Prime Highlights:
- Non-oil businesses in Kuwait, Egypt, and Qatar grew in November, with more orders, higher production, and additional jobs.
- Companies in the region are optimistic about growth in the coming year, showing a positive trend for the private sector.
Key Facts:
- Kuwait’s PMI rose to 53.4, its highest in four months, driven by new orders and strong marketing.
- Qatar’s non-oil sector saw increased orders and job creation, marking a notable improvement in business conditions.
Background:
Non-oil businesses in Kuwait, Egypt, and Qatar grew in November, with more orders, production, and jobs. Companies also reported increases in exports, while staffing levels rose to a five-month high to meet rising demand.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said, “Non-oil firms in Kuwait are enjoying a positive final quarter of the year, with stronger growth across output, new orders, employment, and purchasing.” He noted that rising input costs could test companies’ ability to maintain competitive pricing.
In Egypt, the non-oil sector rebounded strongly, with the PMI increasing to 51.1 from 49.2, marking the first expansion since February. Firms reported the strongest growth in output and new orders in five years, particularly in manufacturing, construction, and services. While staffing levels remained largely unchanged, backlogs of work continued to rise.
David Owen, Senior Economist at S&P Global, said, “The Egyptian non-oil private sector registered its best upturn in over five years, hinting at a strong end to 2025. Year-on-year GDP growth could exceed 5% in the fourth quarter.”
Qatar’s non-energy sector also recorded renewed gains, with the PMI jumping to 51.8, almost returning to its long-run trend. Employment growth remained elevated, marking the fifth-fastest rise in survey history. Increased demand, marketing strategies, new contracts, and population growth contributed to the improved business climate.
Trevor Balchin from S&P Global said that Qatar’s non-oil businesses grew in November, with more orders and more jobs. Companies are hopeful about growth in the next year.
Arab countries are focusing on building their non-oil sectors to rely less on oil. The region’s private sector is growing strongly in Kuwait, Egypt, and Qatar.
