S. Arabia’s non-oil PMI hits decade-high in Jan

Saudi Arabia’s non-oil private sector saw its strongest expansion in over a decade in January, as the Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) surged to 60.5 from 58.4 in December – its highest level since September 2014.

The rise was driven by the fastest increase in total new orders since mid-2011, spurred by favourable economic conditions, infrastructure projects, and robust foreign demand.

Business activity accelerated at its sharpest pace in 18 months, while stock levels grew at their second-fastest rate on record. Employment also expanded solidly for the ninth consecutive month.

Despite an uptick in input costs – mainly due to higher material prices amid geopolitical tensions – firms remained highly optimistic, expecting continued demand growth and supportive market conditions throughout 2025.

Export sales climbed at their fastest rate in 18 months, supported by stronger marketing efforts, competitive pricing, and improved international relations. Supply chain efficiency improved, with delivery times shortening at their best rate in 10 months.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama