Saudi Non-Oil PMI Hits 6-Month High in August

Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in August 2026, according to the Riyad Bank Purchasing Managers' Index (PMI), which climbed to 53.8 from 53.1 in July. Any reading above 50 signals expansion, and the latest figure marks the strongest improvement in business conditions since February 2026.

The acceleration was driven by stronger output and robust domestic demand. Output growth reached a seven-month high, while new orders rose for a fifth consecutive month. Export orders continued to decline during the month, but resilient local demand more than offset that weakness, keeping overall momentum positive.

The positive data lifted the benchmark Tadawul All Share Index (TASI), which advanced around 0.3% in the referenced trading session on gains in financial, utilities, and materials stocks. Among financial names, Saudi National Bank (SNB) rose about 1%, while in the industrial and materials space, Saudi Arabian Mining Company (Ma'aden) gained roughly 1.4%.

The improvement caps a notable recovery over 2026. The PMI had slipped into contraction in March at 48.8 before rebounding above the 50 mark and reaching August's six-month high of 53.8.

Why it matters

For residents and businesses across Riyadh, Jeddah, and beyond, sustained non-oil growth points to a healthier jobs market, more spending, and continued diversification in line with the Kingdom's long-term economic goals. Rising domestic demand also supports retail, services, and industry — sectors that touch everyday life for both Saudi nationals and expats.

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