Private Sector Boom Continues in Saudi Arabia, UAE

 Economic growth in Saudi Arabia compared to G20 countries (SPA)
Economic growth in Saudi Arabia compared to G20 countries (SPA)
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Private Sector Boom Continues in Saudi Arabia, UAE

 Economic growth in Saudi Arabia compared to G20 countries (SPA)
Economic growth in Saudi Arabia compared to G20 countries (SPA)

Private non-state oil-producing companies in Saudi Arabia and the UAE witnessed a powerful resurgence in June, fueled by a surge in production and new orders.

The notable surge in production and new orders in Saudi Arabia, reaching the highest levels in several years, prompted companies in the Kingdom to ramp up their purchasing activities swiftly, aiming to meet the growing demands for inventory support.

These insights are based on Riyad Bank Saudi Arabia Purchasing Managers’ Index report, compiled by S&P Global.

June’s headline PMI number came in at 59.6, up on May’s 58.5 and again indicative of a strong, above trend rate of growth.

According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.

“The Kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities,” said Naif Al-Ghaith, the chief economist at Riyad Bank.

The sub-index for new orders rose to 69.5 in June from 67.3 in the previous month, marking its highest level since September 2014. This increase was driven by strong demand and favorable market conditions.

The Saudi government is injecting billions of dollars into the development of non-oil sectors, aiming to diversify revenue sources away from hydrocarbons. Special emphasis is placed on creating employment opportunities for the youth.

“Ultimately, government-backed investments, especially in construction and infrastructure projects, remain crucial for the business sector,” said Al-Ghaith.

He further added that the sentiment towards future activity remains positive.

Commenting on the recent figures, Saudi Shura Council member Fadhel Al-Buainain told Asharq Al-Awsat that the Saudi economy has entered an important phase of growth after recovering from the coronavirus pandemic.

According to Al-Buainain, the witnessed recovery is a result of the government’s measures to mitigate the pandemic’s negative impacts on the economy.



US Trade Delegation in Iraq to Boost Economic Ties

 Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
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US Trade Delegation in Iraq to Boost Economic Ties

 Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)

A US trade delegation representing 60 companies was visiting Iraq to sign economic cooperation agreements with the private sector, Washington's embassy in Baghdad said Tuesday.

The three-day visit, which began on Monday, comes amid fears of an international recession after US President Donald Trump imposed sweeping tariffs on numerous countries, which included 39 percent duties on Iraqi imports.

The US delegation consists of 101 members from 60 companies in the energy, technology and health sectors, who are set to meet with senior Iraqi officials and sign agreements, said an embassy statement to AFP.

It is the largest US trade mission to Iraq in the more than 100-year history of the United States Chamber of Commerce, the embassy added.

In a post on X, the US mission said that a "pivotal memorandum of understanding to strengthen ties between the US and Iraqi private sectors" was signed on Monday between the US Chamber of Commerce and the Federation of Iraqi Chambers of Commerce.

"This partnership will foster long-term economic collaboration," it said.

According to the office of the US trade representative in Iraq, total goods trade with the oil-rich country reached $9.1 billion in 2024, with US exports amounting to $1.7 billion.

US goods imports from Iraq totaled $7.4 billion.

During the visit, Iraq is expected to sign a "landmark agreement" with General Electric to develop a high-efficiency power plant, according to Farhad Alaaldin, foreign policy adviser to the Iraqi Prime Minister Mohammed Shia al-Sudani.

Last year, during Sudani's visit to Washington, Iraq and the United States signed several memoranda of understanding in the energy sector, including one with General Electric to ensure the maintenance of the Iraqi electricity grid.

Iraq's power plants are currently highly dependent on gas imported from Iran, which provides about a third of its neighbor's energy needs.

But Tehran has often cut supplies, exacerbating regular power outages.

Baghdad has repeatedly stressed the need to diversify energy sources to reduce its dependence on Iran.

Iraq has been trying to move past decades of war and unrest, including a sectarian struggle after the US-led invasion 2003 toppled Saddam Hussein.