Riyadh – Sharikat Mubasher: Saudi Arabia's non-oil business sector recorded its strongest growth in over a year this November, driven by surging demand and increased investment.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 59.0 in November, up from 56.9 in October, according to Reuters.
This marked the fourth consecutive monthly increase in the headline PMI, remaining significantly above the 50.0 threshold that indicates growth.
The new orders subindex climbed to 63.4 in November, compared to 62.5 in October. Respondents attributed this rise to expanding customer bases and increased investment spending.
Naif Al-Ghaith, chief economist at Riyad Bank said: “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.”
The output subindex also saw a notable increase, reaching 63.8 in November from 60.2 in October. Additionally, businesses hired at a faster pace in November compared to the previous month.
Looking ahead, Saudi Arabia is projecting a fiscal deficit of $27 billion for 2025 as it continues to invest in strategic projects under Vision 2030, the Kingdom's transformative plan to diversify its economy and reduce dependence on oil revenues. Despite these efforts, lower oil prices continue to impact government income.
While business confidence regarding the 12-month outlook declined slightly from October levels, it remained consistent with the average sentiment recorded throughout 2024.
