Saudi Business Activity Records One Of Highest Growth Rates Since Pandemic

People wearing protective face masks and gloves shop at a supermarket, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia May 11, 2020. REUTERS/Ahmed Yosri/File Photo
People wearing protective face masks and gloves shop at a supermarket, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia May 11, 2020. REUTERS/Ahmed Yosri/File Photo
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Saudi Business Activity Records One Of Highest Growth Rates Since Pandemic

People wearing protective face masks and gloves shop at a supermarket, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia May 11, 2020. REUTERS/Ahmed Yosri/File Photo
People wearing protective face masks and gloves shop at a supermarket, following the outbreak of the coronavirus disease (COVID-19), in Riyadh, Saudi Arabia May 11, 2020. REUTERS/Ahmed Yosri/File Photo

Commercial activity in Saudi Arabia witnessed a rise at one of the fastest rates since the beginning of the Covid-19 pandemic.

According to the IHS Markit Purchasing Managers’ Index, the Kingdom scored 56.9 points during November 2021, which reflected a sharp improvement of the non-oil private sector economy.

Although it fell from 57.7 points in October and hit a three-month low, the index was in line with the 12-year average.

“The largest component of the headline PMI is the New Orders Index, which fell for the second month in a row from September’s seven-year high. Despite this, the index continued to indicate a robust upturn in new business volumes that was stronger than most of the recovery period since the initial COVID-19 lockdown,” according to IHS Markit Saudi Arabia.

According to the index, many members of the study committee linked the increase in sales to a return to normal economic conditions and an improvement in the tourism sector with the easing of travel procedures. In parallel, external demand improved with export orders rising to the highest level since May.

As a result, business activity in the non-oil private sector rose sharply in the middle of the last quarter. And the growth rate was slightly weaker than October’s highest level in four years.

Meanwhile, the rate of backlog decline was the slowest since the pandemic began. Companies noted that demand pressures were beginning to pressure the overall capacity.

The increase in production led companies to make further expansions in hiring and purchasing. Employee numbers rose at the fastest rate since June, but many companies remained cautious about their future sales outlook.

Commenting on the latest survey results, David Owen, Economist at IHS Markit, said: “The Saudi Arabian PMI continued to signal a strong end to the year for the non-oil economy. Despite slipping to a three-month low, new business growth was rapid overall, whilst activity expanded at one of the quickest rates since the start of the pandemic.”



World Bank to Finance Syria with $146 Million to Restore Electricity

Syrians walk in a dark street in Douma. Reuters file photo
Syrians walk in a dark street in Douma. Reuters file photo
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World Bank to Finance Syria with $146 Million to Restore Electricity

Syrians walk in a dark street in Douma. Reuters file photo
Syrians walk in a dark street in Douma. Reuters file photo

The World Bank approved a $146 million grant to help Syria restore reliable, affordable electricity and support the country's economic recovery, it said in a statement on Wednesday.

“The Syria Electricity Emergency Project (SEEP) will rehabilitate damaged transmission lines and transformer substations and provide technical assistance to support the development of the electricity sector and build the capacity of its institutions,” it said.

After 14 years of war, Syria's electricity sector has been suffering from severe damage to its grid and power stations, aging infrastructure, and persistent fuel shortages.

"Among Syria’s urgent reconstruction needs, rehabilitating the electricity sector has emerged as a critical, no-regret investment that can improve the living conditions of the Syrian people, support the return of refugees and the internally displaced, enable resumption of other services such as water services and healthcare for the population and help kickstart economic recovery," said World Bank Middle East Division Director Jean-Christophe Carret.

"This project represents the first step in a planned increase in World Bank support to Syria on its path to recovery and development,” he added.

According to the World Bank statement, the SEEP will finance the rehabilitation of high voltage transmission lines, including two critical 400 kV high-voltage interconnector transmission lines damaged during the conflict, restoring Syria’s regional connectivity to Jordan and Türkiye.

The project will also repair damaged high-voltage transformer substations near demand centers in the most impacted areas that host the highest number of returnee refugees and internally displaced people and provide necessary spare parts and maintenance equipment.

In addition, the SEEP will provide technical assistance to inform the country’s key electricity sector strategies, policy and regulatory reforms, and investment plans for medium to long term sustainability. It will also provide capacity building support to the electricity sector institutions to implement these strategies and reforms.