Business activity in Saudi Arabia's non-oil private sector economy remained robust in November, driven by a sharp rise in client orders and output amid continued economic momentum in the kingdom.
The headline Riyad Bank purchasing managers' index reading dropped to 57.5 last month, from 58.4 in October, but remained well above the 50-point neutral mark that separates expansion from contraction.
The kingdom's non-oil private sector economy expanded despite an increase in raw material prices that drove up selling rates in November.
However, demand remained strong and new business inflows rose at their sharpest rate since June as the businesses surveyed cited an increase in new customers and greater investment spending.
“Firms anticipate a continuous increase in output, fuelled by a robust inflow of new projects,” Riyad Bank chief economist Naif Al-Ghaith said.
“Manufacturers, in particular, are highly optimistic about the next 12 months as they anticipate a favourable business climate.”
The wholesale and retail sectors also showed signs of strong expansion in November, in line with the overall positive sentiment in the kingdom’s non-oil private sector economy, Mr Al Ghaith said.
“This bodes well for Saudi Arabia's economic growth and suggests a favourable environment for businesses in various industries.”
New orders and output, the two largest contributors to the headline index, rose markedly in November, with new orders posting the highest reading in five months.
New business intake jumped considerably in November as companies surveyed cited improvements in market conditions, as well as a rise in customer numbers.
The uplift came despite a dip in foreign demand, as the latest data showed new export orders declining for the third time in four months.
Meanwhile, cost inflation across the kingdom's non-oil economy also climbed in November.
Input costs rose at their quickest pace since June 2022, led by increased purchase prices, especially in the construction sector.
Increased cost burdens led non-oil companies to lift selling charges in November for the first time in three months, according to the survey.
However, businesses remained optimistic about the growth prospects for the kingdom's non-oil private sector in the coming 12 months.
The outlook improved markedly in November to its strongest level since June amid “broad hopes that new business inflows will remain robust and drive higher activity”.
Saudi Arabia’s economy, which grew by 8.7 per cent last year, the highest annual growth rate among the world's 20 biggest economies, is expected to expand by 0.8 per cent in 2023, according to the International Monetary Fund.
The kingdom, which benefitted from the rally in crude prices last year amid the Ukraine war, has cut oil output in an attempt to stabilise oil market.
Its economy contracted by 4.5 per cent annually in the third quarter, dragged down by oil production caps.
However, the non-oil economy expanded by 3.9 per cent in the three months to end of September, according to the General Authority for Statistics data.
The IMF expects the kingdom's non-oil economic growth to remain close to 5 per cent in 2023, spurred by strong domestic demand.
Saudi Arabia projects even stronger growth for its non-oil economy, at 5.9 per cent this year, driven by the trade, hospitality and tourism sectors, the Ministry of Finance said in a preliminary budget statement in October.
Meanwhile, Egypt's non-oil private sector economy continued to soften in November as output projections dropped to a record low amid inflationary pressures.
Output and new orders both continued to decline last month, leading to the worst confidence levels among Egyptian non-oil private sector companies in more than 11 years.
The country's headline S&P Global Egypt PMI improved to 48.4 in November, up from 47.9 in October, staying well below the neutral 50 mark.
“Optimism in the Egyptian non-oil economy is eroding as we approach the end of the year, as economic challenges arising from the Russia-Ukraine war put additional pressure on costs and capacity at businesses,” said David Owen, senior economist at S&P Global Market Intelligence.
“While the resulting downturns in new business and output were not as severe compared to those seen at the start of the year, they are also showing no signs of letting up, stretching a sequence of decline that goes back to late 2021.”
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GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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.
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
A German university was a good fit for the family budget
Annual fees for the Technical University of Munich - £600
Shared rental accommodation per month depending on the location ranges between £200-600
The family had budgeted for food, books, travel, living expenses - £20,000 annually
Overall costs in Germany are lower than the family estimated
As proof that the student has the ability to take care of expenses, international students must open a blocked account with about £8,640
Students are permitted to withdraw £720 per month
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