Non-oil private sector in Saudi Arabia ends 2024 with robust growth
(MENAFN) Saudi Arabia’s non-oil private sector ended 2024 with robust growth, supported by the fastest sales increase in a year, which drove the Kingdom’s Purchasing Managers’ Index (PMI) to 58.4 in December, according to a survey by S&P Global. The Riyad bank Saudi Arabia PMI survey indicated a sharp rise in total sales volumes within the non-energy sector, resulting in significant boosts in business activity and inventory levels. This momentum highlights the Kingdom’s success in advancing its economic diversification goals under Vision 2030, which seeks to reduce reliance on oil and foster sustainable growth.
Naif Al-Ghaith, chief economist at Riyad Bank, noted the strong performance as evidence of ongoing progress. “Saudi Arabia’s non-oil private sector ended 2024 on a high note, reflecting the successful strides made under Vision 2030. The Purchasing Managers’ Index recorded 58.4, underscoring the sector’s resilience and expansion,” he stated. The strong December reading underscores the sector’s ability to sustain momentum despite external challenges.
While December’s PMI marked robust growth, it represented a slight dip from November’s 17-month high of 59. Earlier months also reflected a steady upward trend, with PMI readings of 56.9 in October, 56.3 in September, and 54.8 in August. These figures demonstrate consistent expansion throughout the latter half of the year, reinforcing the resilience of the non-oil private sector.
According to S&P Global, a PMI reading above 50 indicates growth, while a reading below 50 signals contraction. Notably, Saudi Arabia’s PMI has remained above the 50 mark since September 2020, underscoring the sustained progress of its non-energy sector. This continuous growth trajectory reflects the success of the Kingdom’s strategic initiatives to diversify its economy and strengthen non-oil industries, positioning them as key drivers of long-term economic stability.
MENAFN05012025000045015839ID1109056361
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.