Saudi Non-Oil Economy Maintains Robust Growth, PMI Signals Sustained Expansion
Saudi Arabia’s economic diversification efforts continue to yield strong results, as the latest Purchasing Managers’ Index (PMI) for the non-oil private sector registered a robust 58.5 in November. While easing slightly from October’s 60.2, the reading remains firmly in expansion territory and marks one of the highest levels seen in years.
This sustained momentum highlights the deepening impact of Vision 2030, which aims to reduce the Kingdom’s reliance on oil by accelerating growth in sectors like tourism, manufacturing, logistics, and financial services. According to Naif Al-Ghaith, Chief Economist at Riyad Bank, the November data indicates “another strong improvement in business conditions,” supported by broad gains across output, employment, and purchasing activity.
A closer look at the survey results reveals the foundations of this strength. Approximately 30% of firms reported an increase in output compared to the previous month, while only 1% signaled a contraction. New orders continued to grow for the 60th consecutive month, fueled by steady demand and ongoing project pipelines. This growth has encouraged businesses to expand purchasing activity, build inventories, and continue hiring at a solid pace across most sub-sectors.
Notably, cost pressures showed signs of easing. Operating expenses rose at the softest rate since March, with companies reporting reduced pressure on purchasing costs. This moderation in input cost inflation allowed businesses to manage workflows more efficiently and maintain healthier margins.
Although export orders grew for the fourth straight month, the pace moderated in November amid softer global market conditions and increased international competition. This underscores the growing importance of robust domestic demand in driving the non-oil sector’s expansion.
Looking ahead, business optimism remains high. Firms express confidence in future demand, pointing to active project pipelines and a favorable investment environment. As Al-Ghaith noted, growth may have eased from October’s peak, but November’s performance confirms that expansion remains steady, resilient, and deeply embedded in the Kingdom’s economic structure.
The consistent strength of the PMI figures offers clear evidence that Saudi Arabia’s economic transformation is not just on paper—it is actively unfolding, building a more diversified and dynamic foundation for long-term growth.
Also Read:
How a 15-Year-Old Pin Became a Symbol of Saudi-China Cultural Friendship
