The non-oil economy of Saudi Arabia has demonstrated marked improvement, with business activity accelerating notably, as evidenced by a recent economic tracking data.
According to the latest Riyad Bank Saudi Arabia PMI report by S&P Global, the Kingdom’s PMI surged to 57.2 in February, marking a noteworthy recovery from a recent low in January. This uptick indicates a substantial enhancement in the operational landscape of the non-oil private sector.
Naif Al-Ghaith, Chief Economist at the firm, attributes February’s PMI rebound to robust growth in output and new orders, particularly propelled by the services and construction sectors.
The report underscores the resilience of non-oil activities in the Kingdom, recording a 4.6 percent increase, according to flash estimates from the General Authority for Statistics (GASTAT). Additionally, expectations of a modest recovery in demand this year are bolstered by the acceleration of Vision 2030 projects.
Furthermore, increased tourism activity has contributed to the highest reading since September 2023. New export orders also show promise, driven by rising demand for domestic products in international markets and the competitiveness of local industries.
Employment witnessed a surge, growing at the fastest pace in eight years, prompting companies to trim their outstanding workloads. This growth is attributed to increased business and positive outlooks regarding future demand.
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