Saudi Arabia's non-oil private sector experienced its most rapid expansion in over a decade this January, as reported by the Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI).

The PMI climbed to 60.5 from December's 58.4, marking the highest reading since September 2014. A PMI above 50 signifies growth in the sector.

This surge was primarily driven by a substantial increase in new orders, with the New Orders Index reaching 71.1, the highest since June 2011. Contributing factors included favorable economic conditions, the initiation of new infrastructure projects, and a rise in export sales, particularly to Gulf Cooperation Council countries.

Employment levels also saw an uptick.

However, firms faced increased input costs, leading to the most significant rise in output prices in nearly a year.

Despite these cost pressures, business expectations for the coming year were the most optimistic since March 2024. This growth aligns with Saudi Arabia's Vision 2030 initiative, which aims to diversify the economy beyond oil dependence.

In 2024, the country's non-oil activities grew by 4.3%, while oil-related activities declined by 4.5%, resulting in an overall GDP growth of 1.3% for the year.