The private sector declined in Saudi Arabia, the Emirates and Egypt during last February

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  The private sector affected by Corona's closures (France Press)</p><div><p>Data from IHS Markit, the global research institute, showed that the performance of the non-oil private sector in the UAE, Saudi Arabia and Egypt last month was affected by pressure from the repercussions of Corona. 

In a report, today, Wednesday, the Corporation indicated that the unrest increased in the UAE’s non-oil-producing private sector last February, due to the high cases of HIV infection.

The PMI reading in the UAE dropped from 51.2 points in January to 50.6 points in February.

The index remained above neutral due to the sub-component of production, which continued to indicate an increase in business activity.

And a number of companies linked the decline in demand rates to tightening restrictions in areas such as retail and services.

According to the report, new businesses failed to rise for the first time in four months, contributing to a modest increase in production and the steady level of employment largely unchanged.

As for Saudi Arabia, the report indicated that economic conditions in Saudi Arabia continued to improve in February, but the growth rate declined to its lowest level in four months.

The Kingdom’s PMI scored about 53.9 points in February, compared to 57.1 points in the previous month.

Last week, it also suspended entry to the Kingdom for the purposes of Umrah and visiting the Noble Prophet’s Mosque “temporarily”, to provide maximum protection from the Corona virus.

In Egypt, the Foundation said that the economic conditions of the Egyptian private sector, which is not producing oil, declined for the third month in a row last February, amid declining production and new business.

It indicated that the pace of contraction of the private sector in Egypt has marginally decreased since last January, supported by the record expansion in exports.

The main PMI reading for Egypt increased from 48.7 points in January to 49.3 points in February.

The decline in the index, which measures the performance of the non-oil private sector, below 50 points, means that there is contraction, while surpassing this level indicates expansion.

The report noted the rise in the prices of raw materials and freight and a strong increase in the costs of production inputs, but production prices rose only slightly.

The PMI is based on five main pillars, which are new orders, inventory levels, production, supplier delivery volume, and employment and work environment.

(Anatolia, the new Arab)





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