Saudi Arabia’s Non-Oil Private Sector Continues to Grow
In June, Saudi Arabia’s non-oil private sector saw robust growth driven by increased demand, higher output levels, and a rise in employment, according to a report. The latest S&P Global Purchasing Managers’ Index showed that the Riyad Bank Saudi Arabia PMI stabilized at 55 from 56.4 in May, marking the lowest reading since January 2022.
Positive Outlook for Saudi Arabia’s Non-Oil GDP
Despite a slowdown in new orders, non-oil businesses in Saudi Arabia reported a substantial rise in output, positioning the Kingdom as the region’s leader in expansion figures. Companies boosted their production levels to support ongoing sales and projects, reflecting a positive business environment. The second-quarter growth figures indicate a positive outlook for Saudi Arabia’s non-oil gross domestic product, with expected gains exceeding 3 percent.
Saudi Arabia’s Economic Diversification Efforts
High output levels, stable supply chains, and moderate job creation point toward a resilient and expanding non-oil economy in Saudi Arabia. The country is actively diversifying its economy under Vision 2030, attracting global investments in technology and tourism through initiatives like NEOM. Additionally, efforts to reduce oil dependence through financial reforms and investments in renewable energy are complemented by measures to support SMEs and enhance education, preparing the workforce for new economic sectors.
UAE’s Non-Oil Private Sector Growth
In the UAE, the non-oil private sector continued to grow in June, although the rate of expansion slowed. The S&P Global UAE PMI fell to 54.6 from 55.3 in May, the lowest point in 16 months. Despite challenges with rising input prices, businesses in the UAE saw a marked increase in new work and export volumes.
Qatar’s Significant Growth in Non-Energy Private Sector
Qatar’s non-energy private sector witnessed significant growth in June, marking the fastest expansion in nearly two years. The PMI reached a 23-month high, driven by increased activity and a surge in new business. Output increased, new incoming work expanded, and employment growth continued, reflecting a positive outlook for Qatar’s non-energy private sector.
Kuwait’s Solid Growth in Non-Oil Private Sector
Kuwait’s non-oil private sector displayed solid growth in June, with the S&P Global Kuwait PMI at 51.6. Despite facing challenges with input cost inflation, businesses in Kuwait saw continued improvement in business conditions. The country has been actively working to diversify its economy through initiatives like the Kuwait National Development Plan and infrastructure projects.
Global Overview of Non-Manufacturing Sectors
In June, the US PMI for the non-manufacturing sector was at 51.6, indicating moderate growth. China’s Caixin Services PMI stood at 51.2, while Japan’s services PMI was at 49.4. These comparisons highlight the Gulf region’s relatively strong performance, particularly Saudi Arabia’s leading position with a PMI of 55.