Saudi Arabia’s private sector maintained strong growth in November, with output rising at its fastest pace in ten months. The latest survey highlights the resilience of non-oil industries and underscores the Kingdom’s Vision 2030 strategy to reduce reliance on oil.
The Riyad Bank and S&P Global survey reported the Purchasing Managers’ Index fell slightly to 58.5 from October’s 60.2. Nevertheless, any reading above 50 signals expansion, confirming sustained private sector growth.
Naif Al-Ghaith, chief economist at Riyad Bank, said the private sector remained firmly in expansion territory despite the modest slowdown from October. He added, “The headline PMI indicates continued strong improvement in business conditions, supported by broad gains across output, staffing, and purchasing activity.”
Surveyed firms reported that strong demand and new orders drove output growth. Around 30 percent of companies increased production compared to the previous month, while only 1 percent reported contractions. This reflects robust private sector growth across manufacturing, tourism, logistics, and financial services.
Operating costs rose at the slowest pace since March, reducing pressure on purchasing expenses. Companies balanced stock accumulation with efficient workflow management, which helped moderate input cost inflation.
Employment growth continued across most sub-sectors, although hiring rates eased slightly from October. Firms expanded capacity to meet higher workloads, while purchasing activity remained positive to support ongoing projects.
Export orders increased for the fourth consecutive month, although the pace slowed due to softer global demand and rising competition. Nonetheless, companies expressed confidence, citing strong pipelines of new projects and stable domestic demand.
Analysts expect private sector growth to continue supporting Saudi Arabia’s economic diversification. Steady expansion in non-oil industries, along with targeted Vision 2030 initiatives, will drive output, investment, and employment in coming months.
Overall, the latest PMI readings highlight the success of the private sector in maintaining strong growth. Sustained expansion across key industries shows Saudi Arabia is steadily building a resilient and diversified economy.
