Saudi PMI Rises to 55.3, Matching the UAE, as Kuwait Extends Expansion and Egypt Adds Jobs
Saudi Arabia’s non-oil private sector improved at its fastest pace since February in September, with the Riyad Bank Saudi Arabia PMI rising to 55.3 from 53.8, level with the UAE, whose index was unchanged at August’s 20-month high of 55.3, according to surveys compiled by S&P Global. Kuwait’s PMI stayed above the 50.0 mark for a third month at 52.4, and Egyptian firms raised employment for a second straight month as the Egypt PMI eased to 47.2. In Qatar, the PMI averaged 47.8 in the third quarter, above the 46.6 of each of the first two quarters, and companies kept adding staff in a run of job creation that began in August 2024.
The Gulf readings
September 2026 PMIs
| Economy | September | August | Change |
|---|---|---|---|
| Saudi Arabia | 55.3 | 53.8 | +1.5 |
| UAE | 55.3 | 55.3 | 0.0 |
| Dubai | 54.5 | 54.1 | +0.4 |
| Kuwait | 52.4 | 53.6 | -1.2 |
| Qatar | 47.3 | 47.6 | -0.3 |
| Egypt | 47.2 | 49.6 | -2.4 |
Seasonally adjusted headline PMIs for the non-oil private sector, non-energy in Qatar, published 5 October 2026 by S&P Global (Saudi Arabia sponsored by Riyad Bank); a reading above 50 signals an improvement on the previous month. Changes are our calculation.
In Saudi Arabia, new orders rose at the quickest rate since February, outstanding work increased for the first time since May, growth in input purchases quickened to a seven-month high and employment expanded solidly, while output growth eased to a five-month low and export orders fell for a seventh month at a much softer pace. Selling charges rose at the second-fastest rate in more than six years. Naif Al-Ghaith, the sponsoring bank’s chief economist, said the rise in employment appears to be associated not only with current demand but also with businesses expanding their productive capacity.
In the UAE, output grew at the fastest rate in seven months, new export business rose at the sharpest pace since November 2024 and employment rose again after a fall in August, while output prices increased at the steepest rate since May 2011. The Dubai index rose to 54.5, its strongest improvement in seven months, with activity growing at the fastest pace of 2026 and new business from abroad expanding at the strongest rate in two years. In Kuwait, output and new orders increased for a third month, though more slowly than in August, new export orders rose at the fastest rate in seven months, input buying matched the joint-strongest rise on record and business confidence reached its highest since February; the compiler’s economics director Andrew Harker said the third quarter should see solid growth of non-oil GDP, based on the index’s historical relationship with official data.
In Qatar, the index eased to 47.3 from 47.6. The year-ahead outlook improved from August, input price inflation eased for the first time in 2026 and firms kept increasing their workforces, while output and new orders fell at faster rates, with the steepest decline in activity in construction, and selling prices rose for a sixth month.
Egypt’s firms hire and stay optimistic
The Egypt PMI eased to 47.2 from August’s seven-month high of 49.6, 1.0 point below its long-run average of 48.2 on our calculation. Employment rose for a second month running, the first back-to-back increase in more than a year, outstanding business grew for a fifth month and firms expected output to rise over the next 12 months, with confidence moderating from August’s more than four-year high. Output and new orders fell, and selling prices rose strongly, while wage inflation slowed to an eight-month low. The survey compiler said the September reading is consistent with annual GDP growth of about 4.3 percent.
What the readings add up to
Three of the five national indices sit above 50. The four Gulf indices average 52.6, unchanged from August, as Saudi Arabia’s 1.5 point rise offset Kuwait’s 1.2 point and Qatar’s 0.3 point declines with the UAE unchanged, and the Saudi, UAE and Kuwait readings average 54.3, up from 54.2, on our calculation. Saudi Arabia and the UAE are each 5.3 points above the 50.0 line, Kuwait 2.4 points and Dubai 4.5 points, on our calculation. Price pressure is the common thread: selling prices rose in all five economies, at the fastest pace since May 2011 in the UAE and the second-fastest in more than six years in Saudi Arabia, while in Kuwait input costs rose at the fastest pace since February and output price inflation ticked lower.
Why it matters: the surveys are a monthly read on September conditions in the region’s non-oil private sectors. They show demand recovering in Saudi Arabia and the UAE, Kuwait’s growth extending into a third month with confidence at a seven-month high, and companies in Egypt and Qatar adding staff with a positive 12-month outlook.
Outlook: the October readings for Saudi Arabia, Kuwait, Egypt and Qatar are due on 3 November and the UAE’s on 4 November, according to the compiler’s release calendar.
Sources: S&P Global, Riyad Bank, The Edge.
