Saudi Arabia's non-oil sector experienced its most rapid sales growth since July 2023, according to the Kingdom's Purchasing Managers' Index, reaching 57.5 in December, as reported by an economic tracker. The Riyad Bank Saudi Arabia PMI report, compiled by S&P Global, highlighted that although the economic indicator remained steady compared to November, it slightly decreased from October's figure of 58.4. S&P Global observed that the November index continued to notably surpass the neutral benchmark of 50, signaling a considerable enhancement in the non-oil private sector.
Naif Al-Ghaith, Riyad Bank's chief economist, highlighted that Saudi Arabia's non-oil PMI in December achieved an impressive score of 57.5, primarily propelled by a swifter surge in new orders, especially within the manufacturing domain. He further remarked that this growth received significant backing from a notable increase in business activities and exports, demonstrating the resilience and vigor of the non-oil economy. Additionally, S&P Global emphasized that the escalating demand during the period bolstered firms' confidence in pricing strategies and notably boosted purchasing activities.
Al-Ghaith also emphasized that the rise in demand and expansion of the non-oil sector positively influenced employment. He noted a considerable uptick in employment due to the escalating need for skilled workers in response to growing demand. Al-Ghaith highlighted that in order to attract and retain talent, wages experienced an upward trajectory. The economist from S&P Global added that the optimistic employment prospects in Saudi Arabia during December were indicative of the government's successful initiatives aimed at cultivating a diverse and robust economy, offering employment opportunities, and enhancing the standard of living for its citizens.