Overview:
Saudi Arabia's non-oil private sector recorded its strongest expansion in seven months during September, driven by improved domestic demand and increased sales. Concurrently, crude oil prices surged past USD 101 per barrel amid persistent concerns over Middle Eastern supply disruptions. The General Authority for Food Security awarded the fifth wheat import contract of 2026, while the Saudi Ports Authority launched a multi-purpose terminal management system. The Saudi Public Investment Fund outlined its sport investment strategy at London Leaders Week 2026.
Details:
Oil markets maintained upward momentum as Brent crude exceeded USD 101 per barrel on Thursday, with futures gaining 93 cents, or 0.92 percent. Supply concerns centered on escalating attacks on shipping traffic in the Gulf and the Strait of Hormuz, prompting market participants to reassess regional logistics risks. The Organization of the Petroleum Exporting Countries Plus, comprising seven members including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, decided to maintain production levels for November 2026 without change.
The non-oil private sector's expansion to its fastest pace since February reflects strengthening economic momentum beyond hydrocarbons. Gold prices recovered modestly from two-month lows, trading amid elevated expectations for upcoming Federal Reserve monetary policy guidance. The Saudi Stock Exchange index closed higher at 10,589.95 points with trading volume reaching 4.1 billion riyals, while the parallel market index Nomu rose 48.54 points to 21,784.97.
The General Authority for Food Security completed procurement procedures for 683,000 tonnes of wheat from European Union sources, as domestic self-sufficiency initiatives continued. Point-of-sale transactions exceeded 273.9 million operations during the week of September 27 to October 3, totaling approximately 16.5 billion riyals.
Outlook:
Investors are monitoring global oil supply rebalancing, which Aramco CEO Amin Nasser estimated may require two years for inventory restoration. The World Bank projects Saudi Arabia's economy will expand by 7.9 percent in 2027, raising prior estimates by three percentage points, signaling confidence in sustained non-oil diversification efforts.