Saudi non-oil private sector grows at fastest pace since 2014
Saudi Gazette report
RIYADH — The Saudi non-oil private sector recorded growth at its fastest pace in more than a decade, driven by a rise in new orders and strong business activity during the last month of January.
This accelerated growth was led by the Purchasing Managers' Index (PMI) showing that new orders rose at the fastest pace since June 2011, accelerating to a reading of 71.1 in January from 65.5 the previous month, supported by favorable economic conditions and new infrastructure projects, which boosted customer demand and export sales, according to the seasonally adjusted Riyad Bank PMI, released on Tuesday. The PMI rose to 60.5 in January, from 58.4 in December 2024, its highest level since September 2014.
Employment levels continued to rise in January 2025, but cost pressures remained a concern, as higher input prices helped companies raise output prices at the fastest pace in nearly a year.
However, business expectations for the next 12 months improved to the strongest level since March 2024, as companies remained optimistic about future output, despite rising input price pressures.
Commenting on the data, Naif Al-Ghaith, Chief Economist at Riyad Bank, explained that new orders were the main driver of expansion, with around 45 percent of companies seeing sales rise thanks to positive economic conditions and accelerating infrastructure projects.
He pointed out that the increase in export orders boosted local demand, especially from the GCC countries, reflecting effective marketing strategies and competitive prices. "This expansion highlights the country's ongoing economic diversification efforts," he said.
It is noteworthy that the General Authority for Statistics recently revealed that non-oil activities grew by 4.6 percent in the fourth quarter of 2024, and increased by 4.3 percent in total during 2024
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