Saudi non-oil growth eased slightly but remained robust at 4.3% in Q3 from 4.9% Q2, led by a continued strong expansion in the wholesale, retail, restaurants and hotels (5.8%), transport and storage (4.5%) and construction (4.6%) sectors.  

 

Overall, the economy returned to growth in Q3. The economy grew by 2.8% y/y in Q3 from -0.3% the previous quarter and four consecutive quarters of negative growth, said a research report from the National Bank of Kuwait (NBK). 

 

The pick-up was thanks to oil sector growth stabilising at 0% (from -8.9% in Q2) after the consistent steep contractions seen since Q2 2023 as the effect of last year’s oil production cuts fades as expected. Meanwhile government activities grew by 3.1%. 

 

In terms of expenditures, robust growth in consumption and investment continued to be the main drivers of growth, at 4.7% and 4.5%, respectively. Recent monthly indicators point to accelerated non-oil activity in the fourth quarter, supported by the hosting of business and entertainment events, continued strong investment levels, and growth in tourism.

 

Egypt

Government may reach an agreement to lease an LNG regasification unit starting in 2H2025. The potential agreement will be between US-based New Fortress Energy and the Egyptian Natural Gas Holding Company. 

 

The LNG unit is currently docked in Jordan and could head to Ain Sokhna port following the agreement. The expected duration and cost of the lease have not been announced yet. If the agreement materialises, it will be the second terminal that Egypt utilises following the Norwegian floating storage and regasification unit that was in Ain Sokhna in June. The new unit will add a gasification capacity of 750 mn cf/d, which will help the Egyptian government keep up with the growing demand for energy (mostly gas), especially amid the drop in local natural gas production. The news about the possible agreement confirms our earlier analysis that importing LNG will be a medium-to-long term strategy rather than a short-term fix.--TradeArabia News Service