Growth in the non-oil private sectors of GCC economies accelerated in August, with output and new orders increasing at a faster pace and supplier delivery times improving, according to Purchasing Managers' Index (PMI) data from S&P Global.
The data pointed to greater resilience across the Gulf countries despite continued geopolitical uncertainty. Business confidence for the year ahead also improved in August, reaching a six-month high.
The PMI survey currently covers four of the six GCC economies, excluding Bahrain and Oman.
Output growth accelerates
The composite GCC PMI for August showed a sharp increase in business activity, with growth approaching the pace recorded in February, before conflict escalated in the region.
New orders also rose strongly, while improving business confidence reflected expectations that companies could focus more on sales if regional tensions ease, the S&P Global survey showed.
Saudi Arabia and the UAE were key drivers of the improvement. Non-oil business activity in the two economies expanded at six- and seven-month highs respectively, S&P Global economist Andrew Harker said.
The relationship between PMI readings and official economic data in Saudi Arabia and the UAE suggests third-quarter GDP growth could accelerate following disruptions in the first half of 2026, Harker said.
Kuwait also recorded a further improvement, with non-oil output rising for a second consecutive month in August at its fastest pace since February. Companies in the country had faced disruptions earlier in the year following the closure of airspace and shipping routes.
Qatar was an exception to the broader improvement, with non-oil output declining again in August as cost pressures increased.
Supplier delivery times improve
Supplier delivery times across the four economies covered by the survey shortened for a fourth consecutive month in August.
S&P Global said supplier performance improved across all four economies, with companies reporting better availability of materials and logistics services.
Firms also said they had adapted their supply chains to maintain operations, with greater reliance on local suppliers helping them.-TradeArabia News Service
