Saudi Non-Oil Economy Holds Firm Despite Global Headwinds

Saudi Arabia's non-oil private sector continued to grow in July, but at a slightly slower pace than June. The kingdom's Purchasing Managers' Index (PMI) eased to 53.1 from 53.3, still above the 50 mark that signals growth.

Business activity and new orders rose, driven by solid domestic demand, while overseas was a weak spot for the fifth consecutive month. Companies cited Middle East conflict, higher freight costs, and tougher competition as reasons for decreased export orders.

Riyad Bank Chief Economist Naif Al-Ghaith noted that input costs rose at their slowest pace in four months due to softer purchase-price increases. Firms still increased selling prices, but inflation cooled slightly alongside reports of better supplier performance, faster delivery times, and stronger local sourcing.