Latest news with #RiyadBankPMI
Gulf Insider
04-07-2025
- Business
- Gulf Insider
Saudi Fines Umrah Firms for Service Violations
Saudi Arabia's Ministry of Hajj and Umrah has launched legal action against several Umrah operators after uncovering significant shortcomings in the accommodation services provided to pilgrims—services that fell short of the standards agreed upon in their approved programs. Action taken includes legal procedures against the violating companies. Penalties included the suspension of operations for four Umrah companies and financial fines on others, depending on the severity and recurrence of the violations. The ministry stressed its commitment to ensuring Umrah performers receive their full rights and services are delivered per the highest standards of quality and professionalism, reiterating that any negligence or breach of contractual obligations will not be tolerated. The ministry also urged all Umrah companies and establishments to strictly adhere to the approved regulations and instructions and provide services according to the specified timelines, contributing to enhanced service quality and ensuring the satisfaction and comfort of Umrah performers and visitors during their stay in the Kingdom. Also Read: Saudi Businesses Add New Jobs At Fastest Pace In 14 Years: Riyad Bank PMI
Trade Arabia
05-03-2025
- Business
- Trade Arabia
UAE, Saudi PMI data shows sustained as costs rise
The UAE and Saudi Arabia continue to demonstrate robust economic performance in their non-oil sectors, with recent PMI data highlighting sustained growth and business optimism despite rising costs. In the UAE, the S&P Global PMI held steady at 55.0 in February, well above the neutral 50.0 threshold, signaling strong expansion. Meanwhile, Saudi Arabia's Riyad Bank PMI, though cooling slightly from January's decade-high reading, remained firmly in growth territory at 58.4, down form 60.5 previously. The UAE's non-oil private sector maintained its strong performance in February, with the S&P Global Purchasing Managers' Index (PMI) holding steady at 55.0, well above the neutral 50.0 threshold that separates contraction from expansion. This marks a continuation of robust growth, with the year-to-date average exceeding the long-term trend of 54.4, reinforcing expectations that the non-oil economy will expand by 5.0% in 2024, consistent with earlier forecasts, said an Emirates NBD report. Output growth accelerated in February, with nearly 30% of surveyed businesses reporting increased activity. However, new order growth slowed to its weakest pace since October, though it remained indicative of a healthy pipeline of business. Domestic demand continued to drive the expansion, while new export orders grew at a slower pace than overall orders, albeit slightly faster than in January. Business costs rose at the sharpest rate since November, marking the first acceleration in seven months. This was primarily driven by higher purchase prices, while staff costs increased only marginally. In response, businesses raised their output prices for the second consecutive month, with the rate of increase hitting the fastest pace since September. Despite rising costs, business sentiment improved slightly in February, with around 10% of firms expecting output to expand over the next year, compared to just 1% anticipating a decline. Dubai PMI dips to 3-month low In Dubai, the S&P Global PMI fell to a three-month low of 54.3 in February, down from 55.3 in January. The decline was largely driven by a sharp slowdown in employment growth, which accounts for 20% of the overall index. Employment levels dropped to just above the neutral mark after two months of strong gains. Conversely, output surged to its highest level since October 2021, highlighting a mixed performance across sectors. Input costs rose at the fastest pace since December 2021, prompting firms to pass some of these increases on to consumers, though the rate of price hikes slowed compared to January. Business optimism improved marginally, reflecting cautious confidence in the emirate's economic prospects. All three major sectors tracked in the survey — construction, travel and tourism, and wholesale and retail trade — saw declines in February. Construction remained the weakest performer, with a headline reading of 53.4, down from 54.0 in January. While output accelerated and business optimism improved, employment in the sector turned negative for the first time since February 2022. Travel and tourism fell to 53.7, with new order growth at its slowest since September 2021. However, business optimism improved, and employment levels edged up slightly. Wholesale and retail trade also softened to 55.1, with slower new order growth and a modest dip in output. Employment in the sector grew slightly, but business optimism deteriorated, and output prices turned negative as firms sought to remain competitive. Saudi Arabia's non-oil sector remains strong In Saudi Arabia, the Riyad Bank PMI cooled slightly from January's decade-high reading but remained firmly in expansion territory at 58.4, down from 60.5. The figure is well above the neutral 50.0 mark, supporting forecasts for non-oil GDP growth of 4.5% in 2024, up from a preliminary estimate of 4.3% for the year. Nearly a third of respondents reported increased output in February, while only 2% saw a decline. New order growth remained robust, though softer than the near-record levels seen in January. Domestic demand was bolstered by a rise in expatriate workers, while new export orders softened to a three-month low but continued to expand strongly. Business optimism strengthened for the third consecutive month, reaching its highest level since late 2023, as firms anticipated robust economic growth ahead. Hiring activity accelerated, with the employment index hitting a 16-month high. Businesses also continued to build inventories, though the pace of purchases slowed from January. Input costs rose at a faster pace than the series average, driven by both purchase and staff costs. Firms reported raising salaries to retain workers, and some of these higher costs were passed on to customers, with output prices increasing for the fifth consecutive month. However, the rise in prices was modest, as competitive pressures limited firms' pricing power. - TradeArabia News Service
Saudi Gazette
04-02-2025
- Business
- Saudi Gazette
Saudi non-oil private sector grows at fastest pace since 2014
Saudi Gazette report RIYADH — The Saudi non-oil private sector recorded growth at its fastest pace in more than a decade, driven by a rise in new orders and strong business activity during the last month of January. This accelerated growth was led by the Purchasing Managers' Index (PMI) showing that new orders rose at the fastest pace since June 2011, accelerating to a reading of 71.1 in January from 65.5 the previous month, supported by favorable economic conditions and new infrastructure projects, which boosted customer demand and export sales, according to the seasonally adjusted Riyad Bank PMI, released on Tuesday. The PMI rose to 60.5 in January, from 58.4 in December 2024, its highest level since September 2014. Employment levels continued to rise in January 2025, but cost pressures remained a concern, as higher input prices helped companies raise output prices at the fastest pace in nearly a year. However, business expectations for the next 12 months improved to the strongest level since March 2024, as companies remained optimistic about future output, despite rising input price pressures. Commenting on the data, Naif Al-Ghaith, Chief Economist at Riyad Bank, explained that new orders were the main driver of expansion, with around 45 percent of companies seeing sales rise thanks to positive economic conditions and accelerating infrastructure projects. He pointed out that the increase in export orders boosted local demand, especially from the GCC countries, reflecting effective marketing strategies and competitive prices. "This expansion highlights the country's ongoing economic diversification efforts," he said. It is noteworthy that the General Authority for Statistics recently revealed that non-oil activities grew by 4.6 percent in the fourth quarter of 2024, and increased by 4.3 percent in total during 2024 Page 2
