ABU DHABI (Reuters) – Saudi Arabia’s non-oil business sector grew in November at the fastest rate since July 2023 on strong demand, a business survey showed on Tuesday.
Saudi Arabia’s Riyad Bank seasonally adjusted purchasing managers’ index rose to 59.0 from October’s 56.9. It was the fourth consecutive monthly increase in the headline PMI, which remained well above the 50.0 mark indicating growth.
The new orders sub-index rose to 63.4 in November from 62.5 the previous month, supported by a growing customer base and increased investment spending, according to respondents.
“This strong expansion, marked by accelerating production and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independent of oil price fluctuations,” said Naif Al-Ghaith, chief economist at Riyad Bank.
The production sub-index rose to 63.8 in November from 60.2 in October. Companies also added jobs at a faster rate in November than the previous month.
Saudi Arabia is forecasting a fiscal deficit of $27 billion in 2025 as it moves forward with strategic spending on projects linked to Vision 2030, the kingdom’s ambitious plan to overhaul the economy and boost non-oil growth, even as lower oil prices weigh on revenues.
Business confidence about the 12-month outlook fell from October, but broadly in line with the 2024 average to date.
