Saudi Arabia's non-oil economy grew at a quicker pace in September as a sharp increase in output and the number of new orders drove business activity.
The headline Riyad Bank purchasing managers' index reading climbed to 57.2 in September, up from 56.6 in August, rising further above the neutral 50-point mark that separates growth from contraction.
The jump from August’s 11-month low reading underpins a quicker upturn in the health of the kingdom's non-oil private sector, as the headline reading topped its long-run average of 56.9.
“The non-oil economy continues its growth despite the challenges arising from the current monetary policy conditions,” said Naif Al-Ghaith, chief economist at Riyad Bank.
“Our view is that non-oil GDP [gross domestic product] will continue to support growth and remain above 5.5 per cent for 2023, supported by the ongoing reforms under the vision 2030.”
The quickening of the pace of business activity growth at the end of the third quarter was underpinned by a rise in output. More than a quarter of businesses surveyed reported an increase in output levels in September.
Supporting activity growth was another marked increase in new business intakes in September, with the upturn sharpening to the strongest since June.
“Anecdotal evidence signalled that improving market conditions was a key catalyst to rising client orders,” according to the survey.
Saudi Arabia's economy grew by 1.2 per cent in the second quarter of this year, a slightly faster pace of growth than the initial estimates, driven by a sharp expansion in the non-oil sector.
The kingdom’s GDP at current prices reached 970 billion Saudi riyals ($258.66 billion) in the three months to the end of June, according to General Authority for Statistics (Gastat) data.
The non-oil sector grew by 6.1 per cent on an annual basis, beating the authority's initial estimate of a 5.5 per cent expansion in the three-month period to the end of June.
Saudi Arabia’s economy grew by 8.7 per cent last year, the highest annual growth rate among the world's 20 biggest economies, driven by a rise in oil prices and the strong performance of its non-oil private sector.
The kingdom, Opec’s biggest oil producer, has carried its growth momentum forward, albeit at a slower pace.
Earlier this year, Saudi Arabia received the biggest downgrade in economic growth forecast among the G20 economies, according to an International Monetary Fund forecast.
However, non-oil growth in the kingdom is expected to remain close to 5 per cent in 2023, spurred by strong domestic demand despite lower overall growth caused by additional oil production cuts, the IMF said in the September.
Earlier this week, Saudi Arabia revised its growth forecast for 2023 and said it expected to record a budget deficit this year as it boosts spending to achieve its diversification ambitions.
The kingdom expects real GDP to grow by 0.03 per cent this year, “due to a voluntary reduction in oil production”, compared with a previous growth estimate of 3.1 per cent, a preliminary budget statement from the Ministry of Finance showed on Saturday.
Non-oil growth this year is projected to reach 5.9 per cent, led by the trade, hospitality and tourism sectors, it said.
Saudi Arabia is now forecasting a deficit of 82 billion riyals this year, compared with its previous estimate of a surplus of 16 billion riyals.
For this year, the country is projecting revenue of 1.18 trillion riyals and spending of 1.26 trillion riyals.
However, despite forecasts of an overall slower economic growth in the kingdom this year, companies in September were optimistic that improving market conditions and rising sales would continue to support an expansion in business activity.
Meanwhile in Egypt, the non-oil private sector economy continued to soften in September as businesses struggled with supply chain challenges and rapid inflation at the end of the third quarter.
Work backlogs rose to unprecedented levels as output contracted sharply. New orders also fell as rising prices continued to hit client spending and confidence.
The country's headline S&P Global Egypt PMI dropped to 48.7 in September, down from 49.2 in August.
“Egyptian non-oil companies faced unprecedented pressure on their operating capacity in September despite sales continuing to fall, as the PMI Backlogs of Work Index signalled a record pile-up of incomplete orders,” said David Owen, senior economist at S&P Global Market Intelligence.
“Firms were reluctant to draw down inventories as the outlook for supply and prices remains challenging, resulting in output levels dropping sharply and to a greater degree than new orders.”
Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.
GRAN%20TURISMO
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Bombshell
Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Company profile
Name: Fruitful Day
Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie
Based: Dubai, UAE
Founded: 2015
Number of employees: 30
Sector: F&B
Funding so far: Dh3 million
Future funding plans: None at present
Future markets: Saudi Arabia, potentially Kuwait and other GCC countries
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
RESULTS
Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO
Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke
Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke
Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO
Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision
Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision
Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO
Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)
Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)
Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision
Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke
Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO
Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision
Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision
More from Neighbourhood Watch:
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
MATCH INFO
Liverpool v Manchester City, Sunday, 8.30pm UAE
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
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
