Saudi Arabia’s Non-Oil Private Sector Continues Growth at Highest Pace in 3 Months
Saudi Arabia’s non-oil private sector recorded its fastest growth rate in three months in May, driven by improved domestic demand and stable supply chains, according to data from the Purchasing Managers’ Index (PMI) released by S&P Global.
This positive performance is a strong indicator of the success of economic diversification strategies under Saudi Vision 2030, which aims to reduce reliance on oil and increase the contribution of productive and service sectors to GDP.
The data showed that improved domestic demand was the main driver of growth, with new orders increasing in non-oil sectors such as tourism, logistics, technology, and manufacturing, supported by increased government spending on major projects under Vision 2030 programs.
Stable supply chains also helped facilitate companies’ operational processes, positively reflecting on production and employment levels in the private sector.
In a related context, the International Monetary Fund (IMF) recently praised Saudi Arabia’s economy for its exceptional efficiency and resilience in the face of regional geopolitical tensions, commending the structural reforms being implemented by the Kingdom.
These positive indicators reflect the resilience of the Saudi economy and its ability to achieve sustainable growth despite global challenges, boosting the confidence of both local and foreign investors in the Saudi business environment. This growth aligns with the targets of Vision 2030 in diversifying income sources and increasing the private sector’s participation in the national economy.
