Saudi Arabia’s non-oil private sector surged in June, expanding at its fastest pace in three months, driven by strong domestic demand, aggressive hiring, and a jump in purchasing activity. The Riyad Bank Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 57.2 in June from 55.8 in May, indicating robust economic momentum well above the neutral 50 threshold.
The index also surpassed the long-term average of 56.9, reflecting sustained optimism in the Kingdom’s diversification efforts under Vision 2030. According to Naif Al-Ghaith, chief economist at Riyad Bank, the uptick was “supported by higher output levels, rising demand, and an active labor market”.
June also marked a hiring milestone: non-oil companies recruited staff at the fastest rate since 2011. This was part of a wider trend, with firms expanding teams to manage rising workloads amid increased demand for skilled labor.
The growth came despite mounting input costs and inflationary pressures. While some firms passed on price increases to customers, others reduced prices to stay competitive. Purchasing activity reached a two-year high, with nearly 40% of surveyed firms boosting procurement to meet rising demand.
The upbeat PMI reading places Saudi Arabia ahead of regional peers like the UAE (53.5) and Kuwait (53.1), reinforcing its position as the GCC’s economic pace-setter.
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