Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil economy saw its strongest growth for a decade in January, with the Kingdom’s Purchasing Managers’ Index (PMI) rising to 60.5 from 58.4 in December, driven by the fastest increase in total new orders since June 2011, which encouraged rapid expansions in activity and stocks.

The latest Riyad Bank Saudi Arabia PMI report stated that the non-oil businesses reported a marked increase in activity levels in the first month of 2025, which was also the sharpest seen for 18 months.

The PMI is a weighted average of five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). Four of the five sub-components of the PMI positively influenced the headline figure in January, particularly the New Orders Index, which rose over five points during the month. Notably, the index pointed to the sharpest rise in new work intakes in just over 13-and-a-half years.

Naif Al-Ghaith, Chief Economist at Riyad Bank, stated that the strong performance of the non-oil economy in January underscored the resilience of the non-oil private sector, fueled by surging new orders and a significant rise in business output.

“The Output Index, reaching its highest level in 18 months, underscores strong demand conditions, with nearly 30% of firms reporting higher activity levels. This expansion highlights the country’s continued economic diversification efforts,” Al-Ghaith added.

He further noted that the rise in export orders complemented domestic demand, particularly from GCC countries, reflecting effective marketing and competitive pricing strategies.