Saudi Arabia, UAE Non-Oil Sectors Show August Growth Rising PMI

Saudi Arabia's non-oil private sector demonstrated steady growth in August, with the Riyad Bank Purchasing Managers’ Index (PMI) rising slightly to 56.4 from 56.3 in July, indicating continued expansion driven by improving demand conditions, increased new orders, and employment gains. The sector saw a modest rebound in output growth, the fastest rise in new orders in four months, and a rebound in export sales attributed to enhanced marketing and collaboration within the Gulf Cooperation Council (GCC). Despite easing from earlier highs this year, business confidence improved from a 12-month low, accompanied by increased inventories and rising selling prices influenced by higher input costs and global inflationary pressures. Meanwhile, the UAE’s non-oil sector showed a modest expansion with its PMI at 53.3, reflecting the fastest output growth in six months but weaker sales growth due to competitive pressures and supply chain challenges, leading to reduced input purchases and inventory levels. Wage inflation in the UAE pushed operating costs higher, yet firms maintained improved business confidence and output levels, signaling resilience amid varying demand conditions. Overall, both Saudi Arabia and the UAE's non-oil private sectors exhibited growth in August, though Saudi Arabia's sector showed stronger momentum and more positive outlooks compared to the more mixed signals from the UAE.