The growth of Saudi Arabia's non-oil private sector saw a slight deceleration in December according to the latest Riyad Bank Composite PMI data. The PMI, which provides a key indicator of the economic health of non-oil private sector businesses, declined from 58.5 in November to 57.4 in December. This drop reflects a mild slowdown in the velocity of expansion, although it still indicates economic growth as the index remains well above the neutral 50.0 mark.
The December figure, updated on January 5, 2026, suggests that while the private sector continues to expand, the pace is not as robust as the previous month. Analysts often regard the PMI as pivotal for assessing the performance of private sector enterprises in relation to output, new orders, employment, and supplier delivery times. This deceleration may point to varying influences on business growth, potentially including global economic conditions, supply chain adjustments, or domestic economic policies.
Despite the decline, the sustained growth shown by the index continues to align with Saudi Arabia’s broader vision of diversifying its economy away from oil dependency, highlighting a resilient non-oil sector. Economic observers will be keeping an eye on future PMI readings for further insights into the health of the Kingdom’s economy as it navigates potential challenges and opportunities in the upcoming year.
