Saudi Non-Oil PMI Hits 7-Month High at 55.3

Saudi Arabia’s non-oil private-sector business activity strengthened in September 2026, with the Purchasing Managers’ Index (PMI) rising to 55.3 from 53.8 in August, marking the strongest business-conditions reading in seven months. Any figure above 50 points signals expansion.

The latest result extends a steady run of growth. The PMI averaged 53.1 during the first half of 2026 and stood at 53.3 at the end of the second quarter, remaining above the expansion threshold throughout the period. Business confidence also climbed to 56.6 points in July 2026, up from 55.6 in May, led by construction at 57.8, followed by services at 55.5 and industry at 55.0.

The non-oil economy continues to carry momentum. Non-oil activities grew 1.8% in the first half of 2026 and accounted for 57.3% of GDP, with full-year non-oil growth projected at 3.2%. The Operating Revenues Index rose 11.4% year-on-year in May 2026.

Headline output, however, reflects weaker oil activity. Real GDP declined 4.7% year-on-year in the second quarter of 2026, and preliminary estimates point to a 3.6% contraction for the full year, driven mainly by the oil sector. This follows GDP growth of 4.6% in 2025.

For residents, business owners and expats, the continued expansion of non-oil sectors signals ongoing demand for jobs, services and consumer activity across the Kingdom, in line with efforts to diversify the economy. The September Future Output Index showed firms remain optimistic about the coming 12 months, though that optimism eased somewhat despite the overall expansion.

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