Saudi Arabia’s non-oil sector surged in September, with the Riyad Bank Purchasing Managers’ Index hitting 57.8 – the strongest reading since March, according to S&P Global.
The headline index, up from 56.4 in August, signalled the fastest improvement in private-sector conditions in six months as business activity and new work inflows accelerated.
Any PMI reading above 50.0 indicates expansion, while below 50 signals contraction.
Saudi Arabia’s PMI also outpaced regional peers in September, with the UAE and Kuwait recording 54.2 and 52.2, respectively. The robust performance underscores the kingdom’s continued success in diversifying its economy away from hydrocarbons under its Vision 2030 blueprint.
Naif Al Ghaith, chief economist at Riyad Bank, said: “Business conditions across Saudi Arabia’s non-oil private sector improved in September, with the Riyad Bank PMI rising to 57.8. The improvement marked the strongest performance since March, reflecting faster output growth and increased demand.”
He added: “New business inflows rose more sharply, supported by both domestic and export orders.”
Non-oil private firms, which participated in the survey, attributed the rise in new orders to successful advertising campaigns and stronger demand from the GCC region.
Strong market conditions, new customer acquisitions, and competitive pricing also played a crucial role in driving new order growth, which led to a rise in new work from international clients for the second month.
According to the report, around 27 per cent of survey respondents reported expansion in business activity, compared to 1pc who noted a decline.
The report further said that employment growth remained strong in September, driven by higher demand and the need to manage workloads efficiently.
Regarding the future outlook, non-oil business firms showed greater optimism, due to expectations of higher demand, increased sales enquiries, successful marketing efforts and new client acquisitions.
The report added that input cost inflation remained stronger than the series trend, driven by rising wage pressures, suppliers passing on higher costs and inflation more broadly.
Selling charges also increased in September, but the rate of increase moderated to its lowest in four months, as some firms tempered prices in a bid to stay competitive.
&uuid=(email))