Operating Revenues Index in Saudi Arabia Climbs 6.1% on Non-Oil Activity

Saudi Arabia’s Operating Revenues Index rose 6.1 percent year on year in June, driven largely by strong growth in manufacturing and financial and insurance activities, according to preliminary data released by the General Authority for Statistics.

The figures reflect continued momentum in the Kingdom’s broader economy as it advances its Vision 2030 diversification agenda. Earlier in June, GASTAT reported that Saudi Arabia’s real gross domestic product grew 3 percent year on year in the first quarter, with both oil and non-oil sectors expanding 2.9 percent. Non-oil activities remained the largest driver of overall growth, contributing 1.7 percentage points.

GASTAT said the Operating Revenues Index gain was supported by a 16.9 percent jump in manufacturing activities, a 0.6 percent rise in wholesale and retail trade — including motor vehicle and motorcycle repair — and a 2.3 percent increase in construction. Financial and insurance activities climbed 16.9 percent, while information and communication activities rose 5.4 percent.

On a monthly basis, however, the index slipped 3.2 percent from May, weighed down by a sharp 27.3 percent drop in mining and quarrying activities, along with smaller declines in information and communication (0.2 percent), accommodation and food services (1.3 percent), other service activities (0.2 percent), and arts, entertainment and recreation (1.5 percent).

Saudi Arabia’s Employees Compensation Index also posted solid gains, rising 9.1 percent year on year in June. Growth was led by manufacturing at 11.8 percent, wholesale and retail trade at 7.6 percent, and construction at 6.5 percent, with financial and insurance activities up 7.8 percent and mining and quarrying rising 3.9 percent. Month on month, the index advanced 1.6 percent, supported by gains across manufacturing, construction, mining and quarrying, financial and insurance activities, and transportation and storage.

Building activity also strengthened, with the number of issued building permits rising 20.3 percent year on year to reach 5,045 in June, up from 4,192 during the same month last year. Compared with May, permits edged down slightly by 0.2 percent, from 5,056.

GASTAT noted that its Short-Term Business Statistics release tracks monthly indicators reflecting the short-term performance of various economic activities across establishments in the business sector.

Also Read:

Thailand Hosts Myanmar Military Chief as Post-Coup Relations Begin to Improve

Egyptian Entrepreneur Creates AI App to Make the World More Accessible