Overview:
Saudi Arabia's non-oil sector demonstrated sustained expansion in August, with the Purchasing Managers Index climbing to 53.8 points—its strongest reading in six months—driven by rising domestic demand. Meanwhile, the government is intensifying investment partnerships with China, hosting international trade exhibitions, and advancing digital infrastructure initiatives. Egypt's monetary supply expanded 17.5 percent annually in July, reaching approximately 15.49 trillion Egyptian pounds.
Details:
The Saudi non-oil economy showed robust momentum as the Purchasing Managers Index rose to 53.8 in August, marking the highest level since February. This expansion reflects strengthening domestic consumption and business activity across services and manufacturing sectors. The improvement arrived following regulatory changes at the Saudi Capital Market Authority, which helped lift equity valuations with the Saudi stock market recording gains exceeding five percent during the month.
Investment and trade partnerships formed a major policy focus. Deputy Investment Minister Dr. Saad Al-Shehrani participated in strategic investment dialogue with China in Shanghai, characterizing the nation as a "strategic investment partner" and emphasizing industrial cooperation in the coming phase. Saudi Arabia participated as guest of honor at China's 26th International Investment and Trade Fair (CIFIT) in Xiamen. Additionally, Jeddah is hosting multiple specialized exhibitions including the Syrian Industries Expo (September 8–11) and Saudi Industry Forum 2026 (from September 14), both designed to expand commercial partnerships and showcase local manufacturing capabilities.
Digitalization initiatives advanced with the Saudi Chambers of Commerce Union and AI-led solutions firm 'Ilm launching the unified digital platform "Tajjar," consolidating commercial chamber services for end-users. The General Authority for Foreign Trade, in cooperation with the Ministry of Industry and Mineral Resources, conducted awareness workshops on World Trade Organization policies and commercial frameworks.
Outlook:
Investors are monitoring whether the non-oil sector's momentum can sustain above 50 on the Purchasing Managers Index, a threshold indicating expansion. Market observers anticipate clarity on oil price trajectories following geopolitical developments, particularly U.S. Treasury Secretary Scott Besnett's projection that crude may decline toward forty dollars per barrel post-Iran tensions resolution.