed Chinese competition. Cheap China-made African print wax brands have been present in markets on the continent for decades, initially as badly-made replicas, but increasingly, as high-quality alternatives. (Al Jazeera)

Saving the Panama Canal will take years and cost billions, if it’s even possible. The vestiges of an ancient forest tell the story of just how bad things are at the drought-stricken Panama Canal. (Bloomberg)

Maersk pauses transit through Red Sea until further notice after attack on ship. Danish shipping giant said it will pause all transit through the Red Sea and Gulf of Aden until further notice following the attack on its vessel Maersk Hangzhou on Dec. 30. (WSJ)

UAE Non-Oil Sector Hits Four-Year High

Jamilex Gotay, editorial associate

Business activity in the United Arab Emirates’ (UAE) non-oil private sector economy hit its highest level in more than four years in December due to substantial rise in output and new orders.

The S&P Global purchasing managers’ index climbed to 57.4 in December, from 57 in November, its highest point since mid-2019, setting it well above the neutral 50 mark that separates growth from contraction.

The United Arab Emirates' capital, Abu Dhabi, posted third-quarter non-oil gross domestic product (GDP) growth of 7.7%. The emirate registered overall economic growth of 1% in Q3 year on year, according to preliminary estimates released by the Statistics Centre-Abu Dhabi (SCAD) to reach 290.5 billion dirhams ($79.11 billion).

What they're saying: “Lower production and oil prices this year have weighed on overall growth, but Gulf states have all stepped up efforts to diversify their economies and income sources away from hydrocarbons to plan for more sustainable growth in the long term,” reads a Reuters article.

By the numbers: Abu Dhabi registered 2.8% growth in real GDP over the first nine months of 2023 compared to the same period a year prior and 8.6% growth in non-oil activities.

UAE Central Bank has increased its 2024 growth forecast for the country's economy to 5.7%.

“While the country's oil gross domestic product is expected to contract by 3.4% annually this year due to output cuts, ‘as production resumes in 2024,’ oil GDP growth is forecast to rebound to 8.1%, corresponding to an average of 3.2 million barrels per day, the Central Bank said.”

In its latest meeting, the OPEC+ group of oil producers announced voluntary production cuts of 2.2 million barrels per day for the first quarter of 2024. “Unlike previous cuts, this one has been parceled out among the stronger members: Saudi Arabia will cut 500,000 bpd, the UAE 144,000 bpd, Iraq 211,000 bpd, Kuwait 128,000 bpd, and Oman 40,000 bpd. Nigeria, Algeria, Angola and others have effectively been contributing additional cuts for months already,” reads another The National article.

However, while the UAE's non-oil private sector economy has seen significant growth, payment delays and issues in credit collections have been on the rise, indicating potential challenges in cash flow management and customer relationships.

Customers in the United Arab Emirates have averaged 30 days beyond terms, with 75% of credit professionals saying payment delays have increased, per the November FCIB Credit & Collections Survey. The most common causes for payment delays are customer payment policy (75%), unwillingness to pay (50%), supply chain or shipping disputes (50%), cash flow issues (50%) and cultural norms and customs (50%).

What FCIB Credit and Collections Survey respondents are saying:

• “With continued global inflation, war in Ukraine and high interest, you need to know your true legal customer to prevent fraud and keep your A/R secured.”
• “Start early building a relationship with your customer and include your salesperson.”
• “It is important to know customer's payment process to avoid misunderstandings or delays due to administrative issues.”

The December Credit & Collections Survey is now open. It covers Chile, Egypt, Italy and the United States.

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate