Saudi Non-Oil PMI Climbs to 53.8 in August

Saudi Arabia's non-oil private sector continued to grow in August 2026, as the Purchasing Managers' Index (PMI) rose to 53.8, up from 53.1 in July. The reading marked the fifth consecutive month of expansion and the highest level recorded in six months, pointing to steady momentum across the Kingdom's non-oil economy.

Any PMI reading above 50 signals expansion, while a figure below that threshold indicates contraction. August's result showed business output climbing to a seven-month high, while new orders increased for the fifth month in a row, supported mainly by strong domestic demand.

Employment also rose for the second consecutive month, a sign that companies are hiring to keep pace with activity. At the same time, export orders declined and backlogs of work fell for the third straight month, suggesting firms were managing their workloads efficiently.

The positive trend extended into the following month, with the September 2026 PMI rising further to 55.3 — a sixth consecutive month of expansion and a sign of accelerating growth in the non-oil sector.

Why it matters

For residents and expats working in or alongside the private sector, sustained expansion often translates into more business activity, continued hiring, and greater stability across industries such as retail, construction, and services. The strength of domestic demand highlights the growing role of the non-oil economy, a central pillar of رؤية السعودية 2030. As a purely economic indicator, the PMI does not involve any government fees, permits, or application procedures.

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