#SaudiArabia, #UAE Business Conditions Improve Even as Costs Rise - Bloomberg

Saudi Arabia, UAE Business Conditions Improve Even as Costs Rise - Bloomberg

Business conditions Saudi Arabia and the United Arab Emirates improved in June, even as cost pressures increased.

Accelerating demand helped the Arab world’s largest economies secure new business orders and maintain employment levels. A purchasing managers’ index for Saudi Arabia rose to 59.6 from 58.5 in May, according to Riyad Bank. A similar S&P Global survey for neighboring UAE climbed to 56.9 from 55.5.

Both gauges are way above the 50-mark that separates growth from contraction. The countries are among the world’s biggest oil exporters and benefited from a surge in crude prices to more than $100 a barrel after Russia’s invasion of Ukraine. Saudi Arabia was the fastest-growing G20 economy in 2022.

Oil prices have since fallen as the global economy has slowed, which will probably lead to weaker growth for Saudi Arabia and the UAE this year.