Saudi Private Sector Grows to Highest Level in 6 Months

People are seen at an employment forum in Saudi Arabia. (SPA)
People are seen at an employment forum in Saudi Arabia. (SPA)
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Saudi Private Sector Grows to Highest Level in 6 Months

People are seen at an employment forum in Saudi Arabia. (SPA)
People are seen at an employment forum in Saudi Arabia. (SPA)

Saudi Arabia’s non-oil private sector expanded for the third consecutive month in October, driven by a surge in new orders - their highest levels since March - and a substantial rise in sales, which significantly boosted business activity.

The Riyad Bank Purchasing Managers’ Index (PMI) increased from 56.3 in September to 56.9 in October, reflecting improved operating conditions and economic momentum. This growth was attributed to robust sales in October, as companies reported strong customer demand and overall favorable economic conditions.

Consequently, businesses experienced an expansion in commercial activity and maintained a positive outlook for future growth. Additionally, purchasing of production inputs accelerated after reaching a three-year low in September, though it remained moderate compared to early-year levels, with companies noting sufficient inventory levels.

The report highlighted, however, that the strong sector-wide improvement was accompanied by increased cost pressures in materials and staffing, resulting in the first rise in average prices for goods and services in four months.

Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, told Asharq Al-Awsat that the robust economic performance was driven by a notable rise in sales, contributing to expansions in employment, procurement, and inventory.

The accelerated pace of input purchases in September, the fastest in three years, reflects a continued expansionary trend since September 2020, driven by rising demand, he stressed

The significant increase in new orders in October underscores the success of Vision 2030’s strategic emphasis on innovation and infrastructure development, he added.

More than 40% of surveyed companies reported increased demand, driven by strong local customer interest, creative marketing strategies, and sustained investments in infrastructure, demonstrating the resilience of Saudi Arabia’s economy and reinforcing its position as a leading non-oil economy in the region.

He noted that these gains align with the non-oil GDP growth rate of 4.2% in the third quarter, indicating a positive economic shift as the country seeks to diversify income sources away from oil, contributing to Vision 2030’s goals of building a sustainable economy capable of meeting future challenges.

Al-Ghaith projected that the non-oil sector’s contribution to GDP would exceed 52%, with growth surpassing 4% this year.



Russian Rouble Dips to 100 to Dollar as Trump Declares Election Win

The US Embassy with a US national flag, seen behind a building with a Russian national flag in Moscow, Russia, Tuesday, Nov. 5, 2024. (AP Photo/Alexander Zemlianichenko)
The US Embassy with a US national flag, seen behind a building with a Russian national flag in Moscow, Russia, Tuesday, Nov. 5, 2024. (AP Photo/Alexander Zemlianichenko)
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Russian Rouble Dips to 100 to Dollar as Trump Declares Election Win

The US Embassy with a US national flag, seen behind a building with a Russian national flag in Moscow, Russia, Tuesday, Nov. 5, 2024. (AP Photo/Alexander Zemlianichenko)
The US Embassy with a US national flag, seen behind a building with a Russian national flag in Moscow, Russia, Tuesday, Nov. 5, 2024. (AP Photo/Alexander Zemlianichenko)

The Russian rouble briefly weakened to 100 against the dollar on Wednesday as Donald Trump claimed victory in the US presidential election, a result that could push the U.S. currency higher.
Trump claimed victory in the 2024 presidential contest after Fox News projected that he had defeated Democrat Kamala Harris, which would cap a stunning political comeback four years after he left the White House.
By 0737 GMT, the rouble was 0.2% weaker against the dollar at 98.00, earlier touching 100.25, close to its weakest point in over a year, Reuters reported.
The rouble was steady against the yuan at 13.73, according to LSEG data, and gained 1.2% to 105.6 against the euro.
Analysts generally assume Trump's plans for restricted immigration, tax cuts and sweeping tariffs if enacted would put more upward pressure on inflation and bond yields, than Harris' center-left policies.
Trump's proposals would also tend to push up the dollar and potentially limit how far US interest rates might ultimately be lowered. Trump has also criticized the level of US military support for Ukraine and has pledged to end the conflict soon.
Western sanctions imposed on the Moscow Exchange (MOEX) and its clearing agent, the National Clearing Center, on June 12 stopped all trade in dollars and euros at MOEX, making the yuan the most-traded foreign currency in Russia.
Trade in dollars and euros has shifted to the over-the-counter (OTC) market, obscuring price data.
One-day rouble-dollar futures, which trade on the Moscow exchange are a guide for OTC market rates. The central bank's official exchange rate, which it calculates using OTC data, was last set at 98.06 to the dollar.