Saudi non-oil business activity expands in November but new orders slow, PMI shows

Saudi Non-Oil Business Expansion in November

Saudi Arabia’s non-oil private sector continued to grow in November, marking the fastest expansion in ten months. The latest Purchasing Managers’ Index (PMI) survey indicated robust overall business activity, despite a notable slowdown in new orders.

Key Performance Trends

According to data from Riyad Bank’s Saudi Arabia PMI, the index eased slightly to 57.8 in November from 58.4 in October. This score remains well above the neutral 50-mark, signaling strong growth momentum.

“The non-oil economy remained on a solid footing, supported by rising output and employment,” said Naif Al-Ghaith, Chief Economist at Riyad Bank.

Employment levels in the non-oil sector continued to rise, with companies hiring at the fastest pace since early 2023. However, firms reported slower growth in new orders, citing a cooling in demand after months of sustained expansion.

Price and Supply Conditions

Input cost inflation remained modest, as firms benefited from stable supplier performance and lower pressures on raw materials. Output prices were largely unchanged, suggesting that companies buffered clients from higher costs to preserve demand.

Business sentiment stayed optimistic, though slightly less so than in previous months. Respondents attributed their confidence to long-term governmental initiatives under Saudi Vision 2030, which seek to diversify the economy away from oil dependence.

Summary

The PMI report reflects a generally resilient Saudi private sector, balancing strong output with restrained new order growth as global economic conditions remain uncertain.

“The outlook continues to be positive, though firms are becoming more cautious amid global demand volatility,” Al-Ghaith added.

Author’s summary: Saudi Arabia’s non-oil sector saw its fastest growth in nearly a year, sustained by output and hiring gains, even as new order growth lost some momentum.

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Reuters Reuters — 2025-12-03

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