Copyright gulfnews
Dubai: Saudi Arabia’s non-oil private sector delivered one of its strongest performances in more than a decade in October, with firms stepping up hiring at the fastest pace since 2009 and reporting a sharp improvement in operating conditions..Sign up for our daily business newsletter, Cheques & Balances..The Riyad Bank Saudi Arabia PMI rose to 60.2 from 57.8 in September, pushing further above the 50-point threshold that separates growth from contraction. The reading marked the second-fastest expansion since late 2014 and confirmed a robust start to the final quarter.Demand accelerated for the third month in a row. Nearly half of surveyed firms reported stronger sales, supported by improving economic conditions, new client wins and rising foreign investment. Export orders also strengthened, particularly from GCC and African markets, pointing to growing competitiveness among Saudi firms.Output rose in line with the pick-up in new orders, while employment growth quickened to the strongest rate in almost sixteen years. Businesses cited capacity expansion and backlog management as key reasons for additional hiring.Purchasing activity also increased, with firms building inventories at the fastest pace in seven months. Supply chains continued to perform well, as supplier delivery times improved despite higher workloads..Saudi Arabia’s GDP grows 3.9% in Q2 on rebound in oil, non-oil sectors.Saudi businesses add new jobs at fastest pace in 14 years: Riyad Bank PMI.Inflationary pressures firmed, led by higher wages linked to salary adjustments and bonus payments, and increased import-driven input costs. Businesses passed some of these costs to customers, resulting in the steepest rise in output prices since May 2023.“The acceleration was driven by broad-based gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy,” said Naif Al-Ghaith, Chief Economist at Riyad Bank. “The rise in demand encouraged firms to expand production and workforce capacity at the fastest rate since 2009, as businesses expanded capacity to meet new workloads.”Despite the cost environment, companies remained broadly confident. Firms expect momentum to continue, supported by domestic demand, ongoing projects and government investment programmes. While some respondents noted stronger competition as a risk, sentiment remained upbeat.The latest PMI print strengthens expectations that Saudi Arabia will close the year with solid non-oil growth, supported by rising investment activity, project delivery and sustained momentum in domestic and external demand.
