Growth in non-oil business activity in Saudi Arabia accelerated for a second consecutive month in October, according to a survey. The Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 58.4, the highest reading since June, indicating strong expansion. New orders also surged, supporting the overall growth in activity. This positive trend led to a sharp rise in employment levels, with the employment subindex reaching a nine-year high of 54.5 in October. The expansion in the non-oil sector is seen as a promising sign for the Saudi economy and its efforts to diversify.
The seasonally adjusted index showed growth in output and new business across various sectors, including manufacturing and construction. The surge in new orders signifies an expanding market and sustained growth in the non-oil sector. Naif Al-Ghaith, chief economist at Riyad Bank, highlighted the potential improvement in the job market as a result of the growing demand for labor.
The Saudi government has prioritized creating jobs for citizens in the private sector as part of its Vision 2030 economic diversification plan. The plan aims to achieve non-oil economic growth of around 6% in 2023, outperforming overall GDP growth. While firms remained optimistic overall, the degree of confidence in future output slightly eased from the previous month.
This survey reflects the positive trajectory of Saudi Arabia’s non-oil business sector, indicating sustained growth and increased employment opportunities. It aligns with the government’s goals of diversifying the economy and reducing dependence on oil.