Saudi Arabia’s non-oil private sector maintained its resilience in March, with the Kingdom’s Purchasing Managers’ Index (PMI) reaching 58.1. Non-oil activities now account for 52% of the country’s gross domestic product. Most importantly, the sustained momentum reflects the Kingdom’s Vision 2030 strategy to reduce reliance on oil by accelerating growth in tourism, manufacturing, logistics and financial services.
Saudi Arabia`s March PMI Report
The Riyad Bank Saudi Arabia PMI, compiled by Standard & Poors Global, stated that the improvement in business conditions supports efforts to attract investment, increase the competitiveness of the Saudi economy, and enhance local business growth. Furthermore the economy diversification initiative is further supported by governmental enhancements in regulatory frameworks and infrastructure investments which target private and foreign investments. Attracting international investments is one of the crucial goals outlined in Saudi Arabia’s Vision 2030. Accordingly, the Kingdom is aiming to attract SAR 375 billion (USD 100 billion) a year in foreign direct investment by 2030.
Positive Momentum in Business Conditions Continues
According to the latest PMI report, non-oil private firms witnessed a marked increase in new order volumes. Moreover, the reading reflects sustained positive momentum in business conditions, in turn highlighting the sector’s robust economic health. Furthermore, the report noted that the Kingdoms non-oil businesses continued to increase employment at an elevated pace in March. Due to the upturn in demand, firms prioritised building their sales teams and overall capacity. Further survey data indicated that job growth during the first three months of 2025 was the fastest since the third quarter of 2012.
The Kingdom`s Non-Energy Exports Surging
In addition, The General Authority for Statistics also revealed that the Kingdom’s non-energy exports surged by 10.7% in January to reach SAR 26.48 billion (USD 7.06 billion). This highlights the importance of Saudi Arabia’s non-oil products in international markets.
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