Saudi Non-Oil Private Sector PMI Hits Six-Month High

Business activity in Saudi Arabia's non-oil private sector accelerated in August 2026, with the Purchasing Managers' Index (PMI) climbing to 53.8, a six-month high. The reading marked the fifth consecutive month of expansion in the sector.

The August figure was up from 53.1 in July, and signaled faster growth in both business activity and new orders. On the PMI scale, any reading above 50.0 points to expansion, while a figure below that line indicates contraction.

The latest result caps a steady recovery over recent months. In June, the index stood at 53.3, its highest level in four months, following 52.8 in May and 51.5 in April. April's reading returned the sector to growth after it contracted in March, when the PMI dropped to 48.8 — the first contraction since August 2020.

Why it matters

The non-oil private sector is a key part of Saudi Arabia's economic diversification drive under رؤية السعودية 2030. Stronger business activity and rising new orders typically point to healthier demand, more hiring, and expanding opportunities for companies and workers across the Kingdom.

For residents and expats in الرياض, جدة and other cities, sustained growth in the non-oil economy can translate into a more active job market and greater investment across retail, services, and other sectors that shape daily life and the local business climate.

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