Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector maintained its positive trajectory at the end of 2025, with business activity, new orders, and employment levels all expanding.

The adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) decreased to 57.4 in December from 58.5 in November, indicating a second consecutive month of slower growth; however, the index continued to reflect solid expansion, remaining well above the 50.0 threshold and its long-term average.

The latest report by Riyad Bank and S&P Global stated that non-oil businesses again raised their output in December. Although the rate of increase was the slowest in four months, it remained in line with the long-term average. Companies attributed the growth to higher new orders, ongoing project work, and greater capital expenditure.

Naif Al-Ghaith, Chief Economist at Riyad Bank, said: “Saudi Arabia’s non-oil private sector closed the year with a solid expansion, as the headline PMI eased to 57.4 in December, with activity continuing to expand despite some loss of momentum. Output growth remained solid, supported by sustained domestic demand, project approvals, and ongoing business investment, even as the pace of growth eased to its slowest since August.”

“Looking ahead, business sentiment softened despite remaining positive. The Future Output Index stayed above the neutral mark, indicating expectations of growth into 2026, but fell to its lowest level since July, reflecting more cautious confidence,” he added.

The Riyad Bank Saudi Arabia PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).