Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows
Employment numbers decreased in November, their first reduction after four months of expansion. Shutterstock
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Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

CAIRO: Conditions in Egypt’s non-oil private sector declined more slowly in November as output and new orders dropped at a slower pace, according to the latest Purchasing Managers’ Index (PMI) data from S&P Global.

The PMI edged up to 49.2 in November from 49 in October, inching closer to the 50 threshold that separates growth from contraction. Despite the improvement, the index still indicated a marginal downturn in business conditions.

“Declines in output and new business slowed across the non-oil sector in November, indicating that business conditions are close to stabilising,” said S&P economist David Owen.

Output levels fell for the third consecutive month, attributed to persistently weak customer demand. However, some firms reported a pick-up in new work, hinting at signs of recovery.

The output sub-index improved to 49.1 from 47.9 in October, while the new orders sub-index climbed to 48.7 from 47.6.

The manufacturing sector showed modest growth in goods orders, which helped offset declines in construction, wholesale & retail, and services.

Employment numbers decreased in November, their first reduction after four months of expansion. Companies cited reduced sales volumes and weaker confidence as reasons for not replacing voluntary leavers.

Input prices, at 55.9, rose at the slowest pace since July, with lower wage growth contributing to a four-month low in cost inflation. However, purchase prices continued to climb, partly due to a stronger US dollar.

Firms remained cautious about future business activity. Output expectations for the year ahead, at 50.5, was the second-lowest the series’ history.


Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – prices nudge higher ahead of OPEC+ meeting
Updated 20 sec ago
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Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – prices nudge higher ahead of OPEC+ meeting

SINGAPORE: Oil prices nudged higher on Tuesday but remained within a narrow trading range, as traders awaited the outcome of an OPEC+ meeting later this week.

Brent crude futures rose 31 cents, or 0.4 percent, to $72.14 a barrel by 10:04 a.m. Saudi time, after dropping 1 cent in the previous session. US West Texas Intermediate crude climbed 26 cents, or 0.4 percent, to $68.36, following a 10 cent gain on Monday.

Sources from the producer group said it will extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting.

“Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC+ production cuts till April,” Goldman Sachs analysts said in a note.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been looking to unwind production cuts by the first quarter of 2025. However, the outlook for surplus supply has put pressure on prices. The group accounts for about half of the world’s oil production.

“I think there’s no other option but to defer it,” Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that it could only be for just a month or so as there is a lot of pressure from participating nations to ramp up output.

Amid a lack of bullish catalysts and lacklustre demand, Sachdeva expects oil prices to trade in a limited range with a bias toward the downside.

The consumption outlook remains weak with China’s crude imports expected to peak as soon as next year as transport fuel demand begins to decline for the world’s top crude buyer, researchers and analysts said, further exacerbating the gap between demand and supply.

Concerns that the US Federal Reserve may not cut rates at its December meeting have also capped oil prices, offsetting positive signals from China, where the purchasing managers’ index rose to a seven-month high in November.

Oil prices on both sides of the Atlantic fell more than 3 percent last week.

Federal Reserve Governor Christopher Waller, whose views are often a bellwether for US monetary policy, said he was inclined to support another rate cut this month, but Atlanta Federal Reserve President Raphael Bostic maintained that the Fed still needed to consider upcoming jobs data.

In the Middle East, holes continued to appear in a US-brokered ceasefire between Israel and militant group Hezbollah, with nine people killed in strikes on two southern Lebanese towns shortly after Hezbollah fired missiles on an Israeli military position in the disputed Shebaa Farms area on Monday.

US crude oil stockpiles are expected to have fallen last week while gasoline and distillate inventories likely rose, a preliminary Reuters poll showed on Monday. The American Petroleum Institute and Energy Information Administration will release weekly data on Tuesday and Wednesday, respectively.


Saudi PMI hits 59 in November as non-oil sector grows 

Saudi PMI hits 59 in November as non-oil sector grows 
Updated 03 December 2024
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Saudi PMI hits 59 in November as non-oil sector grows 

Saudi PMI hits 59 in November as non-oil sector grows 
  • Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns
  • Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads

RIYADH: Saudi Arabia’s non-oil private sector ended November with robust momentum, as business activity expanded at its fastest pace since July 2023, latest business survey showed. 

The Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 59.0 in November from 56.9 in October, marking the fourth consecutive monthly increase, buoyed by accelerated growth in new orders, purchasing activity, and staff recruitment.  

The headline PMI — calculated as a weighted average of sub-indices covering new orders, output, employment, supplier delivery times, and stock levels — reflected a substantial improvement in operating conditions, with all five components contributing to the uptick. 

Naif Al-Ghaith, chief economist at Riyad Bank, said: “The strong growth in Saudi Arabia’s non-oil private sector helped the PMI to reach 59.0 in November, demonstrating the continued success of economic diversification efforts.”  

He added: “This robust expansion, marked by accelerated output and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independently of oil price fluctuations.” 

Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns. New order inflows, including foreign sales, rebounded after a modest pullback in the previous survey period. 

Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads. 

“Employment growth indicates a rising capacity of non-oil sectors to absorb labour, further supporting socioeconomic objectives like increasing national employment,” Al-Ghaith noted. 

Firms ramped up input purchases at the strongest rate since March to build inventories in anticipation of higher sales. However, this strained supply chains, resulting in the slowest improvement in vendor performance in 15 months. 

Inflationary pressures  

The report noted that the sector’s rapid expansion brought inflationary pressures to the forefront. Input costs rose at the sharpest pace in over four years, driven by higher wages, geopolitical tensions, and increased transport costs. Wage inflation hit a ten-year high, while firms raised their selling prices at the fastest rate since January to offset these pressures. 

“Stronger purchasing activity and inventory expansion suggest businesses are gearing up for continued growth in demand,” Al-Ghaith said.  

“This performance aligns with broader economic trends showing Saudi Arabia’s ability to attract foreign investments, boost consumer confidence, and enhance trade partnerships,” he added. 

The strong November PMI underscores the resilience of Saudi Arabia’s non-oil economy despite global uncertainties. Companies remain optimistic about future growth, supported by government initiatives to diversify the economy under Vision 2030. 

“Maintaining this momentum will be essential to achieving Vision 2030 goals and ensuring long-term economic growth,” Al-Ghaith concluded.


Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group
Updated 02 December 2024
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Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

JEDDAH: Saudi Arabia is poised to bolster its healthcare system through a strategic new partnership with China’s BGI Group. The collaboration will focus on localizing medical services, improving supply chains, and advancing preventive care to better serve the Kingdom’s population.

On Dec. 2, the Public Investment Fund’s fully owned National Unified Procurement Co. signed a memorandum of understanding with Shenzhen-based BGI Group. The partnership is aimed at enhancing healthcare cooperation and leveraging BGI’s cutting-edge expertise to support Saudi Arabia in delivering comprehensive, high-quality healthcare services to its citizens.

The signing ceremony, held in China, was attended by Saudi Minister of Health Fahad bin Abdulrahman Al-Jalajel, who is on an official visit to the country.

The agreement aligns with the goals of Saudi Arabia’s Healthcare Sector Transformation Program, which aims to modernize and integrate the Kingdom’s medical system.

The transformation effort prioritizes innovation, financial sustainability, and disease prevention, while expanding access to healthcare, enhancing e-health services, and improving care quality in line with international standards.

As part of the MoU, Nupco and BGI will explore opportunities for direct collaboration in developing integrated logistics services for biological samples. This will help strengthen the infrastructure of Saudi Arabia’s healthcare sector.

Al-Jalajel emphasized that Saudi Arabia is emerging as a global hub for digital health and innovation, with the partnership with BGI underscoring the Kingdom’s commitment to addressing global health challenges.

The minister’s visit to China is part of broader efforts to deepen health cooperation and reinforce Saudi Arabia’s position as a global center for health innovation — aligning with both the Health Transformation Program and Vision 2030.

This MoU follows a visit in November by a Nupco delegation to BGI Genomics. During the visit, the group, including Nupco CEO Fahad Al-Shebel, was introduced to BGI Genomics’ innovative technologies in proactive disease prevention, multi-omics research, and smart laboratory solutions. BGI’s leadership, including CEO Yin Ye and CEO of BGI Genomics Zhao Lijian, welcomed the delegation, marking a significant milestone in the two organizations’ growing collaboration.

The visit also reinforced the ongoing strategic partnership between the two companies, which began with efforts to combat the COVID-19 pandemic.

During discussions, both sides expressed a shared commitment to expanding cooperation in areas like genetic testing, laboratory expansion, and medical sample transportation — all aimed at advancing life sciences.

BGI highlighted that both parties agreed to enhance localized genetic testing services in Saudi Arabia, contribute to the Kingdom’s public health and precision medicine initiatives, and make significant contributions to improving public health outcomes.

This partnership marks a key step in the Kingdom's healthcare transformation journey, reinforcing its vision to provide world-class medical services while advancing technological innovation in the sector.


Saudi Green Initiative Forum to focus on climate resilience and sustainability 

Saudi Green Initiative Forum to focus on climate resilience and sustainability 
Updated 02 December 2024
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Saudi Green Initiative Forum to focus on climate resilience and sustainability 

Saudi Green Initiative Forum to focus on climate resilience and sustainability 

RIYADH: Nature-based solutions for climate resilience and community adaptation will take center stage at the fourth edition of the Saudi Green Initiative Forum, set to run from Dec. 3 to 4 in Riyadh. 

The event, held alongside the 16th Conference of the Parties to the UN Convention to Combat Desertification, aims to address pressing global environmental challenges, including land rehabilitation, carbon reduction innovations, and sustainable financing. 

The forum will also address the role of natural solutions in helping communities adapt to climate change and the need to enhance efforts to preserve the Kingdom’s rich biodiversity, according to a statement. 

This aligns with the UNCCD’s goal of restoring 15 billion hectares of land by 2030, as a recent UN study indicates that 90 percent of the Earth’s soil is at risk of degradation by 2050. 

During the Riyadh COP16 conference, the SGI exhibition will open its doors to visitors to learn about the Kingdom’s efforts in reducing emissions, planting trees, and protecting the environment through innovative, interactive experiences. 

The exhibition will provide valuable insights into the Kingdom’s qualitative initiatives, focusing on three key goals – reducing carbon emissions by 278 million tons annually by 2030, planting 10 billion trees, and protecting 30 percent of Saudi Arabia’s land and marine areas.

It will also host the “Saudi Green Initiative Dialogues” series, launched in 2023 and returning this year with participation from international experts. The discussions will cover the latest trends and innovations in climate and sustainability, fostering new opportunities for a more sustainable future. 

Launched in 2021, the SGI aims to engage all sectors of society in climate action and support Saudi Arabia’s goal of achieving net zero emissions by 2060. 

The initiative underscores the Kingdom’s climate efforts, addressing challenges like rising temperatures, low rainfall, sand and dust storms, and desertification, all aimed at enhancing quality of life and building a sustainable future for generations to come. 

Saudi Arabia’s hosting of COP16 highlights its commitment to environmental protection. As the largest multilateral conference the Kingdom has ever hosted, it mobilizes global cooperation to drive the necessary changes and actions for the future of the planet. 


Private sector must be part of the solution in Saudi land conservation, says top official

Private sector must be part of the solution in Saudi land conservation, says top official
Updated 02 December 2024
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Private sector must be part of the solution in Saudi land conservation, says top official

Private sector must be part of the solution in Saudi land conservation, says top official

RIYADH: The private sector must play a pivotal role in Saudi Arabia’s land conservation efforts, according to the Kingdom’s deputy minister of environment and adviser to the president of COP16, Osama Faqeeha.

Faqeeha shared this message during the COP16 opening press conference on Dec. 2, underscoring the need for businesses to contribute actively to environmental sustainability.

“Businesses can be part of the solution by focusing their investments in infrastructure, integrating drought resilience, sustainable land management, biodiversity protection, and climate resilience into their operations, while also leveraging innovation,” Faqeeha stated.

The deputy minister emphasized that environmental protection must become a core element of business strategy: “That needs to be a visible and tangible financial contribution of the private sector in land conservation.”

Faqeeha highlighted that such investments would bring multiple benefits to businesses, including improved biodiversity, climate resilience, food security, and social well-being.

“The business of exploiting degraded land and then moving to recover virgin land is not sustainable—environmentally, socially, or even for the businesses themselves,” he added.

Faqeeha also warned about the broader impacts of land degradation on business stability: “We are seeing now that land degradation is a major cause of migration and conflict. And, of course, political instability is not good for business, so companies must consider these factors as well.”

His call for greater private sector involvement aligns with Saudi Arabia’s growing environmental initiatives, emphasizing the need for collaboration between government and businesses in addressing pressing ecological challenges.

Faqeeha’s comments reflect a shift toward integrating sustainability into business models, demonstrating that preserving the environment can also protect long-term corporate interests. He stressed that innovative solutions must be scaled up, particularly in light of the significant economic costs associated with land degradation.

During the press conference, Ibrahim Thiaw, the executive secretary of the UNCCD, also urged for a more prominent role for the private sector in combating global land degradation, stressing that it is a major driver of the crisis.

“We are very happy to have high-level participation from the private sector at COP16,” Thiaw said. “This is not only for governments to negotiate among themselves, but also to engage the private sector because the number one driver of land degradation in the world is food systems, mining, and cotton production for fashion.”

Thiaw commended Saudi Arabia for its leadership in addressing drought and land degradation, especially in the world’s most vulnerable regions.

“I would like to thank the government of Saudi Arabia for sparking this movement, which will likely take us the next 10 years or more to reverse the tide on drought,” he noted.

The initiative, Thiaw explained, targets the 80 poorest countries, as well as lower-middle-income nations, to help them transition from reactive drought responses to proactive measures like early warning systems and agricultural resilience.

Highlighting the urgency of the issue, Thiaw noted: “We have already degraded 40 percent of the land in the world.” He stressed that restoring 1.5 billion hectares of degraded land could help produce necessary food, provide clean water, and ensure breathable air.

Thiaw also pointed out the need for increased financing, particularly from the private sector.

“Only 6 percent of land restoration funding comes from the private sector,” he said. “We need the private sector to invest in their land and business to secure their production and ensure their activities are sustainable in the long run.”

As the global population grows, Thiaw warned that food systems must evolve. “We need to produce twice as much food by 2050 to feed a growing population and middle class,” he stated.

Thiaw identified addressing drought, land restoration, and financing as key priorities in the fight against global land degradation.

Prof. Johan Rockström, director of the Potsdam Institute for Climate Impact Research, also spoke about the goals of COP16, anticipated outcomes, and insights drawn from the Special Report on Land: Planetary Boundaries: Confronting the Global Crisis of Land Degradation.

The report provides practical suggestions for promoting sustainable land use and food production to protect human health and the environment.

“Humanity is at a critical juncture, and for the first time, we need to consider the real risk of destabilizing life support on the entire planet,” Rockström said.

He noted that current trends in global warming could push temperatures over 3°C within 75 years, a scenario he described as catastrophic. “This is a pathway that unequivocally leads to disaster. There’s absolutely no scientific evidence that we can support a world population under such conditions,” he added.

The global land area affected by degradation, which spans approximately 15 million sq. km, is increasing by about 1 million sq. km annually.

Rockström stressed the critical role of land in reversing this trend. “Land is a fundamental precondition that will determine whether or not we can turn this around or continue down an unstoppable path toward even worse warming levels,” he said.

He outlined the devastating consequences of continued land degradation, warning: “We are losing 1 million sq. km of healthy land each year.” This loss, he noted, is pushing the planet toward disaster.

“Unsustainable land management—how we manage agriculture, forestry, and land use—is the single largest emitter of greenhouse gases in the global economy, contributing roughly 23 percent of emissions,” he said. However, intact ecosystems still absorb 25 percent of carbon dioxide emissions, creating a delicate balance.

“The planet is just barely balancing,” Rockström cautioned. “For every day we lose more intact land, we lose that capacity, and the teetering balance will collapse.”