BETH – Riyadh | July 4, 2025

A new survey released Thursday revealed an acceleration in the growth of Saudi Arabia’s non-oil private sector in June, driven by strong customer demand and increased hiring activity.

The Riyad Bank Purchasing Managers’ Index (PMI) rose to a three-month high of 57.2 in June, up from 55.8 in May. The index remained well above the neutral 50-point threshold, indicating continued expansion.

New order growth surged to a four-month high, with the sub-index reaching 64.3 in June, compared to 62.5 in May. The increase was largely fueled by domestic sales, supported by successful client acquisition and enhanced marketing strategies, while export sales remained modest.

Naif Al-Ghaith, Chief Economist at Riyad Bank, stated:

“Companies largely attributed the rebound in activity to stronger sales, new project launches, and improved demand conditions, although the pace of output growth remained somewhat slower compared to earlier surges.”

Private non-oil firms also hired at the fastest rate since May 2011, expanding their workforce to manage growing workloads.

Input prices rose sharply, continuing the trend observed in Q2, prompting many businesses to pass higher costs onto customers. This resulted in the steepest rise in output prices in over a year and a half, following recent declines.

Despite inflationary pressures, Saudi non-oil companies remained optimistic about the future. The Future Output Index reached a two-year high, reflecting growing confidence backed by strong domestic economic conditions and solid demand.

Last month, the International Monetary Fund (IMF) raised its forecast for Saudi Arabia’s GDP growth in 2025 from 3% to 3.5%, citing robust demand linked to government-led projects and continued support from the OPEC+ alliance’s phased oil output cuts.