Saudi Non-Oil Private Sector Growth Remains Strong Despite Slight Slowdown

The Saudi Arabia Purchasing Managers' Index (PMI), published by Riyad Bank, reached 58.5 points in November 2025, falling from 60.2 points in October, which was the highest level in 11 years, according to Trading Economics. Despite this slight decrease, the index continues to signal a strong improvement in the non-oil private sector's business conditions. Economic activity accelerated to its fastest pace since January, supported by robust sales growth and stable project execution. New orders maintained a sharp rise, albeit at a slower rate than October's surge, while export gains were limited. The employment sector remained strong, following a near-record increase last month, as firms expanded their capacity to manage increased workloads and order backlogs. Inflationary pressures eased gradually, with operating costs rising at the slowest pace in eight months due to reduced purchasing costs, though wage levels remained historically high. Output prices increased for the sixth consecutive month, but at a slower pace than in previous months. Business optimism improved to its highest level in five months, driven by strong domestic demand, continued investment activity, and confidence in the momentum of the Kingdom's non-oil sector growth.