Riyadh – Sharikat Mubasher: Saudi Arabia’s non-oil private sector wrapped up 2024 with notable momentum, marked by the fastest sales growth in a year.
According to the Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) survey, total sales volumes in the non-energy sector surged in December, contributing to significant business activity and inventory increases.
The survey, compiled by S&P Global, indicated a PMI reading of 58.4 in December, showcasing the strength and resilience of the private sector. Despite a slight dip from November’s 17-month high of 59, this reading points to continued growth in the non-oil sector. Notably, the PMI has consistently remained above the neutral 50 mark since September 2020, indicating ongoing expansion in Saudi Arabia’s private sector.
Private businesses benefitted from higher client demand, new marketing campaigns, and improved economic conditions in December, fueling optimism for 2025. The uptick in new work also contributed to increased export orders, with the sector experiencing the sharpest rise in new exports in 17 months, driven by product innovations and solid relationships with international clients.
Although the sector faced inflationary pressures, particularly in material costs, businesses managed to soften the impact on salaries by easing job creation. The survey revealed that while input costs remained high, wage inflation was more moderate, balancing pressures on companies.
Looking ahead, Saudi Arabia’s private sector remains poised for growth, with non-oil GDP expected to rise over 4 percent in both 2024 and 2025. This performance reflects significant improvements in business conditions, rising market confidence, and a continued push toward diversification under Vision 2030.
Private sector companies are optimistic about future sales growth and expect to see higher activity levels throughout 2025. This positive outlook underscores the private sector’s central role in the Kingdom’s long-term economic vision, positioning it to contribute significantly to Saudi Arabia’s sustainable growth and development.