Non-oil business activity in some of the Gulf’s largest economies rebounded in July, according to S&P Global’s latest surveys.
The snapshot of firms’ output, which includes measures like new orders, buying, and hiring, indicated that, as hostilities eased at the start of the month, firms were fast to recover. But renewed Iranian and US strikes and slower traffic through the Strait of Hormuz later in July may undermine the chances of a sustained rebound into August, according to S&P.
Kuwait returned to growth for the first time since the war began, while the UAE recovered from a five-year low in June on renewed export demand and a return to hiring. Saudi Arabia notched a fourth straight month of business expansion, even as confidence slipped on rising costs. Only Qatar continued to contract, although there were signs even there that the impact of the war was easing, according to S&P.
All four economies remain below pre-war levels, hampered by delivery delays, rising costs, and softer export demand. Just 7% of UAE firms and 8% of Saudi firms expect to grow over the coming year.
