Al-Markaz: Private Sector Grows for Third Month
Al-Markaz Financial Company report highlights the decline in the Kuwait Stock Exchange index and the growth of the non-oil private sector in Kuwait and Saudi Arabia, with rising oil prices and expectations for the recovery of the Saudi economy.
Translated by Qiyas from الراي — Original source
The monthly report by Kuwait Finance House on markets for October 2026 recorded a 3.7% decline in the Kuwait Stock Exchange’s general index, while the main market index fell by 7% and the first market index dropped by 3%.
On a sectoral level, positive performance was limited to the basic consumer goods sector, which gained 1.8%. The banking sector’s shares declined by 2.6% during October.
Agility Public Warehousing Company led the first market in performance, rising 8.6%, supported by a major asset monetization deal. During the month, an Agility subsidiary finalized an agreement to sell its entire 100% stake in TriStar.
Kuwait’s non-oil private sector continued its growth for the third consecutive month in September, with the S&P Global Purchasing Managers’ Index (PMI) registering 52.4 points, down from 53.6 points in August, when it reached a six-month high. The local credit market rose 6.3% year-on-year in September, supported by broad-based lending growth, including a 5.1% annual increase in household credit and a 6.7% annual rise in corporate credit. Deposits by expatriates also increased by 10.8% annually, while inflation remained contained at 2.2% year-on-year in July. In international debt markets, Kuwait raised $3.25 billion through Eurobond issuance, attracting subscription orders worth $9.1 billion, reflecting strong investor confidence.
Investor sentiment was affected by attacks on commercial ships in the Strait of Hormuz area, with October marking the worst month for such incidents since monitoring began in 2017.
The report noted that the non-oil sector in Gulf countries continued to improve in September, despite the ongoing impact of geopolitical tensions on economic data.
In Saudi Arabia, the non-oil PMI rose to 55.3 points from 53.8 points, marking its strongest reading since February, driven by a sharp increase in new orders, despite a seventh consecutive monthly decline in foreign orders. The UAE’s PMI remained steady at 55.3 points, a 20-month high, while the Dubai PMI rose to 54.5 points. In Qatar, the index fell to 47.3 points, with activity contracting for the eighth consecutive month.
Saudi Arabia announced its 2027 general budget with spending of approximately SAR 1.4 trillion, reducing the deficit to 3.6% of GDP, down from 4.9% in 2026. The Kingdom projected economic recovery with 12.8% growth in 2027, following an estimated contraction of 3.6% in 2026.
The report highlighted that Brent crude oil prices rose 13.6% in October to $117.64 per barrel, trading above $110 per barrel in the second half of the month, near its six-month high.
The report anticipated that investors worldwide would await the results of the U.S. midterm elections on November 3, the Federal Open Market Committee meeting in December, and upcoming inflation and labor market data, seeking indicators regarding the Federal Reserve’s monetary tightening path.
Additionally, third-quarter 2026 corporate earnings, particularly from banks, will provide an indication of profit strength.
