The Kingdom of Saudi Arabia has seen an increase in the business activity at the fastest pace since 2017 according to the most recent figures for the first half of the year.
The Purchasing Managers Index (PMI) survey compiled by IHS Markit rose to 56.4 in May from 55.2 in April which is the highest level since January 2021.
The (business) conditions have improved since Saudi Arabia has opened up the market to foreign investors and implemented a number of reforms. The efforts in economic diversification, introduction of new labour laws and reduction of bureaucracy are undoubtedly contributing factors. In addition, the country was able to ease the restrictions related to the pandemic due to the successful vaccination drive.
The expectations of businesses in Saudi Arabia have improved and reached the highest levels in three months amid hopes for a global recovery from the pandemic over the remainder of 2021. Further, it is reflected in the customer orders which rose at the quickest rate in four months and the export orders which accelerated at the fastest pace since 2015. The employment situation in the GCC’s largest economy gained momentum last month as some of the biggest players in the private sector expanded their capacity.
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