Saudi Private Sector Activity Continues to Grow in November as New Orders Rise

Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
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Saudi Private Sector Activity Continues to Grow in November as New Orders Rise

Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)
Manufacturers are very optimistic about the next 12 months as they expect a favorable business climate. (SPA)

Saudi Arabia’s non-oil private sector continued its rapid growth during November, driven by the rise of new orders to the highest level in 5 months, according to the Riyad Bank Purchasing Managers’ Index.

The seasonally adjusted Riyad Bank Purchasing Managers' Index slowed to 57.5 in November, from 58.4 in October, but remained well above the 50 mark signaling growth.

According to the report issued by the bank in cooperation with Standard & Poor’s, the index continued to indicate a rapid expansion in the non-oil private sector during the month of November, despite evidence indicating an acceleration of price pressures to their highest levels in nearly a year and a half.

The report added that the rise in raw material prices led to a renewed increase in companies’ sales prices, but demand rates remained strong and new business flows rose at the highest rate since June, with companies acquiring new customers and increasing investment spending.

Naif Al-Ghaith, chief economist at Riyad Bank, said that the Saudi PMI has “shown positive signs of expansion, driven by strong sales, increased orders and effective marketing strategies.”

“Firms anticipate a continuous increase in output, fuelled by a robust inflow of new projects,” he added.

He noted that manufacturers, in particular, were highly optimistic about the next 12 months as they anticipate a favorable business climate.

Al-Ghaith went on to say that 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.

“This bodes well for Saudi Arabia's economic growth and suggests a favorable environment for businesses in various industries,” he stated.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."