Saudi Arabia’s non-oil private sector recorded another month of firm expansion in November, supported by steady demand, rising output and continued hiring, although some indicators suggested a slight cooling from October’s sharp gains.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) came in at 58.5, compared with 60.2 in October, Reuters reported, citing survey data. The reading remained well above the 50 level that separates growth from contraction and marked the strongest overall improvement in business conditions for 10 months.
Output growth accelerated, with the survey’s production subindex rising to 63.7, its highest since January. Firms linked the uptick to strong domestic demand and a steady flow of new work, though new orders increased at a slower pace than the previous month’s peak.
Saudi economy shows strong non-oil growth
The new orders subindex slipped to 64.6 from 68.1 in October. Companies noted that although demand remained resilient, the earlier surge was unlikely to be sustained. Export order growth also continued for a fourth consecutive month but remained modest.
Hiring activity stayed positive, despite easing from October’s near-record pace. Surveyed firms said they increased staffing levels to support rising workloads, with backlogs of work expanding for a fifth consecutive month. The survey said this was the longest period of accumulation since 2019.
Riyad Bank chief economist Naif Al-Ghaith said business confidence remained underpinned by expectations of demand improvements, active pipelines of new projects and ongoing investment. “Looking ahead, confidence is being supported by anticipated improvements in demand, active pipelines of new projects and ongoing investment activity,” he said.
Survey respondents expressed optimism for the coming months, pointing to continued project activity and expectations that domestic economic conditions will remain favourable. Many firms anticipate further increases in output and sales as investment programmes advance.
Saudi Arabia continues to push ahead with efforts to diversify its economy under the Vision 2030 strategy. The government has been investing heavily in sectors such as manufacturing, tourism, construction and technology in order to reduce reliance on hydrocarbons.
Analysts say the non-oil PMI has consistently reflected the impact of this investment cycle, which has supported sustained expansion across a wide range of industries.
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