Saudi Arabia's Non-Oil Sector Shows Strong Growth as PMI Hits 60.2
The Purchasing Managers' Index (PMI) for Saudi Arabia's non-oil economy climbed to 60.2 in October, signaling strong business growth momentum and the second-highest level in over a decade.
Riyadh: Saudi Arabia's non-oil economy accelerated in October, with the Purchasing Managers' Index climbing to 60.2, its second-highest level in more than a decade, indicating robust growth momentum.
The latest survey by Riyad Bank and S&P Global showed significant improvements in operating conditions across the Kingdom's private sector, driven by solid demand, rising employment, and substantial output growth.
The October reading, up from 57.8 in September, underscores the sustained momentum of the non-oil economy as Vision 2030 reforms continue to promote diversification away from oil revenues.
Saudi Arabia’s Minister of Economy and Planning, Faisal Alibrahim, projected that the Kingdom's gross domestic product (GDP) is expected to expand by 5.1 percent in 2025, supported by continued growth in non-oil activities.
Naif Al-Ghaith, chief economist at Riyad Bank, commented on the latest report: "Saudi Arabia’s non-oil private sector recorded a solid improvement in business conditions in October, with the PMI rising to 60.2, marking one of the strongest readings in over a decade".
He further noted that the acceleration was driven by broad gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy.
The report also indicates a strong start to the final quarter of the year, supported by both domestic and external demand.
New orders received by non-oil companies accelerated for the third consecutive month in October, with 48 percent of surveyed firms reporting higher sales.
Companies attributed this growth to improving economic conditions, an expanding client base, and increased foreign investment.
Output and employment also expanded sharply during the month, with job creation rising at the fastest pace in nearly 16 years.
Al-Ghaith highlighted the persistent rise in new export orders as a testament to the growing competitiveness of Saudi firms and the progress achieved under ongoing diversification initiatives.
He noted that the increase in demand encouraged firms to expand production and workforce capacity, resulting in the highest rate since 2009.
Purchasing activity and inventories also increased, while suppliers' delivery times continued to improve, reflecting efficient coordination and resilient supply chains.
Input costs for non-oil firms saw a sharp rise in October, primarily driven by wage increases from salary revisions and bonuses.
Despite this, companies remained optimistic, citing strong market demand, ongoing project work, and government investment initiatives.
The optimism is underpinned by solid domestic demand and the momentum of ongoing projects, with confidence remaining strongly positive, reflecting expectations for continued economic expansion and the strength of the non-oil private sector.
The latest survey by Riyad Bank and S&P Global showed significant improvements in operating conditions across the Kingdom's private sector, driven by solid demand, rising employment, and substantial output growth.
The October reading, up from 57.8 in September, underscores the sustained momentum of the non-oil economy as Vision 2030 reforms continue to promote diversification away from oil revenues.
Saudi Arabia’s Minister of Economy and Planning, Faisal Alibrahim, projected that the Kingdom's gross domestic product (GDP) is expected to expand by 5.1 percent in 2025, supported by continued growth in non-oil activities.
Naif Al-Ghaith, chief economist at Riyad Bank, commented on the latest report: "Saudi Arabia’s non-oil private sector recorded a solid improvement in business conditions in October, with the PMI rising to 60.2, marking one of the strongest readings in over a decade".
He further noted that the acceleration was driven by broad gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy.
The report also indicates a strong start to the final quarter of the year, supported by both domestic and external demand.
New orders received by non-oil companies accelerated for the third consecutive month in October, with 48 percent of surveyed firms reporting higher sales.
Companies attributed this growth to improving economic conditions, an expanding client base, and increased foreign investment.
Output and employment also expanded sharply during the month, with job creation rising at the fastest pace in nearly 16 years.
Al-Ghaith highlighted the persistent rise in new export orders as a testament to the growing competitiveness of Saudi firms and the progress achieved under ongoing diversification initiatives.
He noted that the increase in demand encouraged firms to expand production and workforce capacity, resulting in the highest rate since 2009.
Purchasing activity and inventories also increased, while suppliers' delivery times continued to improve, reflecting efficient coordination and resilient supply chains.
Input costs for non-oil firms saw a sharp rise in October, primarily driven by wage increases from salary revisions and bonuses.
Despite this, companies remained optimistic, citing strong market demand, ongoing project work, and government investment initiatives.
The optimism is underpinned by solid domestic demand and the momentum of ongoing projects, with confidence remaining strongly positive, reflecting expectations for continued economic expansion and the strength of the non-oil private sector.
