RIYADH: Growth in Kuwait’s non-oil private sector accelerated in October, while Egypt’s remained in contraction for a 10th consecutive month as Qatar’s non-energy sector saw its sharpest downturn since May.

According to the latest Purchasing Managers’ Index reports by S&P Global, Kuwait’s PMI rose to 52.9 in October, up from 52.4 in September, marking a fourth consecutive month above the 50-point threshold that separates growth from contraction.

Egypt’s PMI held at 47.2, while Qatar’s fell to 46.3 from 47.3 in September, signalling an eighth consecutive month of contraction in its non-energy private sector.

The readings come as the conflict in the Middle East continues to disrupt regional economic activity, trade routes and supply chains.

The World Bank’s October 2026 regional economic update forecast that output across the Middle East, North Africa, Afghanistan and Pakistan would contract by 2.1 percent in 2026, compared with growth of 3.3 percent in 2025.

Gulf Cooperation Council economies are projected to shrink by 4.3 percent this year, with the closure of the Strait of Hormuz disrupting energy exports and weighing on broader economic activity.

Kuwait’s business activity strengthens

Kuwait’s non-oil private sector continued to recover in October, with output and new orders rising more sharply.

New order growth reached its fastest pace since February, while new export orders also expanded at a faster rate, supported by additional business from customers in neighboring countries.

“The recovery in Kuwait's non-oil private sector solidified in October, with companies increasingly able to secure new orders and boost output,” said Andrew Harker, economics director at S&P Global Market Intelligence.

He added that firms responded to greater workloads by ramping up purchasing and inventory holdings, although at least part of this stockbuilding was in an effort to avoid future price rises as inflationary pressures strengthened in the latest survey period.

Egypt’s private sector faces mounting cost pressures

Egypt’s non-oil private sector continued to contract in October, with output and new orders falling at their fastest rates in four months as businesses faced weaker client demand, higher prices and reduced purchasing power.

David Owen, principal economist at S&P Global Market Intelligence, said the PMI was partly supported by longer delivery times and a build-up of stocks, both of which reflected supply disruption and inflation concerns rather than stronger demand.

Owen added: “Cost pressures intensified, with input price inflation rising to its highest since May. Egyptian non-oil firms pointed to higher import, energy and shipping costs, as well as a weaker exchange rate against the US dollar, and raised their selling prices at the quickest rate since June as a result.”

He said the recent easing in official inflation may prove “short-lived,” making things harder for policymakers.

Qatar’s non-energy sector downturn deepens

Business activity in Qatar’s non-energy private sector declined at its fastest pace in seven months, while new business fell for an 11th consecutive month and at the quickest rate since June.

Companies cited weak demand, competition, project completions and uncertainty, with construction recording the steepest decline in activity.

The downturn also affected employment, which fell for the first time since July 2024.

The rate of job shedding was the strongest since December 2022, although it remained moderate overall. Businesses also reduced their purchasing activity, while inventories declined.

Trevor Balchin, economics director at S&P Global Market Intelligence, said: “The only real positive to take from the latest set of results was a broad-based easing in cost pressures.

“Both purchase prices and wages rose more slowly in October, taking the overall rate of input price inflation down to a six-month low. Nevertheless, it remained relatively high, and firms raised their own charges at the fastest rate in nearly four years.”