IHS Market data showed signs of recovery of the non-oil private sector in the 3 largest economies in the Arab countries during the month of May, with governments starting to open their economies and easing the procedures for closing, with companies taking other steps to reduce spending such as reducing wages and employment.
According to the report issued by the Foundation for the Kingdom of Saudi Arabia, some companies considered that easing the closing procedures helped reduce the decline in May, along with the efforts made to enhance commercial operations via the Internet.
The report on Egypt showed that the overall cost burdens decreased for the first time since the start of monitoring the activity of non-oil private sector companies, as wages cuts were accompanied by a marginal increase in only the prices of purchases in May. This may be important as companies look to keep production prices low when the economy recovers with the potential for a difficult market environment.
In the UAE, the report showed that the change in curfew hours in May helped reducing the impact on the UAE economy.
Source (Al-Arabiya.net website, Edited)
