Non-Oil Private Sector Diverges Across Middle East in August as Egypt Nears Neutrality and Gulf Expands
August Purchasing Managers’ Index (PMI) data revealed diverging economic trajectories across the Middle East’s non-oil private sector, with Saudi Arabia and Kuwait posting robust expansions while Egypt advanced to the threshold of renewed growth after months of contraction.
The 50.0 threshold separates economic expansion from contraction. August readings highlighted strong domestic demand in the Gulf alongside a broad-based stabilization across Egyptian industrial and service enterprises.
Regional PMI Performance Summary
CountryAugust PMIJuly PMIBenchmark StatusPrimary Drivers
Saudi Arabia53.853.1Expanding (6-Month High)Surging output, strong domestic demand, and steady business inflows.
Kuwait53.650.8Expanding (Accelerating)Faster new orders, renewed hiring, and aggressive inventory restocking.
Egypt49.646.8Sub-50 (7-Month High)Softening decline in output, solid job creation, and 4-year peak in business confidence.
Country-by-Country Breakdown
Egypt (49.6): The index recorded its highest level in seven months, closing within fractions of the growth threshold. The substantial recovery from July’s 46.8 was underpinned by slower rates of decline in both output and new business intakes. Notably, private firms recorded accelerated recruitment, pushing overall business sentiment regarding future output to its highest level in more than four years.
Saudi Arabia (53.8): The Riyad Bank PMI marked five straight months of solid non-oil sector growth. Rising manufacturing and commercial activity outweighed ongoing headwinds in international export markets and elevated local market competition.
Kuwait (53.6): Following modest growth in July, Kuwait’s non-oil private sector saw significant acceleration. Strong order book pipelines spurred renewed private-sector recruitment and driven purchasing activity to replenish depleted inventories, supported by an upbeat 12-month outlook among surveyed firms.