Saudi Private Sector Growth Reaches Six-Month High in August

Riyad Bank's Saudi Arabia PMI hit its highest mark in six months in August 2026, reaching 53.8 from July's 53.1. This marks a fifth consecutive month of growth for the non-oil private sector.

The increase was driven by output expansion at its fastest pace since January and new orders increasing for the fifth straight month, despite intense competition and excess supply affecting some firms.

New export orders, however, fell sharply in August compared to July, with regional tensions continuing to impact this aspect of business. Employment increased for a second consecutive month, while backlogs declined for the third time, suggesting spare capacity within the sector.

The improvement in supply conditions led to firms raising input purchases at their fastest pace since February 2026. Nonetheless, inflationary pressures remained high due to rising material, transportation, and staff costs, although output price inflation eased to its slowest level since March.