Strong demand continued to drive growth in Saudi Arabia’s non-oil business sector in December, although the pace was slightly slower than in November, according to a survey released on Sunday.
Riyad Bank Saudi Arabia’s seasonally adjusted Purchasing Managers’ Index (PMI) fell to 58.4 in December, down from a 17-month high of 59.0 in November. Despite the decline, the PMI remained well above 50.0, indicating growth.
New orders rose for the fifth month in a row, supported by strong domestic demand and rising exports. The sub-index rose to 65.5 in December from 63.4 in November, marking the fastest pace of growth on record in 2024.
“Saudi Arabia’s non-oil private sector ended 2024 well, reflecting the successful steps achieved under Vision 2030,” said Nayef Al Ghaith, chief economist at Riyad Bank, highlighting the government’s economic diversification efforts.
Cost pressures remained a challenge, with input prices rising sharply due to high demand for materials. However, wage inflation eased, helping to offset some of the overall cost increases.
Business expectations reached a nine-month high in December, with companies expressing optimism about continued growth in 2025. Al Ghaith noted that Saudi Arabia’s non-oil GDP is expected to grow by more than 4% in 2024 and 2025. , supported by major improvements. In working conditions.
The Saudi government plans to increase strategic spending on large-scale projects to achieve Vision 2030 goals, especially for items with tight deadlines. In December, Saudi Arabia was officially announced as the host country for the 2034 FIFA World Cup, underscoring the Kingdom’s quest to enhance its global presence.