Saudi Arabia’s non-oil economic activity surged to a 16-month high in November, underscoring the success of its diversification strategy under Vision 2030. The S&P Saudi Arabia Purchasing Managers’ Index (PMI), a key indicator of the non-oil private sector’s health, climbed to 59, up from 56.9 in October. This marked the fourth consecutive month of growth and highlighted the strongest expansion in key areas like new orders, employment, and output since mid-2023.
Companies across the Kingdom attributed the robust performance to a sharp uptick in both domestic and international demand. Naif Al-Ghaith, chief economist at Riyad Bank, said the acceleration in purchasing activity and inventory expansion signals that businesses are preparing for sustained growth.
“The rise in the PMI reflects the ongoing success of our economic diversification efforts,” Al-Ghaith stated.
Regional Overview: UAE, Kuwait, Qatar Show Growth
Elsewhere in the Gulf Cooperation Council (GCC), other economies also posted positive results.
In the UAE, the non-oil sector grew steadily, supported by strong demand and competitive pricing. However, job creation slowed to its weakest rate in 31 months, reflecting caution among businesses despite overall growth. David Owen, senior economist at S&P Global Market Intelligence, noted a sense of uncertainty among firms, stating, “Confidence in future business activity is subdued, and markets are becoming increasingly competitive, which is curbing pricing power.”
Kuwait experienced a significant leap, with its PMI jumping to 55.9 from 52.7 in October. Businesses in the country reported record increases in purchasing activity and stock levels, and employment grew at its fastest rate since the survey’s inception in 2018.
Qatar’s PMI edged slightly higher to 52.9 in November from 52.8 in October, bolstered by robust employment growth and increased business activity.
Mixed Results in Egypt and Turkey
In Egypt, the PMI improved to 49.2 from 49 in October, signaling a slower pace of contraction in the non-oil sector. Despite easing input price pressures, businesses showed limited optimism about future growth and restrained hiring.
Turkey also showed signs of recovery, with its PMI rising to 48.3 from 45.8 in October, though the reading still indicates contraction in the non-oil economy.
Broader GCC Economic Trends
The GCC’s non-oil sectors remain a focal point for governments seeking to reduce reliance on hydrocarbons. While Saudi Arabia leads the pack with its strategic push for diversification, other Gulf states are also making strides in strengthening their private sectors.
However, as competitive pressures grow and global uncertainties persist, maintaining momentum will require sustained policy support, innovation, and strategic investments.