Saudi Non-Oil PMI Climbs to 53.8 in August

Saudi Arabia's non-oil private sector extended its growth streak in August 2026, with the Purchasing Managers' Index (PMI) rising to 53.8 from 53.1 in July. The reading marked the fifth consecutive month of expansion and the strongest level in six months.

Any reading above 50 on the index signals growth in business activity, while a figure below that points to contraction. The improvement in August was driven by faster output, which reached its strongest growth rate in seven months, alongside a fifth straight monthly rise in new orders.

Not all indicators pointed in the same direction. New export orders declined at a faster pace during the month, reflecting weaker external demand even as domestic business conditions improved.

The positive momentum continued into the following month, with the PMI climbing further to 55.3 in September 2026. That marked the sector's sixth consecutive month of expansion and a notable acceleration from the August figure.

Why it matters

The non-oil private sector is a key measure of the Kingdom's economic diversification efforts under رؤية السعودية 2030. Sustained growth in output and new orders signals healthy demand across industries that employ large numbers of residents and expats, from retail and services to construction and logistics.

For the business community in الرياض, جدة and beyond, a steadily expanding PMI points to a stable operating environment, continued hiring activity, and ongoing opportunities for small and medium-sized enterprises that form the backbone of the non-oil economy.

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