Saudi Arabia’s non-oil growth surged in October, marking its second-strongest performance in over a decade. The Riyad Bank and S&P Global Purchasing Managers’ Index climbed to 60.2, rising from 57.8 in September. This increase signals strong business expansion and solid momentum across the Kingdom’s private sector.
The survey showed that business activity grew in most industries, driven by firm demand, higher employment, and robust output. The results highlight the success of Vision 2030 reforms, designed to diversify the economy and strengthen long-term growth.
Minister of Economy and Planning Faisal Alibrahim said Saudi Arabia’s GDP will grow by 5.1 percent in 2025. He noted that this expansion will come mainly from non-oil activities and continued private-sector investment.
Naif Al-Ghaith, chief economist at Riyad Bank, said the October data showed one of the decade’s strongest readings. He explained that gains in new orders, production, and employment were broad-based and steady. According to Al-Ghaith, this momentum reflects stable domestic demand and growing confidence in the non-oil sector.
The report confirmed that new orders rose for the third straight month. Nearly half of surveyed firms reported higher sales, driven by an expanding customer base and foreign investment. These results indicate a healthy business environment and improving competitiveness across the Kingdom.
Job creation reached its fastest pace in almost 16 years as firms expanded capacity to handle new workloads. Moreover, purchasing activity and inventories continued to rise. Suppliers’ delivery times also improved, showing efficient supply chains and better coordination across industries.
The data revealed higher input costs, mainly from salary revisions and employee bonuses. However, optimism among firms remained strong. Many companies expect further expansion, supported by steady demand, ongoing projects, and rising investment opportunities.
Al-Ghaith said the increase in export orders highlights the growing global reach of Saudi firms. Additionally, he noted that diversification efforts are producing clear results, making the Kingdom a competitive regional hub for trade and production.
Overall, the October PMI signals a vibrant non-oil economy gaining strength each quarter. Looking ahead, analysts expect momentum to stay firm through year-end, as reforms, investments, and confidence continue to fuel sustainable growth.
