Saudi Arabia’s Non-Oil Private Sector Expands in March Amid Easing Prices and Strong Demand
- SAUDI ARABIA BREAKING NEWS
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Riyadh, April 8 (Saudi Arabia Breaking News) – Saudi Arabia’s non-oil private sector continued to expand in March, bolstered by lower prices and improving economic conditions, although growth moderated slightly from January’s near 14-year high, according to the Riyadh Bank Saudi Arabia Purchasing Managers’ Index (PMI) released Monday.
The seasonally adjusted PMI declined to 58.1 in March, down from 58.4 in February, yet remained well above the 50-mark threshold, which signals expansion in business activity.
The new orders subindex softened to 63.2 from February’s 65.4, reflecting a slowdown in momentum. However, businesses increased inventory levels in anticipation of continued sales growth, while employment rose at the fastest pace in over 12 years, driven by efforts to boost capacity and meet rising demand.
Naif Al-Ghaith, Chief Economist at Riyadh Bank, said the improvement in business conditions reflects government-led initiatives to enhance the regulatory environment and infrastructure development, supporting the Kingdom’s broader objective of attracting private and foreign investment.
As part of Vision 2030, Saudi Arabia aims to raise the non-oil sector’s share of GDP to 65%, up from the current figure of just over 50%.
The survey also revealed that input cost inflation dropped to a four-year low, enabling firms to reduce selling prices for the first time in six months amid heightened market competition.
Despite the positive indicators, backlogs of work rose sharply—registering the fastest increase since August 2018—due to high order volumes and limited capacity. Business confidence for the year ahead declined slightly, signaling caution across the non-oil economy.