Saudi Arabia’s Non-Oil Business Sector Sees Fastest Growth in Four Months
Saudi Arabia’s non-oil business sector grew at its fastest rate in four months in November, driven by robust demand, according to a business survey. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index surged to 59.0 from October’s 56.9, marking the fourth consecutive monthly rise in the headline PMI.
The new orders subindex increased to 63.4 in November from 62.5 the previous month, supported by growth in customer bases and increased investment spending. Output also rose to 63.8 in November from October’s 60.2, with firms adding jobs at a faster rate than the previous month.
“This robust expansion, marked by accelerated output and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independently of oil price fluctuations,” said Naif Al-Ghaith, Riyad Bank’s chief economist.
The Saudi government is forecasting a fiscal deficit of $27 billion in 2025 as it pushes ahead with strategic spending on projects linked to Vision 2030, the kingdom’s ambitious plan to overhaul its economy and bolster non-oil growth. Despite lower oil prices weighing on revenue, businesses’ confidence about the 12-month outlook was down from October but broadly in line with the 2024 year-to-date average.