3 Feb 2022
Business Activity is Rising Continuously in Arab World's Largest Economies
The Index Today
Business activity in the non-oil private sector economy of the UAE and Saudi Arabia and continuously expanding in January, though at a slower pace amid the rising Omicron cases and lesser growth of demand compared to the pre-pandemic era.
Meanwhile, the UAE’s non-oil private sector economic activity also slowed from the December high but remains strong overall. The UAE stood at 54.1 in January, down from 55.6 in December.
The seasonally adjusted Saudi Arabia Purchasing Managers’ Index posted a reading of 53.2 in January, down from 53.9 in December, but signalling a solid improvement in the health of the non-oil private sector of the Arab world’s largest economy.
David Owen, an economist at IHS Markit, said, “Customer demand in the non-oil sector was quelled by the Omicron variant at the start of the year, leading to slower rises in activity and new business and the softest improvement in business conditions since October 2020, export sales decreased for the first time since last March, as companies also blamed high costs for global shipping and transport.”