UAE and Saudi non-oil sectors keep growing in September as PMI readings rise
In short
S&P Global's September purchasing managers' indices signalled continued growth in the non-oil private sectors of the UAE, Saudi Arabia and Kuwait, while Egypt's PMI eased, Forbes Middle East reported. Saudi Arabia's Riyad Bank PMI rose to 55.3 from 53.8 in August, a sixth consecutive month of improvement, and Gulf News said the UAE's reading stayed at a 20-month high. The National reported both economies kept expanding despite the Iran war, now in its seventh month, although Saudi export orders fell for a seventh month.
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Purchasing managers' index surveys pointed to continued growth in the non-oil private sectors of Kuwait, Saudi Arabia and the UAE in September, while Egypt's PMI eased on declining output and new orders, Forbes Middle East reported, citing S&P Global data. [ 2 ]
In Saudi Arabia, the seasonally adjusted Riyad Bank PMI rose to 55.3 in September from 53.8 in August, staying well above the neutral 50 mark that separates growth from contraction, according to The National. The outlet said the rate of improvement in non-oil business activity was the strongest since February and the sixth consecutive month of improving business conditions, driven mainly by a marked rise in new orders, with output growth softening. [ 3 ]
'The acceleration was primarily demand-led. New orders increased at their fastest pace since February,' Naif Alghaith, chief economist at Riyad Bank, said, according to The National. The same report said foreign new orders in Saudi Arabia have now fallen for seven months running, with surveyed companies citing supply chain disruption and shipping delays during the regional conflict. The National said the UAE and Saudi economies had shaken off the effects of the Iran war, now in its seventh month, and that Gulf states including the two countries had faced attacks during the war. [ 3 ]
Gulf News reported that the UAE's non-oil economy held strong, with the PMI staying at a 20-month high, and said the September figures build on the recovery recorded during the third quarter. The outlet said the UAE PMI rose to 52.7 in July after falling to 50.8 in June, when the non-oil economy recorded its weakest improvement in more than five years. [ 4 ]
The documents do not give the UAE's September PMI level. Forbes Middle East describes the UAE reading as rising in September, while Gulf News describes it as staying at a 20-month high; only Gulf News provides specific UAE index figures, for July and June. [ 2 , 4 ]
Why it matters
The PMI surveys are the main monthly gauge of how the Gulf's non-oil private sectors are performing as the region's largest economies try to diversify beyond oil. The National reports that the UAE and Saudi Arabia continued to expand even while the Iran war, now in its seventh month, disrupted supply chains and shipping, but it also says Saudi export orders have fallen for seven months, a sign the conflict is still weighing on external demand.
Key facts
- S&P Global's September PMI readings rose for Kuwait, Saudi Arabia and the UAE, signalling improved conditions in the non-oil private sector, according to Forbes Middle East. [ 2 ]
- Egypt's PMI eased in September on declining output and new orders, Forbes Middle East reported. [ 2 ]
- Saudi Arabia's seasonally adjusted Riyad Bank PMI rose to 55.3 in September from 53.8 in August, above the neutral 50 mark that separates growth from contraction, The National reported. [ 3 ]
- The National said the rate of improvement in Saudi Arabia's non-oil business activity was the strongest since February and the sixth consecutive month of improvement. [ 3 ]
- Naif Alghaith, chief economist at Riyad Bank, said the acceleration was primarily demand-led and that new orders increased at their fastest pace since February. [ 3 ]
- Saudi new orders from foreign customers have fallen for seven straight months, with companies citing supply chain disruption and shipping delays amid the regional conflict, The National reported. [ 3 ]
- Gulf News reported the UAE's non-oil economy held strong in September, with the PMI staying at a 20-month high; it said the UAE PMI rose to 52.7 in July after falling to 50.8 in June, the weakest improvement in more than five years. [ 4 ]
Confirmed by several sources
Still unclear
- The September PMI level for the UAE is not stated in the documents. Gulf News reports only that the UAE reading stayed at a 20-month high and gives July (52.7) and June (50.8) figures, while Forbes Middle East says only that the UAE PMI rose in September.
- How much the Iran war is weighing on non-oil business conditions is not settled in the coverage. The National says the UAE and Saudi economies 'shook off the effects of the Iran war', but the same report says Saudi foreign new orders have dropped for seven months and companies cited shipping delays; no other document addresses the war's impact.
- Saudi Arabia's specific PMI figures and the Riyad Bank commentary come from a single outlet. The 55.3 and 53.8 readings and the Alghaith quotes appear only in The National.
What local media are saying
Timeline, local time
- Forbes Middle East publishes its regional PMI round-up, reporting September rises for Kuwait, Saudi Arabia and the UAE and an easing in Egypt. [ 2 ]
- The National reports Saudi Arabia's PMI at 55.3 and says the UAE and Saudi non-oil sectors maintained their expansion despite the Iran war. [ 3 ]
- Gulf News reports the UAE non-oil economy holding strong, with the PMI staying at a 20-month high. [ 4 ]