Saudi Arabia’s non-oil private sector continued to show resilience and momentum in March, with the Purchasing Managers’ Index (PMI) hitting 58.1 — the highest in the Middle East, according to Riyad Bank and S&P Global.
While slightly down from February’s 58.4, the reading still outperformed peers: UAE (54), Kuwait (52.3), and Qatar (52). A PMI above 50 signals expansion.
This strength aligns with Vision 2030, as the Kingdom diversifies into tourism, manufacturing, logistics, and financial services.
“This reading reflects sustained positive momentum… highlighting the sector’s robust health and its role in diversification,” said Naif Al-Ghaith, Chief Economist at Riyad Bank.
Key Highlights:
- Employment in the non-oil sector grew at the fastest pace since Q3 2012.
- Marketing efforts, lower prices, and economic optimism drove new orders.
- Foreign orders continued to rise, though at a slower rate.
- Non-oil exports jumped 10.7% YoY in January to SR26.48B ($7.06B).
- Input cost inflation eased, prompting firms to reduce selling prices for the first time in six months.
- Inventories increased as businesses prepared for continued demand.
- Supplier delivery times improved, although some delays led to higher backlogs.
Al-Ghaith noted these trends support Saudi Arabia’s aim of attracting $100B in FDI annually by 2030 and reducing the unemployment rate to 7% for Saudi nationals.