PHOTO
Saudi Arabia’s non-oil private sector is undergoing a significant transformation, achieving one of its strongest growth rates since 2014, according to Riyadh Bank.
This momentum reflects the success of the country’s long-term economic reforms and infrastructure investments under Vision 2030, which have empowered local companies to expand, create jobs, and contribute more substantially to the national economy, the Bank said in a report this week.
The Riyad Bank Purchasing Managers’ Index (PMI) climbed sharply to 60.2 in October, up from 57.8 in September, indicating a robust improvement in business activity and operating conditions, it said.
The report attributed the surge to rising demand, strong hiring, and an increasingly confident private sector. A PMI reading above 50 signals growth, and October’s figure represents the second-fastest pace of expansion since 2014, it added.
Official budget data for the third quarter further confirmed this positive trend, showing non-oil revenues of 119 billion Saudi riyals ($31.7 billion), up one percent year-on-year.
Former Saudi Shura Council member and economist Fahad bin Jumah said the government’s support for private sector development, job creation, and investment opportunities has been crucial in sustaining growth.
The transformation driven by Vision 2030 since its launch in 2016 has enabled companies across non-oil industries to expand within a more diversified economy that is less tied to oil price fluctuations, he said.
He added that major national projects, such as Qiddiya, Diriyah Gate, Roshn, The Red Sea, and NEOM, many led by the Public Investment Fund, have opened the door for private sector participation and job creation on an unprecedented scale.
(Writing by N Saeed; Editing by Anoop Menon)
Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.
