Saudi Arabia’s non-oil private sector momentum moderated at the start of 2026, with the Riyad Bank Composite Purchasing Managers’ Index (PMI) slipping to 56.3 in January 2026 from 57.4 in December 2025. Despite the decline, the reading remains comfortably above the 50-point threshold that separates expansion from contraction, indicating that overall business activity continues to grow.
The latest data, updated on 3 February 2026, suggest that while the pace of expansion has cooled slightly, the Saudi economy is still in an expansionary phase. The January moderation may reflect a normalisation after strong year-end activity in December, rather than a fundamental shift in underlying growth trends.
Financial market participants and businesses will be watching upcoming PMI releases closely to assess whether January’s softer reading marks the start of a gradual deceleration or a brief pause in an otherwise robust expansion cycle in the Kingdom’s non-oil private sector.
