ABU DHABI (Reuters) – Saudi Arabia’s non-oil business sector expanded at its strongest pace in just over a decade in January, driven by a surge in new orders and robust business activity, a survey showed on Tuesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) rose to 60.5 last month from 58.4 in December, marking its highest level since September 2014. Readings above 50 denote growth.
The rapid growth was largely attributed to the fastest rise in new orders since June 2011, with the New Orders Index accelerating to a reading of 71.1 in January from 65.5 the previous month.
This surge in demand was supported by favourable economic conditions and new infrastructure projects, boosting customer orders and export sales, the survey said.
“The rise in export orders further complemented domestic demand, particularly from GCC (Gulf Cooperation Council) countries, reflecting effective marketing and competitive pricing strategies,” Naif Al Ghaith, Riyad Bank’s chief economist said.
“This expansion highlights the country’s continued economic diversification efforts.”
Non-oil growth surged to 4.6% in the fourth quarter of 2024, government estimates showed, outperforming overall GDP growth during the period as the government presses on with investments and initiatives to meet Vision 2030 economic objectives.
Employment levels continued to rise in January, but cost pressures remained a concern, with rising input price inflation contributing to firms increasing output prices at the fastest pace in about a year.
However, business expectations for the year ahead improved to the strongest since March 2024 with firms still optimistic about future output.
(Reporting by Reuters; Editing by Hugh Lawson)
