Kuwait, Egypt sustain non-oil business growth in February: PMI survey 

The steady momentum of non-oil business activity across Middle Eastern economies highlights progress in economic diversification efforts. Shutterstock
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Updated 04 March 2025
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Kuwait, Egypt sustain non-oil business growth in February: PMI survey 

RIYADH: Kuwait and Egypt’s non-oil private sectors maintained growth in February as business activity increased in both countries, according to S&P Global. 

In its latest report, the financial services firm revealed that Kuwait’s Purchasing Managers’ Index stood at 51.6 in February, down from 53.4 in the previous month.

A PMI reading above 50 indicates expansion in private business conditions, while a reading below 50 signifies contraction. 

The steady momentum of non-oil business activity across Middle Eastern economies highlights progress in economic diversification efforts. In February, Saudi Arabia recorded a PMI of 58.4, slightly down from a decade-high 60.5 in January. 

“Although we continued to see a generally positive performance of the non-oil private sector in Kuwait during February, there were some elements of the latest PMI survey which sound a note of caution,” said Andrew Harker, economics director at S&P Global Market Intelligence. 

He added: “Primary among these was the fact that firms lowered their staffing levels, perhaps a sign of worries that the slowdown in new order growth has further to run.” 

Despite this, overall business conditions in Kuwait’s non-oil private sector continued to improve, driven by rising output and new orders. Respondents in the survey attributed this growth to marketing campaigns across multiple channels as well as price cuts.

“Alongside successful advertising, growth was again predicated on the offer of discounts to customers, and it remains to be seen how sustainable this will be for firms in the face of sharply rising input costs,” added Harker. 

Apart from job cuts in February, which could lead to backlogs of work, companies also reduced purchasing activity. 

Looking ahead, non-oil private sector firms in Kuwait said price discounting, marketing, new product development, and strong customer service could support output growth over the coming year. 

Egypt’s PMI stays above neutral 

In a separate report, S&P Global revealed that Egypt’s PMI stood at 50.1 in February, down from 50.7 in January. 

This marked the first time since late 2020 that the country’s rating remained above the 50 neutral threshold for two consecutive months, signaling a sustained improvement in business conditions. 

Companies participating in the survey indicated that an ongoing recovery in client demand led to the first back-to-back improvement in business conditions in over four years. 

The increase in order book volumes resulted in a solid rise in purchasing activity, though output remained stable and employment declined. 

David Owen, senior economist at S&P Global Market Intelligence, said the Egypt figure showed the country’s non-oil economy started 2025 in “better health.”

He added: “Coupled with January’s upturn, the data reflects the best opening two months of the year in the survey’s history.”  

In January, the International Monetary Fund reached an agreement with Egyptian authorities allowing the country to access about $1.2 billion to strengthen its finances. 

According to S&P Global, Egypt’s non-oil private sector growth in February was further supported by another month of subdued price pressures, with inflation of average cost burdens rising from January but remaining historically mild. 

New work volumes increased for the second consecutive month after having risen only once in the previous 40 months of data collection. 

In February, stronger demand prompted firms to boost purchases for the third straight month, marking the sharpest increase in three and a half years. 

“Stronger customer spending seems to have revitalized markets, driving higher sales volumes and supporting improved operating conditions. This positive momentum has led to increased spending among firms,” said Owen. 

He added: “Additionally, price pressures are relatively low compared to those experienced in 2024, indicating that inflation is likely to continue its downward trend, in the near-term at least.” 

Despite the positive developments, businesses that participated in the survey reported challenges in retaining staff and hiring new workers, leading to a third employment decline in four months. 

Selling prices also increased modestly in February, as companies sought to limit the impact of higher costs on customers. 

Regarding future expectations, firms remained cautious about the economic outlook. Business confidence for the next 12 months fell to its lowest level since November, with only 5 percent of firms expressing optimism about future output growth. 

“The employment market remains mixed at best, and the manufacturing sector is struggling to secure new orders. Economic and geopolitical risks continue to loom large, contributing to another month of subdued expectations for the year ahead,” concluded Owen.


Saudi Arabia’s Matarat, Thales sign deal to transform air travel experience

Updated 6 sec ago
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Saudi Arabia’s Matarat, Thales sign deal to transform air travel experience

RIYADH: Matarat Holding, the state-owned company responsible for managing Saudi Arabia’s airports, has signed a strategic agreement with French aerospace and defense giant Thales to advance the Kingdom’s aviation sector through cutting-edge digital technologies.

The agreement, formalized during the Passenger Terminal Expo 2025 in Madrid, Spain, focuses on enhancing innovation, operational efficiency, and the overall passenger experience across the Kingdom’s 27 airports.

According to a statement by Matarat, the partnership will leverage Thales’ expertise in artificial intelligence, biometrics, automation, and data-driven systems to develop safer, smarter, and more efficient travel journeys.

As part of the collaboration, advanced digital platforms and next-generation infrastructure will be deployed throughout Saudi Arabia’s airport network.

“This collaboration with Matarat Holding represents a revolutionary step in reimagining the future of the Saudi aviation sector,” said Bernard Roux, CEO of Thales in Saudi Arabia and Central Asia.

“By combining Thales’ digital transformation capabilities with Matarat’s operational excellence, we aim to build a smart and secure aviation ecosystem.”

Roux emphasized that the integration of AI, cybersecurity solutions, and connected systems will not only improve passenger experience and boost efficiency, but also enhance national security— contributing directly to the Kingdom’s Vision 2030 goal of becoming a global aviation leader.

In addition to technology deployment, the agreement includes knowledge-sharing initiatives, operational streamlining, and joint innovation efforts aimed at future-proofing the Kingdom’s aviation infrastructure.


Cairo plans economic independence as IMF program nears end

Updated 27 min 42 sec ago
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Cairo plans economic independence as IMF program nears end

RIYADH: Egypt is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027, according to the country’s prime minister.  

Speaking during his weekly press conference, Mostafa Madbouly stated that the government is developing a long-term national economic strategy that will extend to 2030 and focus on sustaining growth without relying on international institutions, according to an official release.  

The comments come as Egypt attempts to stabilize an economy that has struggled with record inflation, a depreciating currency, and mounting debt. Over the past few years, authorities have pushed through reforms to unlock external funding, including a major IMF deal, Gulf-backed investments, and a record sale of state assets. 

In a release on its official social media handle, the Egyptian Cabinet quoted the prime minister as saying: “We are aiming to develop a national program for the Egyptian state without relying on other international institutions. This will be linked to submitting, for the first time next year, a three-year budget.” 

In response to a question about the government’s vision beyond the current IMF program and its efforts to preserve the gains reflected in recent positive economic indicators, the release added: “Madbouly confirmed that the government is drafting a detailed plan extending to 2030. This reflects a broader outlook beyond the IMF program, which ends by late 2026 or early 2027.” 

Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024.   

The deal includes major reforms such as currency devaluation, sharp interest rate hikes, tighter fiscal policy, and privatization of state-owned assets. 

So far, Egypt has received about $3.3 billion, with a fifth program review conducted in early May 2025. 

The IMF continues to stress the importance of accelerating structural reforms and managing debt levels.  

In the release, Madbouly emphasized that the government is prioritizing macroeconomic stability and social development.   

He pointed to the growing importance of social support programs, saying they would continue to expand annually.   

He also underlined the importance of technological advancement, industrial development, and greater reliance on digital transformation and artificial intelligence in the country’s future economic model.  

Regarding Egypt’s ongoing IMF program, Madbouly clarified that the reform agenda was created and implemented by the Egyptian government itself, with the IMF acting in a supportive role.   

He said the presence of the IMF and similar institutions in Egypt serves as a confidence signal to foreign investors and the global financial community, and that the IMF’s involvement does not entail new conditions or burdens on citizens.  

Madbouly also addressed developments in the Future of Egypt agricultural project, which he said is designed to rely on modern, mechanized farming and industrial methods.   

Unlike traditional high-density agricultural zones in the Nile Delta, the new areas will be less labor-intensive and structured to attract large-scale private sector participation.   

He said the aim is to preserve agricultural productivity by avoiding the fragmentation of land that has affected other regions.  

On technical education reform, Madbouly announced that the government is reviewing plans to convert outdated commercial diploma schools into modern technological schools that align with labor market needs.   

This reform will also involve private sector partnerships and follow successful models such as the WE School for ICT Education.   

He noted that graduates from current vocational tracks will be eligible to join digital transformation initiatives like the state-supported Digital Pioneers Program.  

In the health sector, the prime minister confirmed that the second phase of Egypt’s universal health insurance scheme will expand to five additional governorates.   

He added that one densely populated governorate might also be included in this phase, bringing the total number of covered regions to 12.   

Madbouly said the system’s financial viability has been reassessed and extended to ensure it can remain sustainable for up to 50 years.  

He also spoke about the government’s plan to support the local production of infant formula, describing it as a capital-intensive industry that requires significant investment.   

The state is encouraging private sector participation in this strategic initiative and is ready to act as a partner to ensure long-term success and stability in production.  


Savings deposits hit highest share in 16 years as Saudi money supply climbs to $815bn

Updated 22 min 14 sec ago
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Savings deposits hit highest share in 16 years as Saudi money supply climbs to $815bn

RIYADH: Saudi banks’ money supply rose 8.22 percent year on year to SR3.06 trillion ($815 billion) in March, driven by a sharp surge in time and savings deposits, recent data showed.

According to figures by the Saudi Central Bank, also known as SAMA, this category increased by 27.55 percent during the period to reach SR1.07 trillion, the greatest growth rate in over 14 months. It now accounts for 35.2 percent of the total money supply, marking its highest share in 16 years.

The notable shift reflects changing behavior among depositors, increasingly favoring interest-bearing accounts amid ongoing global monetary tightening.

While the US Federal Reserve kept rates steady in recent months following 100 basis points of cuts last year, the risk of renewed inflation, partly due to rising import tariffs, may have delayed further easing.

Given that SAMA typically mirrors Fed rate decisions to maintain the riyal’s dollar peg, this has reinforced the appeal of yield-generating instruments like term deposits among Saudi savers.

Term deposits, which offer higher returns than conventional bank accounts in exchange for holding funds over a fixed period, have become more attractive to Saudi savers seeking to lock in interest income amid volatile economic signals.

Despite this surge, demand deposits, accounts that allow immediate access to funds, still hold the largest share at 47.84 percent, or SR1.46 trillion. However, this marks their lowest proportion in nearly five years.

Growth in this category slowed to 3.9 percent year on year, reflecting a broader migration toward savings products.

Meanwhile, quasi-money deposits, which include foreign currency deposits and marginally liquid instruments, declined by 22.85 percent to SR266.87 billion, representing 8.73 percent of the total.

Currency outside banks rose by 10.57 percent to SR251.53 billion.

Credit to businesses in the Kingdom has witnessed robust growth in recent quarters, underpinned by increased demand from key sectors such as real estate, construction, manufacturing, and broader non-oil economic activities. 

According to data from SAMA, corporate lending grew by over 22 percent year on year in March, reflecting the banking sector’s critical role in financing Vision 2030-linked projects and supporting economic diversification.

This strong lending momentum has contributed to a tightening liquidity environment. As loans continue to grow at a faster pace than deposits, reflected in the rising loan-to-money supply ratio, which climbed from 95 percent in March 2024 to 101.51 percent in March 2025, banks have increasingly turned to capital markets to maintain liquidity.

In particular, Saudi banks have ramped up their sukuk issuances and other debt instruments to meet financing demand while preserving balance sheet stability.

For example, several major financial institutions, including Al Rajhi Bank and Saudi National Bank, have recently raised multibillion-riyal sukuk to bolster their funding base.

Saudi Arabia’s expanding reliance on debt markets to fund its ambitious development agenda has been met with continued confidence from major credit rating agencies, reflecting the Kingdom’s robust fiscal position and commitment to economic diversification.

In 2024, the total value of listed sukuk and debt instruments in the Kingdom rose by more than 20 percent year-on-year, reaching SR663.5 billion, up from SR549.8 billion in 2023, according to data from the Capital Market Authority. This marks a significant acceleration in domestic debt issuance, underscoring the sector’s growing dependence on capital markets to maintain liquidity amid sustained loan expansion.

Moody’s Investors Service upgraded Saudi Arabia’s credit rating to “Aa3” from “A1” in November, citing the country’s efforts to diversify beyond its oil economy.

The agency noted that these diversification efforts would mitigate the Kingdom’s vulnerability to oil market fluctuations and the global carbon transition over time.

Similarly, S&P Global Ratings revised Saudi Arabia’s outlook to positive in September, affirming its “A/A-1” ratings.

The agency highlighted the Kingdom’s strong non-oil growth outlook and economic resilience, expecting an acceleration of investments to develop newer industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector.

These affirmations by major credit rating agencies underscore the nation’s solid creditworthiness and the effectiveness of its economic reforms under Vision 2030, even as it increases borrowing to finance its transformative projects.


Saudi Arabia, Spain sign MoU to boost SME sectors and deepen economic ties

Updated 42 min 36 sec ago
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Saudi Arabia, Spain sign MoU to boost SME sectors and deepen economic ties

  • Deal to back SMEs through partnerships and initiatives
  • Saudi-Spanish Joint Commission meeting focused on focused on strengthening economic, social, and cultural ties

RIYADH: Saudi Arabia and Spain are set to strengthen cooperation between small- and medium-sized enterprises thanks to a wide-ranging agreement across key sectors.

The memorandum of understanding, signed by Saudi Minister of Economy and Planning Faisal Alibrahim and Spanish Minister of Economy, Trade and Business Carlos Cuerpo in Riyadh, outlines joint efforts in economic modeling and policy-making.

It aims to back SMEs through partnerships and initiatives, as well as facilitating joint projects and bilateral participation in economic events, according to a statement by the Ministry of Economy and Planning.

The agreement comes as the Kingdom’s Vision 2030 plan aims to further elevate the SME sector’s contribution to 35 percent of the gross domestic product by the end of the decade as part of its economic diversification initiative.

The signing of the agreement coincided with the fourth session of the Saudi-Spanish Joint Commission, which convened in Riyadh. The meeting was co-chaired by Al-Ibrahim and Cuerpo, with senior officials from both countries in attendance.

“Officials from both sides joined the session to discuss ongoing and future initiatives aimed at enhancing economic, social, and cultural collaboration between the two countries,” the Ministry of Economy and Planning said on X.

The session focused on strengthening economic, social, and cultural ties, reflecting the deep-rooted partnership and shared ambitions between the Kingdom and Spain.

The MoU also includes the exchange of information and statistics related to industry, technology and innovation to achieve sustainable development goals within the framework of Saudi Vision 2030.​

In an interview with Al Arabiya, Cuerpo described the relationship between Saudi Arabia and Spain as a strong and deepening economic partnership, highlighting the Kingdom’s central role as the European country’s primary trade partner in the region and noting the steady growth in bilateral trade in recent years.

“I say over the past three years, it’s grown by 13 percent. Investment has grown, also, heavily over the past few years. But there is still room for us to grow, for us to further collaborate and further diversify our relations, particularly in terms of investment, and particularly also in terms of the presence of Spanish companies here and also of Saudi companies in Spain,” Cuerpo said.

He continued: “Just look at the presence of Spanish companies in the Kingdom, it has grown by 60 percent over the past three years, and in particular in key sectors for the Vision 2030 like energy, infrastructure or others — water, for example.”

In October, Bandar Alkhorayef, minister of industry and mineral resources, discussed ways to develop economic relations with Cuerpo and increase Spain’s investments in Saudi Arabia.

Alkhorayef highlighted the goals of Saudi Vision 2030 to diversify the Kingdom’s economy and, through various incentives, attract foreign investment in the industrial and mining sectors.


Qatar tourism sector accounts for 8% of GDP, official says 

Updated 22 min 54 sec ago
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Qatar tourism sector accounts for 8% of GDP, official says 

  • Qatar anks among the highest spenders on healthcare, allocating up to 12% of its annual budget
  • Gulf nation welcomed over 1.5 million international visitors in the first quarter of 2025

RIYADH: Qatar’s tourism industry contributed 55 billion Qatari riyals ($15.1 billion) to the country’s gross domestic product in 2024, accounting for 8 percent of total economic output, according to a senior official.  

The figure marks a 14 percent increase compared with 2023, Chairman of Qatar Tourism Saad bin Ali Al-Kharji said during a high-level business forum in Doha, the country’s news agency reported. 

The uptick aligns with the Gulf nation’s broader Tourism Strategy 2030, which aims to boost the sector’s contribution to 12 percent of GDP and attract 6 million visitors by the end of the decade. 

The report stated: “His Excellency highlighted some of 2024’s achievements, which saw international visitor arrivals reached 5 million, a 25 percent year-on-year increase, with in-destination spend totaling nearly QAR 40 billion.”  

It added: “The hospitality sector also achieved a key milestone, recording 10 million room nights sold during the year.”  

Speaking during a panel discussion titled “Tourism in Focus” at the 5th edition of the Qatar Economic Forum, Al-Kharji emphasized the global shift in travel demand toward lifestyle-oriented and purpose-driven experiences, such as wellness retreats, cultural immersion, and luxurious nature-based getaways. 

He further noted that travelers are increasingly prioritizing experiences like personalized accommodations, culinary adventures, and curated cultural activities over traditional material purchases. 

“Qatar’s strategy aligns with these trends, focusing on six high-potential demand spaces and delivering 54 strategic projects across product development, regulation, and visitor experience enhancement,” the QNA report stated.  

The chairman highlighted that his organization is working closely with the Ministry of Public Health to develop a dedicated health tourism strategy, with several plans already approved. 

The Gulf nation ranks among the highest spenders on healthcare, allocating up to 12 percent of its annual budget to the sector, and Al-Kharji added that further investments will boost tourism related to the industry.

Qatar is also gearing up to host several major international sporting events in the coming years, including the FIFA U-17 World Cup annually from 2025 to 2029, the FIBA Basketball World Cup in 2027, and the 2030 Asian Games. 

The chairman underscored Qatar’s commitment to combining luxury with sustainability across all projects, citing examples such as the Ras Abu Aboud Resort and the Qatar National Convention Centre. The center was the first venue in the region to be certified for both luxury and sustainability, alongside Msheireb Downtown Doha, which was developed to embody both eco-consciousness and upscale living. 

According to figures released in May, Qatar welcomed over 1.5 million international visitors in the first quarter of 2025, as the country continues to advance its tourism strategy built on major events, strategic partnerships, and diverse travel experiences. 

While slightly below the 1.6 million visitors recorded during the same period in 2024, the latest figures underscore Qatar’s sustained momentum in attracting global travelers.