Latest news with #private sector
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Non-oil Private Sector Growth Boosts Saudi Arabia's Economic Expansion
Saudi Arabia's non-oil private sector continued to witness steady improvements in operating conditions during May, mainly driven by an expansion in new business and a recovery in customer demand. This strong performance underscores the resilience of Saudi Arabia's non-oil economy and its capacity to achieve sustainable growth. The Riyad Bank Purchasing Managers' Index (PMI) rose in May, reaching 55.8 points, indicating a strong improvement in business conditions, though still below the peak recorded earlier this year. These positive figures reflect growing confidence in the sector's future, with output expectations reaching an 18-month high, signaling operational readiness for continued growth in the second half of the year. Key findings of the PMI show a notable acceleration in new order growth during May, following a slowdown in April. Companies attributed this increase to stronger demand, robust sales performance, and new marketing initiatives. New orders from abroad also grew, although at the slowest pace in the past seven months. This positive momentum was mirrored in employment levels, as companies increased their workforce to meet rising production requirements, marking one of the fastest hiring rates in over a decade. The workforce growth was accompanied by a surge in purchasing activity, which saw its fastest rise since March 2024, reflecting improved supply chain flexibility. The Kingdom's non-oil private sector is showing strong confidence in the future, with business expectations reaching their highest level since late 2023. Business activity rose in May, driven by increased customer demand and production needs, although the overall rate of growth was the slowest since last September. The construction sector played a key role in this growth, recording the strongest increases in both activity and new business. Despite this strong performance, non-oil firms faced a sharp rise in input costs during May. However, inflation slowed compared to April due to reduced wage pressures. Conversely, selling prices declined in May, driven by a sharp drop in service sector prices, with companies citing competitive pressures impacting their pricing power. Commenting on these results, Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, affirmed that Saudi Arabia's non-oil economy maintained its strong momentum in May. He noted that improving demand, robust economic activity, the launch of new projects, and increased labor productivity all contributed to continued growth, despite the pace slowing to its lowest level since September 2024.
Zawya
2 days ago
- Business
- Zawya
UAE non-oil business sector growth slows to 4-year low
Growth in the UAE's non-oil private sector fell to its lowest level in four years in May although demand remained strong, a business survey showed, signalling the impact of the US trade tariffs on the Gulf region's second biggest economy. The seasonally adjusted S&P Global Purchasing Managers' Index (PMI) slipped to 53.3 last month from 54.0 in April, marking its lowest reading in 44 months. Although the rate of growth trended down from its recent bullish run, demand conditions remained strong, supporting a marked increase in output. "From an overall perspective, the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing,' said David Owen, senior economist at S&P Global Market Intelligence. "Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth." The broadly subdued outlook for activity suggest that firms are gearing up for softer growth, he added. The survey showed a record decrease in input stocks, as firms looked to streamline holdings amid slowing momentum. This came as growth in backlogs, whilst still marked, dropped to a 16-month low. However, employment growth was the strongest seen in exactly one year. Respondents often attributed this to elevated workloads, as rising new orders contributed to another sharp increase in backlogs of work. Firms also reported a modest rise in input costs in May. This marked the slowest rate of inflation in nearly one-and-a-half years. Looking ahead, optimism eased to its lowest since January, with nearly 10% of companies anticipating an expansion in the year ahead. Dubai PMI The Dubai PMI stayed at 52.9 in May, its joint-lowest since the beginning of 2022, but signalled a solid expansion in operating conditions across the non-oil private sector. (Writing by Brinda Darasha; editing by Seban Scaria)
Reuters
3 days ago
- Business
- Reuters
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
ABU DHABI, June 3 (Reuters) - The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. "On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain," Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
Asharq Al-Awsat
27-05-2025
- Business
- Asharq Al-Awsat
Oman's First Quarter Budget Revenue Down Falls as Oil Income Drops
Oman's overall budget revenue fell 7% year-on-year to 2.635 billion Omani rials ($6.85 billion) in the first quarter of 2025 as oil revenue dropped, Oman's state news agency reported on Tuesday, citing data from the finance ministry. Oil revenue for the OPEC+ member was down 13% at 1.468 billion rials in the first three months of the year, from 1.688 billion rials in the first quarter of 2024, with gas revenue down 2% to 436 million riyals, Reuters reported. Public spending rose 4% to 2.771 billion rials from a year earlier, according to the state news agency. The sultanate's public debt eased to 14.3 billion rials from 15.3 billion rials. The finance ministry paid more than 304 million riyals in arrears to the private sector during the quater.
