As a result of Vision 2023.. A significant increase in the non-oil sector in the Saudi economy

 The Kingdom of Saudi Arabia showed a significant decline in the level of the non-oil producing economy in November 2022.

The Saudi Arabia PMI released by Riyad Bank indicated another strong improvement in business conditions in the non-oil economy in November 2022, underlined by the sharp expansion in business activity, which was the fastest since August 2015.

non-oil private sector

According to Saudi reports, the non-oil private sector in Saudi Arabia grew at the fastest pace in seven years in November, supported by a strong increase in new orders and continued confidence in the growth outlook.

The Riyad Bank Purchasing Managers' Index, adjusted in light of seasonal factors, rose to 58.5 points in November from 57.2 points in October, marking the highest reading since September 2021, with a significant rise from the 50-point level that separates growth from contraction.

Improving Economic

New order growth accelerated to a 14-month high, prompting increased purchases on the back of improving economic conditions and increasing demand and investment.

The production sub-index, which measures business activity, rose to 64.6 points in November from 61.3 points in the previous month, while the new orders sub-index rose to 65.7 points from 62.9 points in October.

significant growth

The reports showed that the manufacturing, construction, wholesale and retail sales and services sectors recorded significant growth.

Besides the strong domestic performance, new exports also recorded the fastest increase since November 2015.

Nayef Al-Ghaith, chief economist at Riyad Bank said "The non-oil sector in the Saudi economy continued to grow in November, and business conditions generally improved in light of the increased demand".

He added, "There is also an improvement in companies” expectations as a result of the continuous implementation of the Vision 2030 initiatives, which provided confidence in expectations for future production of the non-oil sector."

November witnessed a more moderate rise in employment compared to data from previous surveys, and increased global inflationary pressures led to higher costs and a faster increase in excise duties.

Production levels expanded at the strongest rate in more than 7 years, and sharp growth continued in the manufacturing, construction, wholesale and retail trade, and services sectors, and increased activity helped companies fulfill new orders and reduce backlogs for the sixth month in a row.

encouraged non-oil companies

Increased demand encouraged non-oil companies to expand their purchases in November, as purchases of production inputs rose at the second fastest rate since August 2015; This led to a strong increase in inventory. The increase in inventory was helped by the strong improvement in supplier performance.

On the other hand; Employee numbers increased only slightly, as most companies kept their employee numbers unchanged from the previous month.

The latest data indicated a slight increase in input cost inflation during November 2022, as average input prices rose sharply and at the fastest pace since July, amid reports of higher material prices and the greater impact of global inflationary pressures.