Business activity in Saudi Arabia's non-oil private sector economy continued to improve in October, driven by a sharp rise in output and new orders as business optimism grew, despite global macroeconomic headwinds.
The Riyadh Bank Saudi Arabia purchasing manager’s index climbed to 57.2 in October, up from 56.6 in September, underpinning the robustness of the country's non-oil private sector economy , which is still in expansion mode for the 26th successive month.
The October PMI level was the second highest this year, only slightly below that recorded in August.
A reading above the neutral level of 50 indicates growth while one below it points to a contraction.
“Business activity and new orders rose sharply again, with firms seeing client demand strengthen at a robust rate,” said Naif Al-Ghaith, chief economist at Riyadh Bank.
“This was helped by a softening of price pressures; input costs rose at the slowest pace since February, which translated into only a modest uptick in selling charges.”
Output and new orders, the two largest components of the headline PMI index, expanded significantly both in terms of activity and sales at the beginning of the fourth quarter.
Businesses surveyed said improving market conditions drove the increase in new work, while ongoing projects also supported increased output volumes.
Sales growth was supported by rising demand from foreign markets in October, as new export orders climbed at the sharpest rate in almost a year.
The upturn was "broadly aligned with the trends seen since the survey began in August 2009", Riyadh Bank said.
Business recorded growth across sectors in the latest survey period, with output expansion in manufacturing, construction, wholesale and retail and services sectors. Goods producers recorded the strongest upturn in October.
Employment in the kingdom's non-oil economy rose slightly, while inflationary pressures softened notably in October, with companies reporting the slowest rise in input costs for eight months.
Only 4 per cent of respondents noted higher expenses since September, as wage costs were broadly stable after seven consecutive months of a rise in inflation. Output charges subsequently rose only modestly, with upticks led by wholesale and retail and services companies.
Saudi Arabia's economy bounced back strongly from the pandemic-driven slowdown last year. The economic momentum has picked up pace this year driven by growth in the oil and on-oil sectors.
The kingdom's economy expanded 8.6 per cent in the third quarter of 2022, as higher oil prices and government reforms propelled growth, the General Authority for Statistics (Gastat) said in its flash estimates report this week.
Oil activities grew 14.5 per cent in three months to the end of September, higher than 9.3 per cent recorded a year earlier, Gastat said.
Non-oil activities grew by 5.6 per cent year on year, down from 6.3 per cent growth in the third quarter of 2021.
The kingdom has now posted six straight quarters of economic expansion after the Covid-19 pandemic stalled activities. However, third-quarter growth was lower than the 12.2 per cent the economy posted in the previous three-month period.
International Monetary Fund managing director Kristalina Georgieva described the kingdom as a “bright spot amidst the global turmoil” at the meeting of the financial and economic co-operation committee of the GCC last month.
Businesses also expect operating conditions in the kingdom's non-oil private sector economy to remain robust over the next 12 months as economic momentum continues.
"Saudi Arabian non-oil businesses signalled a strong degree of confidence in future economic conditions in October," Mr Al-Ghaith said.
"The outlook for the next 12 months rose to its highest level since the beginning of 2021, as firms suggested that the current robust level of growth is likely to continue."
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
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The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
Sholto Byrnes on Myanmar politics
Brief scores:
Juventus 3
Dybala 6', Bonucci 17', Ronaldo 63'
Frosinone 0
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
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- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The biog:
Favourite book: The Leader Who Had No Title by Robin Sharma
Pet Peeve: Racism
Proudest moment: Graduating from Sorbonne
What puts her off: Dishonesty in all its forms
Happiest period in her life: The beginning of her 30s
Favourite movie: "I have two. The Pursuit of Happiness and Homeless to Harvard"
Role model: Everyone. A child can be my role model
Slogan: The queen of peace, love and positive energy
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
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About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
WORLD CUP SEMI-FINALS
England v New Zealand
(Saturday, 12pm UAE)
Wales v South Africa
(Sunday, 12pm, UAE)
LUKA CHUPPI
Director: Laxman Utekar
Producer: Maddock Films, Jio Cinema
Cast: Kartik Aaryan, Kriti Sanon, Pankaj Tripathi, Vinay Pathak, Aparshakti Khurana
Rating: 3/5
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ferrari 12Cilindri specs
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Global state-owned investor ranking by size
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Canada
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South Korea
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
