Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector activity rose at the fastest pace in three months during May, signaling a solid recovery from March’s downturn, as domestic demand improved and supply chains stabilized.
The latest Riyad Bank Saudi Arabia PMI report showed that the Purchasing Managers’ Index (PMI) rose to 52.8 in May, from 51.5 in April, showing a stronger improvement in business conditions.
This improvement was mainly driven by stronger output and new orders; however, the pace of expansion was modest and well below the long-run trend, with improved economic conditions and restarted projects offset by delayed client spending and strong competitive pressures.
Naif Al-Ghaith, Chief Economist at Riyad Bank, commented: “The latest PMI results reinforce the view that Saudi Arabia’s non-oil economy continues to benefit from Vision 2030 initiatives, government spending, infrastructure projects, tourism expansion, and increasing private sector participation across multiple industries. Overall business sentiment remained positive and supportive of further growth ahead.”
He affirmed that the latest PMI reading supports the expectation that Saudi Arabia’s non-oil economy will continue its upward trend during the remainder of
2026.
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%).
