Latest news with #NaifAl-Ghaith
Business Recorder
4 days ago
- Business
- Business Recorder
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
ABU DHABI: The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. Saudi Arabia launches company to develop artificial intelligence under PIF 'On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain,' Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
Arab News
05-05-2025
- Business
- Arab News
Saudi Arabia's non-oil sector growth continues in April as PMI hits 55.6
RIYADH: Saudi Arabia's non-oil private sector continued to expand in April, with the Riyad Bank Purchasing Managers' Index reaching 55.6, indicating sustained growth in business activity, a new survey showed. According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the April reading marked a slight drop from 58.1 in March but remained comfortably above the neutral 50.0 mark that separates expansion from contraction. Despite the marginal decline, Saudi Arabia's PMI for April was still higher than the UAE's reading of 54.0 and Kuwait's 54.2. Naif Al-Ghaith, chief economist at S&P Global Market Intelligence, said: 'As of April 2025, Saudi Arabia's non-oil economy continues to assert itself as a pivotal component of the nation's economic landscape.' He added: 'The diversification efforts have continued to bear fruit, underscoring the Kingdom's strategic shift away from oil dependency toward a more balanced and sustainable economic framework.' The PMI survey signalled a strong increase in employment levels across the non-oil private sector in April. The rate of hiring growth accelerated to its joint-fastest pace in ten and a half years, matching the level recorded in October 2023, as companies expanded their staffing capacity in response to rising sales and increased activity. As a result, staff cost inflation surged to a record high in April, reversing the slowdown in cost pressures seen in March. 'Employment in the non-oil private sector has been particularly vibrant. This surge in employment is a response to rising sales and increased business activity, prompting firms to expand staffing capacities,' said Al-Ghaith. The report added that business activity at Saudi Arabia's non-oil companies increased sharply at the start of the second quarter, with firms commonly reporting an expansion in output due to higher sales, new project approvals, and strong tourist numbers. 'While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending. Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May,' added Al-Ghaith. He further noted that Saudi Arabia had successfully managed inflation compared to other nations, highlighting the Kingdom's effective control of domestic prices amid global uncertainties. The latest PMI data also signalled a steep increase in purchasing activity, with the growth rate reaching a three-month high. S&P Global noted that expectations among non-oil firms for output in one year's time increased slightly from March, although overall business optimism remained below the long-run survey average. Looking ahead, Al-Ghaith said the Kingdom's fiscal prospects remain positive for 2025. 'Forecasts suggest a 3 percent expansion in overall gross domestic product and a 4.5 percent increase in non-oil sectors, continuing the upward trajectory in non-oil activities,' said Al-Ghaith. He added: 'This growth is crucial for sustaining the economic transformation outlined in Vision 2030, which aims to foster diverse, innovative industries.'
Economy ME
05-05-2025
- Business
- Economy ME
Saudi Arabia non-oil sector employment climbs, reflecting continued growth momentum
Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory. The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March. 'While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending,' Naif Al-Ghaith, Riyad Bank's chief economist said. 'Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May.' The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand. However, the degree of business optimism remained weaker than the long-run survey average, the survey showed. Saudi Arabia's economy grew 2.7 percent in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons. Read more: Saudi Arabia reports 2.7 percent GDP growth in Q1 2025 driven by non-oil sector Government initiatives support long-term growth The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality. Despite the easing growth, certain segments within the non-oil sector continue to show resilience. The construction and real estate sectors, for example, have remained relatively stable, supported by government initiatives aimed at boosting housing and infrastructure development. Additionally, the technology and fintech sectors have seen increased activity, driven by a growing demand for digital solutions and services. The Saudi government has been actively promoting initiatives to enhance the business environment, attract foreign investment, and foster innovation across various industries. These efforts are crucial for sustaining long-term growth and reducing reliance on oil revenues.
Business Recorder
05-05-2025
- Business
- Business Recorder
Saudi Arabia's non-oil business sector growth eases in April, PMI shows
Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory. The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March. 'While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending,' Naif Al-Ghaith, Riyad Bank's chief economist said. 'Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May.' Egypt's non-oil private sector posts growth in January, PMI shows The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand. But the degree of business optimism remained weaker than the long-run survey average, the survey showed. Saudi Arabia's economy grew 2.7% in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons. The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality.
Reuters
05-05-2025
- Business
- Reuters
Saudi Arabia's non-oil business sector growth eases in April, PMI shows
May 5 (Reuters) - Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory. The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March. "While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending," Naif Al-Ghaith, Riyad Bank's chief economist said. "Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May." The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand. But the degree of business optimism remained weaker than the long-run survey average, the survey showed. Saudi Arabia's economy grew 2.7% in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons. The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality.
