Breaking news

Saudi Arabia’s Non-Oil Sector Surges To Its Strongest Growth In Over A Decade

by THEFUTURE.TEAM

February 4, 2025

Saudi Arabia’s non-oil economy experienced its most significant growth in more than 10 years this January, driven by an increase in new orders and dynamic business activity, according to the latest survey released on Tuesday.

Record-Breaking Expansion In Non-Oil Activity

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) jumped to 60.5 in January, up from 58.4 in December. This marks the highest reading since September 2014, signaling continued expansion as any PMI reading above 50 indicates growth.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The surge was mainly fueled by a remarkable spike in new orders, which grew at the fastest pace since June 2011. The New Orders Index rose to 71.1 in January, a significant leap from 65.5 in December. This robust demand was attributed to strong economic conditions and a wave of new infrastructure projects, boosting both domestic and export sales.

Naif Al Ghaith, Chief Economist at Riyad Bank, noted that the growth in export orders complemented domestic demand, particularly from GCC nations, reflecting effective marketing strategies and competitive pricing.

Broad-Based Growth Across Sectors

Saudi Arabia’s non-oil sector saw a significant uptick in activity throughout January 2025, with the expansion spreading across all industries. Businesses were not only ramping up production but also hiring more staff for the ninth consecutive month to help manage increased demand and clear backlogs.

The survey revealed that 35% of companies had increased their input purchases, and delivery times were notably shorter — the most significant decrease in 10 months. With the anticipation of continued demand, firms increased their inventories, bringing stock levels to their second-highest point since 2009.

However, this surge in demand did come with its challenges. Input prices climbed at their second-fastest rate in over four years, driven by both stronger demand and external geopolitical factors. This prompted companies to increase output prices at the fastest rate in a year.

Economic Outlook And Growth Drivers

Saudi Arabia’s economy grew by 1.3% year-on-year in 2024, buoyed by the robust performance of its non-oil sector, as per preliminary data.

The growth was primarily fueled by a 4.3% increase in non-oil activities and a 2.6% rise in government services, according to the General Authority for Statistics (GASTAT). However, the oil sector faced challenges, contracting by 4.5% during the year.

This mixed performance underscores the ongoing efforts of Saudi Arabia to transition from an oil-dependent economy to one with more diverse sources of revenue.

The fourth quarter of 2024 saw a more impressive performance, with real GDP expanding by 4.4% compared to the same period in 2023, marking the highest quarterly growth in two years. This surge was largely driven by non-oil activities, which grew by 4.6%. The oil sector posted a modest growth of 3.4%, while government activities rose by 2.2%.

Saudi Arabia’s ongoing diversification efforts are clearly paying off as the country makes significant strides in reducing its reliance on oil, positioning itself for sustainable economic growth in the years to come.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.