Saudi non-oil sector growth remained strong as the private economy continued expanding across industries. The Riyad Bank Purchasing Managers’ Index (PMI) registered 55.6, signaling continued growth in business activity.
Although the figure dipped slightly from the previous reading, it stayed well above the 50 mark, confirming continued private sector expansion. Compared to regional peers, the Kingdom’s non-oil economy showed stronger performance than both the UAE and Kuwait.
Economists highlighted this momentum as evidence of the Kingdom’s economic transformation. The Kingdom’s non-oil economy continues to lead diversification efforts under Vision 2030.
Employment levels also rose sharply. The latest data marked the fastest hiring pace in over a decade. This job growth shows how Saudi non-oil sector growth supports labor market expansion.
With more hiring, staff costs increased. The period recorded the highest wage inflation in years, reversing the earlier easing trend.
Firms expanded operations in response to rising demand, increased tourism, and newly approved projects. These factors all fueled non-oil private sector growth during the start of the quarter.
Despite global headwinds, the Kingdom’s non-oil economy stayed resilient. Businesses raised output, purchasing activity, and hiring rates, while maintaining strong confidence in future performance.
Analysts also praised Saudi Arabia for its control over domestic inflation. Compared to global markets, price stability remained a key strength supporting Saudi non-oil sector growth.
Firms reported strong expectations for the coming year. Optimism rose slightly, despite remaining below the long-term average.
Forecasts predict that GDP will grow by 3%, while non-oil sectors are set to rise by 4.5%. These projections show that Saudi non-oil sector growth is becoming a key economic driver.
Vision 2030 continues to guide the push toward diversification and innovation. Non-oil expansion is now central to Saudi Arabia’s sustainable economic goals.
In conclusion, strong hiring, rising output, and steady sales highlight the momentum of Saudi Arabia’s expanding non-oil economy. The private sector continues to build strength and show growing confidence.
