• The Purchasing Managers' Index rose for the first time in four months
• The backlog of unfinished business index increased for the first time since July 2022
• Employee numbers continue to rise
• Data were collected from November 9 to 23, 2023.

Doha - Qatar: - The latest Purchasing Managers’ Index data issued by the Qatar Financial Center indicated a continued improvement in the commercial activity of non-energy private sector companies in Qatar as the end of 2023 approaches. The growth rates of the production and new orders indicators also increased compared to October 2023. This led to an increase in the amount of unfinished business for the first time in more than a year, despite the increase in employee numbers again. The financial services sector continued to record the highest growth rate among non-energy private sector companies in Qatar in the recent period.

The Qatar PMIs are compiled from responses to survey questions from a panel of approximately 450 non-energy private sector companies. This committee covers several areas, including manufacturing, construction, retail and wholesale industries, as well as services. It also reflects the structure of the non-energy economy, according to official national accounts data.

The Qatar Financial Center's headline PMI is a single-digit composite index that indicates the performance of non-energy private sector companies in Qatar. The headline PMI for Qatar is calculated based on indicators of new orders, production, employment, supplier delivery times and purchased stocks.

The Purchasing Managers' Index recorded an increase from 50.8 points in October 2023 to 51.5 points in November 2023, indicating an improvement in the commercial activity of non-energy-related private sector companies in Qatar for the tenth month in a row and an increase in the growth rate of commercial activity for the first time since July 2023.

Overall business activity of non-energy private sector companies in Qatar rose again in November 2023. The production index has also continued to grow monthly since July 2020, with the exception of a slight decline recorded in January after the conclusion of the FIFA World Cup Qatar 2022™. The overall rate of business activity growth has increased since October 2023, with the manufacturing sector recording the fastest growth rate.

New orders rose for the tenth straight month in November, with commodity producers and construction companies in particular recording strong sales. The overall rate of growth in new orders rose for only the second time in six months.

High demand in November led to an increase in the unfinished business rate for the first time in sixteen months. This increase contributed to pressure on the production capabilities of Qatari companies, despite the rise in employee numbers again.

Supply chains continued to improve in November 2023, with supplier delivery times for production inputs reduced for the nineteenth consecutive month. Qatari companies intensified purchasing activities for production requirements for the ninth month in a row, at the fastest rate in four months, with the aim of completing the high backlog. As a result, input stocks rose for the first time in three months.

Overall cost pressures on Qatari companies rose slightly in November after declining in October 2023. However, input price inflation was relatively weak, with slight increases in staff and non-staff costs. Prices of goods and services generally stabilized in November 2023 after rising in September and October of the same year.

Financial services

The financial services sector remains the best performer in November

• The growth rate of commercial activity for financial services companies remains higher than other sectors

• New business records its lowest rise in more than a year

• Input prices are witnessing the fastest rise since January 2023

Qatari financial services companies recorded an increase in overall business activity in November. The seasonally adjusted business activity index for the financial services sector recorded 54.7 points in November 2023, the lowest in more than two years but higher than the average of 52.5 points recorded in non-energy private sector companies in Qatar.

The overall business activity growth rate remained strong despite the lowest increase in new business in more than a year. However, the level of demand was generally strong and above average for non-energy private sector companies in Qatar and the business outlook for financial services companies improved for the next 12 months. The employment index in financial services companies also rose for the eighth month in a row.

As for prices, average costs of production inputs rose at the fastest rate since January 2023, while price inflation declined.

Mr. Yousef Mohammed Al Jaidah, CEO of the Qatar Financial Center Authority, commented: “The rise in the Purchasing Managers’ Index is positive news as the end of 2023 approaches, which reflects the high growth rates of the new orders and production indicators. The performance of the financial services sector in particular remained the most outstanding. The average Purchasing Managers' Index from the beginning of 2023 to date is 52.6 points, which indicates a weaker rate of economic activity compared to last year, that is, during the period preceding the start of the FIFA World Cup Qatar 2022™, but it remains higher than the long-term average index of 52.3 points.

The rise in unfinished business for the first time in more than a year indicates increased pressure on companies' production capabilities. This will encourage more investments in conjunction with the increase in customer numbers and companies offering advanced products and services to the market. The increase in unfinished business in November 2023 was accompanied by an increase in employee numbers, growth in purchasing activities, and the inventory of production supplies.

Inflationary pressures remained within control, with a slight increase in the prices of production inputs and stable prices of goods and services in general in the recent period.”

#Government data
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About Qatar Financial Centre

The Qatar Financial Center was established to operate within the country and is located in the city of Doha, where it provides a distinguished business platform for companies wishing to establish and carry out their activities in Qatar or the region in general. The Qatar Financial Center also has a special legal and regulatory framework, a tax system, and a well-established business environment that allows foreign ownership of up to 100%, the repatriation of profits at a rate of 100%, and a corporate tax at a competitive rate of 10% on profits from local sources.

The QFC welcomes a wide range of financial and non-financial services companies.

For more information about the permitted activities and advantages of doing business under the umbrella of the Qatar Financial Centre, please visit qfc.qa.

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