Saudi Arabia’s non-oil private sector maintained strong momentum in April, as shown by a Purchasing Managers’ Index reading of 55.6. While this was a slight decrease from the previous month, it still reflected solid expansion and outperformed similar measures in neighboring countries.
Growth was marked by a surge in employment, with hiring reaching its fastest pace in over a decade. Businesses increased staff levels to keep up with rising sales and greater project activity, leading to higher wage costs.
The report highlighted that output continued to rise, driven by new projects and increased tourism. However, global uncertainties and competition have created some challenges for client spending. Despite this, employment has shown steady gains since last year.
Saudi Arabia’s efforts to diversify its economy away from oil are yielding results, helping the country manage inflation more effectively than others. Purchasing activity also accelerated, and forecasts indicate further growth ahead. Projections suggest GDP will expand by 3 percent, with non-oil sectors growing even faster. This progress supports the country’s long-term economic transformation goals.