Saudi Arabia’s non-oil private sector grows at fastest rate in over a decade
Saudi Arabia's General Authority for Statistics said last week that the kingdom's non-oil GDP growth rate was up 4.3% from 2023, while oil activities declined by 4.5%.
Saudi Arabia’s non-oil private sector activity reached a 10-year high in January, a survey showed Tuesday, as the kingdom invests in other industries to meet its Vision 2030 goals to diversify its economy away from hydrocarbons.
Saudi lender Riyad Bank's Purchasing Managers’ Index was 60.5 for January, up from 58.4 in December, its highest rate in more than a decade. PMIs are economic indicators of how the private sector is performing based on surveys of businesses. A PMI over 50 shows growth, whereas a PMI under 50 shows contraction.
What happened: Commenting on the survey, Naif Al-Ghaith, chief economist at Riyad Bank, said new orders were the main drivers of the expansion, with nearly 45% of firms surveyed reporting higher volumes of sales. It was the kingdom's fastest increase in total new orders since June 2011, the bank said. Ghaith said this was due to positive economic conditions and the acceleration of infrastructure projects in Saudi Arabia.
“The rise in export orders further complemented domestic demand, particularly from GCC countries, reflecting effective marketing and competitive pricing strategies,” he added.
