Saudi Non-Oil Sector Maintains Solid Growth Amid Regional Headwinds

Saudi Arabia's non-oil private sector maintained solid growth in July, according to the Purchasing Managers' Index. The PMI stood at 53.1, just 0.2 points lower than June's rating and above the neutral threshold of 50.

The survey was compiled by S&P Global for Riyad Bank and showed a fourth consecutive monthly improvement in operating conditions. Domestic demand, government spending, and the implementation of Vision 2030 projects are expected to support non-oil activity despite regional tensions weighing on confidence and trade.

Output remained robust, with 19% of surveyed firms reporting higher output compared to just 4% reporting a decline. However, external demand faced headwinds, with export orders declining for the fifth consecutive month due to elevated freight costs and regional tensions.