Fastest non-energy private sector employment rise since June 2022

The aggregate activity and new orders indicators record strong growth rates

The outlook for business activity improves in September

Data were collected from September 12 to 22, 2023.

Doha - Qatar: The latest data from the Purchasing Managers’ Index study issued by the Qatar Financial Center indicated a strong and stable growth in the commercial activity of non-energy private sector companies in Qatar in the month of September, as production indicators and new orders returned to an increase, while the employment index rose at a rate It is the fastest since June 2022 and the outlook for business activity has improved for the next 12 months. Cost pressures remained moderate, while selling prices for goods and services rose for the first time in five months.

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 fell slightly from 53.9 points in August to 53.7 points in September, indicating further improvement in the business activity of non-energy private sector companies in Qatar. The latest reading was higher than the average index recorded during the year 2023 so far, which amounted to 53.0 points, and higher than the long-term trend level since 2017, which amounted to 52.4 points. The Purchasing Managers' Index recorded close readings, ranging from 53.7 points to 55.6 points since March 2023, indicating stable and strong economic growth.

Non-energy private sector companies intensified hiring activities for the seventh consecutive month in September, at the fastest rate since June 2022. Qatari companies indicated the efforts made to attract experienced and highly qualified employees. Three out of four sectors subject to monitoring recorded a significant increase in employee numbers, similar to the financial services sector.

New orders rose for the eighth consecutive month in September, and the growth rate of new orders registered strong stability. The construction sector contributed to significantly improving demand during September.

Overall business activity in non-energy private sector companies recorded new growth in September. The production index has continued to grow monthly for more than three years, with the exception of the decline recorded in January after the conclusion of the FIFA World Cup Qatar 2022™. The recent growth rate in the production index was lower than in the last four months, but remained higher than the study's long-term average.

The outlook for non-energy private sector companies in Qatar for the next 12 months remained positive in September. Manufacturing and construction companies provided the most positive forecasts for business activity over the coming year.

Purchases of production inputs rose for the seventh consecutive month in September, and supply chains continued to improve as a result of the improvement in the average lead time for delivery in a series of increases that extended to a record seventeenth month in a row. The stock of production inputs stabilized due to Qatari companies managing their stock levels efficiently.

Cost pressures were moderate in September, with price indices in the four sub-sectors reading above the neutral level of 50.0 points. The prices of goods and services rose for the first time in five months at the highest level, with the manufacturing sector ranking first.

Financial services

Financial services companies are intensifying recruitment activities

• The employment index in financial services companies recorded the highest reading in twenty-three months, reaching 54.2 points

• The growth rate in business activity and new orders in the financial services sector is rising significantly

• Financial services prices fell for the third time in four months

Qatari financial services companies intensified their recruitment activities at the highest rate in September 2023, as the rate of job creation recorded the highest level in almost two years. The employment index recorded its highest reading in 23 months, reaching 54.2 points, which is much higher than the study's long-term average of 52.2 points.

Overall business activity and new orders in the financial services sector grew at notable rates in September 2023, albeit at slightly lower rates since August 2023, while the outlook for business activity over the next 12 months improved.

Data for September 2023 indicated a decrease in fees for financial services companies in Qatar, which is the third decrease in fees in four months. Average input costs decreased slightly.

Mr. Yousef Mohammed Al-Jaida, CEO of the Qatar Financial Center Authority, commented: “The Purchasing Managers’ Index maintained a steady pace in September, recording 53.7 points, indicating further improvement in the business activity of non-energy private sector companies. The growth rate declined during all months.” The third quarter was slightly higher than the second quarter of 2023, but it remained well above the long-term trend at the date of the study, which began six and a half years ago.

While production indicators and new orders continued to rise at strong rates, the employment index recorded the best performance in September, as the growth rate of employment activities was the highest since mid-2022. At the sub-sector level, the construction sector showed signs of recovery after twelve months of calm. New orders rose significantly, outpacing other sub-sectors in September.

The latest GDP figures indicate a correction in the Purchasing Managers’ Index after the conclusion of the FIFA World Cup Qatar 2023™, as the annual growth rate decreased to 2.7% in the first quarter of 2023. The Purchasing Managers’ Index indicated an increase in the growth rate in the second and third quarters of the year. 2023".

#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.

@QFCAuthority | #QFCMeansBusiness

Media Communications Officer

QFC: Rasha Kamaleddine, Marketing and Corporate Communications Department, r.kamaleddine@qfc.qa

For inquiries regarding the report

Qatar Financial Centre: qatarpmi@qfc.qa

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