Saudi Non-Oil Private Sector Hits Highest Level in 8 Year in February

Saudi Arabia's non-oil private business activity recorded in February the highest growth since March 2015, due to a strong increase in demand and improving economic conditions.

The Kingdom's Purchasing Managers' Index (PMI) of the Riyad Bank, formerly the S&P Global Saudi Arabia PMI, hit 59.8 in February, up from 58.2 in January.

The latest PMI report noted that Saudi Arabia's PMI for December 2022 stood at 56.9. 

"Economic conditions remain favorable across business activities in February 2023, as growth in the Saudi non-oil private sector accelerated to the highest level in almost eight years," said Naif Al-Ghaith, chief economist at Riyad Bank. 

He added: "Despite tighter monetary conditions, demand and supply balance seemed robust and spurred by the ongoing projects around the Kingdom."

The report added that improved economic conditions boost confidence in future business activity over the year ahead.

The report also showed that firms in Saudi Arabia reported faster upturns in output, employment and purchasing.

Job numbers in non-oil companies rose at the second fastest rate in five years as firms increased their hiring to meet future demand.