Non-oil private sector growth in Saudi Arabia continued its upward trend in July, according to the latest data from the Riyad Bank Purchasing Managers Index (PMI). Although the growth pace slightly slowed, key indicators still reflect strong business activity across the Kingdom.
The PMI reading for July stood at 56.3, which marked a modest decline from June’s figure of 57.2. However, the index remained well above the critical 50.0 level, which separates growth from contraction. This reading confirmed that Saudi Arabia’s non-oil private sector growth remains healthy and resilient.
Employment gains played a significant role in maintaining positive momentum. Businesses responded to rising domestic demand by accelerating hiring efforts during the month. This surge in job creation contributed meaningfully to the overall business expansion.
Furthermore, analysts noted that strong domestic demand continued to drive purchasing activity. Firms boosted input buying to meet rising customer orders. As a result, supplier performance remained stable, and inventories increased steadily.
Non-oil private sector growth supports Saudi Arabia’s long-term economic goals under Vision 2030. The Kingdom has prioritized reducing its reliance on oil revenues and strengthening its private sector. Therefore, sustained activity in non-oil industries signals meaningful progress in economic diversification.
In addition, July’s performance reflects growing business confidence across several sectors. Many companies reported stable operations and strong output levels. Despite global uncertainties, Saudi firms remained optimistic about near-term economic prospects.
Moreover, economic planners view this expansion as a positive sign of structural improvements. Ongoing reforms, increased investment, and regulatory changes have created a more attractive environment for private businesses.
Non-oil private sector growth continues to be a key driver of Saudi Arabia’s transformation. As more businesses expand and new opportunities emerge, the country strengthens its path toward a balanced and diversified economy.
In summary, July’s PMI results underline steady non-oil private sector growth in Saudi Arabia. With strong hiring and stable demand, the Kingdom’s private sector remains on solid footing.
