Saudi’s non-oil sector expands at fastest monthly rate in 7 years

Riyad Bank PMI rose to 58.5 points in November
Saudi’s non-oil sector expands at fastest monthly rate in 7 years
Saudi citizens shopping at a supermarket (photo credit: Saudi Scoop)

According to a survey released on Monday, the non-oil private sector in Saudi Arabia grew at the fastest rate in seven years in November, fueled by a strong increase in new orders and continued optimism about the economy.

The Riyad Bank Purchasing Managers’ Index rose to 58.5 points in November from 57.2 points in October, the highest reading since September 2021, and a significant increase from the 50-point level that separates growth from contraction.

Read more: Saudi non-oil private sector keeps up steady growth

New order growth accelerated to a 14-month high, prompting increased purchases as the economy improved and demand and investment expanded.

The output sub-index increased to 64.6 points in November from 61.3 points the previous month, while the new orders sub-index increased to 65.7 points from 62.9 points in October.

The survey also showed that the manufacturing, construction, wholesale and retail sales, and services sectors recorded significant growth.

Aside from the strong domestic performance, new exports increased at the fastest rate since November 2015.

“The Saudi economy is continuing its expansion in the non-oil sector in November, business conditions have improved across the board in light of rising demand,” said Naif Al-Ghaith, chief economist at Riyad Bank.

Improved business expectations were also observed as a result of the ongoing execution of Vision 2030 initiatives, which provided confidence to the outlook of the future output of the non-oil activities, he added.

Moreover, employment growth was milder in November than in previous surveys, and higher global inflationary pressures led to higher costs and a faster increase in output charges.
The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.