Saudi Arabia’s non-oil business sector experienced robust growth in December, despite a slight slowdown from the previous month. A recent survey highlights this trend.
The Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) decreased to 58.4 in December from November’s 59.0. Nonetheless, the PMI remains well above the growth threshold of 50.0.
New orders increased for the fifth month in a row, fueled by strong domestic demand and rising exports. The subindex reached 65.5 in December, the fastest growth rate recorded in 2024.
“Saudi Arabia’s non-oil private sector ended 2024 on a high note,” remarked Naif Al-Ghaith, Chief Economist at Riyad Bank, emphasizing the progress under Vision 2030, aimed at economic diversification.
Cost pressures persist, with rising input prices due to high material demand. However, wage inflation eased, alleviating some cost concerns.
Business optimism rose to a nine-month peak in December, with expectations of continuous growth into 2025. The non-oil GDP is anticipated to exceed 4% growth in both 2024 and 2025, driven by improved business conditions.
The Saudi government plans to increase strategic spending on major projects to achieve Vision 2030 targets, particularly those with strict deadlines. Recently, Saudi Arabia was announced as the host nation for the 2034 soccer World Cup.