Riyadh – Sharikat Mubasher: Saudi Arabia’s non-oil private sector continued to expand in April, with employment growth surging to one of the fastest rates in over a decade, according to the latest Riyad Bank PMI report.
Companies boosted hiring to meet rising demand, especially in sectors like tourism, IT, and marketing, as new projects and higher sales drove activity.
The PMI fell to 55.6 from 58.1 in March, the lowest since August 2024, but still signaled solid expansion. The dip was mainly due to slower growth in new orders, partly impacted by global uncertainties and increased competition.
Despite this, companies ramped up recruitment, leading to a record rise in salary costs and a rebound in material price inflation. Output prices also increased modestly after falling in March, reflecting higher operating costs.
Naif Al-Ghaith, Chief Economist at Riyad Bank, noted that Saudi Arabia’s non-oil economy remains a central force in the country’s broader economic landscape as of April 2025. He highlighted that the Kingdom achieved 1.3% real GDP growth in 2024, largely driven by a 4.3% rise in non-oil activities and a 2.6% increase in government services, despite a 4.5% drop in oil-related output due to OPEC+ cuts.
Al-Ghaith emphasized that these results reflect the continuing success of the country’s diversification strategy and its move toward a more balanced, sustainable economic model.
Worth mentioning, the Riyad Bank Saudi Arabia PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies.
The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).
