The Saudi private sector continued to grow steadily in July. Despite a slight dip in the PMI, business activity remained firm. The Purchasing Managers’ Index dropped to 56.3 from 57.2 but stayed above the 50-point neutral level. This confirmed ongoing expansion across the Saudi private sector economy.
This growth reflects the progress of Vision 2030. The national plan aims to reduce reliance on oil and strengthen the role of private enterprise. Sectors like retail, services, and construction now lead the country’s economic diversification. These industries continue to boost employment and attract steady investment.
One economist noted that business activity remained solid, even with slightly slower new order growth. Project work, effective marketing, and domestic demand helped firms maintain a strong position. The Saudi private sector continues to benefit from long-term contracts and resilient consumer spending.
Export orders declined for the first time in several months. However, local demand stayed robust. Companies expanded their international outreach while depending on strong domestic markets to sustain business growth.
Hiring trends remained positive across key industries. Companies expanded their teams to manage increasing workloads and backlogs. Many firms in the Saudi private sector responded to rising demand by onboarding new staff and investing in operational capacity.
Inventory levels also rose. Retailers and manufacturers boosted their stock levels despite reduced purchasing activity. Businesses across the Kingdom adapted to customs delays and longer delivery times by enhancing supply chain strategies.
Meanwhile, input costs rose again. Firms raised wages to retain skilled employees, which led to higher expenses. As a result, prices increased in sectors like services, construction, and retail throughout the Saudi private sector.
Despite these pressures, the outlook remained strong. Firms showed confidence in future demand and continued to invest. Vision 2030 reforms and ongoing project pipelines supported steady economic performance.
The Kingdom’s private economy showed resilience and steady progress. Companies sustained growth, demand stayed strong, and long-term plans supported continued stability.
