Qatar’s Non-Energy Private Sector Sees Improvement in Business Conditions
In a positive development, Qatar’s non-energy private sector witnessed an improvement in business conditions in April, with the Purchasing Managers’ Index rising to 52 from 50.6 in March, according to the latest data.
The Qatar Financial Center PMI serves as a crucial indicator of non-energy private sector performance, encompassing new orders, output, employment, suppliers’ delivery times, and stocks of purchases. A reading above 50 indicates sectoral expansion, while below 50 signals contraction.
The most recent PMI survey data compiled by US-based capital market firm S&P Global revealed a significant 1.4-point increase between March and April in the headline figure, marking one of the largest increments seen in the past two years.
Notably, output, new orders, employment, and purchasing activity all saw faster rates of growth compared to March, although price pressures turned slightly negative as input and output prices experienced marginal declines.
Furthermore, the volume of incoming new business in Qatar’s non-energy economy surged at the quickest pace in seven months in April, driven by new customers and high-quality competitive products.
Total activity also experienced a notable uptick in April, reaching its highest rate since September as new projects and firms continued to complete existing workloads.
Moreover, non-energy private sector companies in Qatar displayed a growing optimism for future growth over the next 12 months in April, attributing positive forecasts to marketing campaigns, business development plans, and efficiency drives.
This positive sentiment translated into a sharper rate of hiring growth in April, with employment rising for 14 consecutive months and the rate of job creation surpassing the long-run survey average.
The Qatar PMI indices are based on survey responses from a panel of approximately 450 private sector companies, covering various sectors such as manufacturing, construction, wholesale, retail, and services, reflecting the structure of the non-energy economy based on official national accounts data.
Islamic Banking Assets in Qatar Show Growth
The total value of assets held by Islamic banks operating in Qatar saw a notable 6.4% increase on an annual basis in March 2024, reaching around 563.9 billion Qatari riyals ($154.8 billion), as per newly released statistics.
The monetary bulletin issued by the Qatar Central Bank for March indicated that this figure represents 28% of the total assets of banks in Qatar, totaling approximately 1.99 trillion riyals.
Additionally, the data disclosed that the total value of Islamic banks’ financing in Qatar rose to 389.9 billion riyals, reflecting a 3% increase compared to the same month last year.