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Saudi Trade Activity Marks Fastest Growing Rate Since December 2017

Saudi Trade Activity Marks Fastest Growing Rate Since December 2017

Friday, 4 October, 2019 - 12:00
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, March 1, 2017. REUTERS/Faisal Al Nasser/File Photo

In a new indicator that asserts the private sector revival in Saudi Arabia, research data showed an increase in trade activity. This increase is the fastest-growing rate since December 2017.

It boosted recruitment in the private sector at a rate which is the highest in 18 months.

Business conditions in Saudi Arabia’s non-oil private sector improved at the fastest rate in three months, bolstered by new domestic and international business, according to IHS Markit.

Saudi Finance Minister Mohammed al-Jadaan expected earlier that the non-oil GDP would rise by 3 percent, which is more than estimated value at 2.9 percent. Jadaan’s statement was based on the escalating performance of the private sector.

He also affirmed that the non-oil revenues continued to grow during H1 of this year by 14.4 percent, with a progress of the economic activity and continuity of implementing reforms and initiatives aiming at developing revenues and diversifying sources.

The Purchasing Managers’ Index rose to 57.3 in September from 57 in August, while the index reached its highest levels in three months due to the continuity of output progress.

Additionally, the rate of growth of new order exports accelerated from August, with anecdotal evidence suggesting that companies had seen an improvement in foreign demand last September.

IHS Market economist Amritpal Virdee, said: “October data will provide the first opportunity to gauge the impact of the recent attacks on the critical oil processing facilities in Abqaiq and Khurais on the wider economy.”

Business confidence and optimism towards future growth prospects remained strong during September. Just under 38 percent of respondents forecast greater business activity over the next 12 months.

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