Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector maintained its growth momentum in July, with operating conditions improving for the fourth successive month.

According to the latest Riyad Bank Saudi Arabia PMI report, Saudi Arabia’s Purchasing Managers’ Index (PMI) registered 53.1 in July, down from 53.3 in June, indicating a solid improvement in non-oil private-sector business conditions.

The PMI is a weighted average of five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).

Business activity rose strongly in July, with approximately 19% of companies reporting increased output, compared with only 4% reporting declines. Qualitative reports from the survey panel showed an increase in new order volumes and an ongoing normalization of market conditions. The overall growth moderated since June and was mild compared with historical trends.

The export picture remained challenging, as international orders declined for the fifth consecutive month due to elevated freight charges and competitive pressures.

Employment in the Saudi non-oil private sector showed modest improvement, as workforce numbers expanded following July’s inactivity. However, the rate of job creation remained well below those observed at the beginning of 2026.

Supply chain conditions also improved in July, with delivery times shortening for the third straight month and at the quickest rate since February. The uplift was reportedly aided by improved vendor responsiveness and increased local sourcing.

Naif Al-Ghaith PhD, Chief Economist at Riyad Bank, commented: “The sustained expansion in domestic demand, resilient business activity, and improving supply-side conditions reinforce our expectation that Saudi Arabia's non-oil economy will maintain solid growth momentum through the second half of the year, supported by strong underlying economic fundamentals and continued progress in economic diversification.”