Saudi non-oil economy improves but Iran war slows growth

Saudi Arabia's non-oil economy showed signs of improvement in September, with the kingdom's headline Purchasing Managers' Index (PMI) rising to 55.3. This marks the strongest rate of improvement in seven months, indicating a near two-point boost in operating conditions.

Despite this positive development, the ongoing Iran war has continued to cast a shadow over business sentiment. The conflict has led to a slowdown in activity growth, which has now reached a five-month low.

The PMI data suggests that while the non-oil sector is experiencing a period of growth, external geopolitical factors are tempering optimism and slowing the pace of expansion.