#UAE non-oil sector sees strongest growth in seven months: PMI. #Dubai PMI climbed to 54.2 in September

UAE non-oil sector sees strongest growth in seven months: PMI

The United Arab Emirates' non-oil private sector recorded its strongest expansion in seven months in September, driven by a sharp rise in new business inflows, according to a survey released on Friday.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) rose to 54.2 in September from 53.3 in August, reflecting a robust recovery in demand. 

Although the headline index remains below the survey’s long-run average, the latest reading suggests that non-oil business performance has rebounded well since its low point in July, said David Owen, Senior Economist at S&P Global Market Intelligence.

"Over 30% of surveyed firms reported an increase in new order intakes during the month, which drove a sharp improvement in sales growth from its over four-year low in August. The uplift pointed to some positive momentum in the domestic market as export sales growth remained relatively muted,” he said.

The improvement in sales volumes was largely supported by domestic demand, though new orders from foreign clients also saw an uptick.

Purchasing activity increased in September after declining for the first time in over four years in August. However, the report noted that the rise was relatively subdued compared to recent trends, as businesses cited sufficient stock levels, competitive pressures, and pricing concerns as factors limiting buying activity.

Employment levels rose at the fastest pace since May, though the increase remained modest.

Looking ahead, firms remained optimistic about the year ahead, albeit slightly less so than in August, which marked a ten-month high in sentiment.

Dubai keeps pace 

Non-oil companies in Dubai also saw a notable boost in sales at the end of the third quarter. The Dubai PMI climbed to 54.2 in September from 53.6 in August, mirroring the broader UAE trend. 

Firms reported a sharper increase in new work compared to August, with the pace of sales growth accelerating to an eight-month high, following only a modest upturn the previous month.

#SaudiArabia's non-oil private sector growth strongest in six months, PMI shows | Reuters

Saudi Arabia's non-oil private sector growth strongest in six months, PMI shows | Reuters

Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in September, driven by a surge in new orders and increased output, a survey showed on Sunday.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) climbed to 57.8 in September from 56.4 in August, indicating the strongest improvement in operating conditions since March.

New orders saw a marked increase, with firms benefiting from strong market conditions, new customer acquisitions, and competitive pricing. This led to a rise in new work from international clients for the second consecutive month.

Robust domestic and international demand helped the new order subindex jump to 63.3 in September from August's 60.1.

Output growth experienced the quickest rate of increase since February.

"Overall, September’s survey highlights a resilient private sector that is navigating cost pressures while benefiting from firm demand and steady hiring," said Naif Al-Ghaith, Riyad Bank's chief economist.

Saudi Arabia's government is forecasting real GDP growth of 4.4% in 2025, with estimated non-oil sector growth of 5%, supported by increased domestic demand and improved rates of employment, according to a pre-budget statement.

Employment growth remained strong in September, driven by higher demand and the need to manage workloads efficiently. Companies increased hiring steadily, although the related subindex saw a slight downward tick from the previous month.

Input price inflation, driven by higher wages and supplier costs, edged down to a six-month low.

Optimism for future activity improved, with firms confident about increased demand and upcoming large-scale infrastructure projects.

Gulf bourses gain on optimism over further US rate cuts | Reuters

Gulf bourses gain on optimism over further US rate cuts | Reuters

Gulf stock markets closed on positive trajectories on Sunday, propelled by heightened investor expectations surrounding potential additional reductions in U.S. interest rates.

Investors also reacted positively to Palestinian militant group Hamas' agreement to some of the terms in U.S. President Donald Trump's plan to end the war in Gaza, though U.S. Secretary of State Marco Rubio said the war in Gaza has "not yet" ended, describing the release of the hostages held by Hamas as a first phase.

The key U.S. non-farm payrolls report, originally slated for release on Friday, has been postponed, leaving investors to lean on indicators that point to a cooling labor market and sustain expectations of an imminent rate cut.

Investors are pricing in a 97% probability of a 25-basis-point rate reduction in October and a 85% likelihood of another similar cut in December, according to CME Group's FedWatch tool.

The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.5% and National Shipping Company of Saudi Arabia (Bahri) (4030.SE), opens new tab jumping 5.7%.

Bahri on Wednesday entered into a purchase agreement with International Maritime Industries Company for the construction and delivery of six dry bulk carriers. The total contract value is estimated at approximately 762 million riyals ($203 million).

In Qatar, the index (.QSI), opens new tab added 0.5%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.8% higher, led by a 1.7% gain in Commercial International Bank (COMI.CA), opens new tab.