Economy Saudi Arabia’s non-oil private sector hits 6-month high By Chris Hamill-Stewart November 5, 2024, 5:24 PM Alamy via Reuters A metal worker at a factory in Dammam. Saudi Arabia logged increases in sales and employment in October, says S&P Global October’s PMI score rises to 56.9 Strong results for UAE and Kuwait Turkey and Egypt still struggle Business conditions in Saudi Arabia’s non-oil private sector improved at the fastest rate for six months in October, according to S&P Global. Saudi Arabia logged a 56.9 rating in S&P’s Global purchasing managers’ index (PMI), a monthly indicator of operating conditions in the non-oil economy. October beat September’s figure of 56.3 and is well above the 50 mark that separates economic expansion from contraction. It signals a “sharp upturn in operating conditions”, the report said. An increase in sales, which supported expansions in business activity, employment, purchasing activity and stocks, drove October’s positive PMI data. Naif Al Ghaith, chief economist at Riyad Bank, said: “The comprehensive sectoral gains reflect a strong business environment, supported by government initiatives and heightened private sector engagement, aligning with ongoing projects under Vision 2030 that aim to diversify the economy.” The UAE also recorded an improvement in conditions, with the country’s PMI rising to 54.1 from 53.8 in September. About 28 percent of survey respondents in the UAE reported a rise in activity over the month and 4 percent saw a decline. Business sentiment picked up from September’s 18-month low. Saudi Aramco blames lower sales for drop in profit Opinion: FII is a cerebral workout in a dumbed-down age GCC economic data: the latest indicators The UAE’s PMI upturn was supported by demand increases. However, growth in new orders slowed in September to its lowest level since February 2024, contributing to weaker job creation and a drop in selling prices. David Owen, senior economist at S&P Global Market Intelligence, said: “A softening of new business growth in October added to signs that the [UAE’s] non-oil economy is losing strength after a robust growth period in late 2023 and early 2024.” Kuwait’s PMI data came in at 52.7, up from 50.3 in September and the highest the country has recorded in seven months. New business increased markedly in October, with the rate of expansion accelerating sharply to the fastest since May. In Turkey, headline PMI was 45.8 in October, up from 44.3 in September. The country is struggling with inflationary pressures, although S&P points out that these are gradually easing. In Egypt, PMI edged up to 49.0 from 48.8, as higher selling prices dampened demand.
