FX.co ★ Saudi Non-Oil Private Sector Growth at 3-Month High

In June 2025, the Purchasing Managers' Index (PMI) for Riyad Bank in Saudi Arabia advanced to 57.2, marking a three-month peak, rising from 55.8 in May. This indicates a solid enhancement in the conditions of the non-oil private sector. The growth was fueled by robust domestic demand, the initiation of new projects, and effective marketing strategies. New orders experienced their most rapid expansion in four months, prompting firms to increase hiring at the quickest rate since May 2011 to cope with the growing workload. Purchasing activity also witnessed a substantial rise, reaching its highest level in two years, as companies accumulated inventories to satisfy future demand. On the cost front, wage pressures intensified, resulting in a record surge in staff expenses, which contributed to a renewed rise in overall input costs. Consequently, selling prices increased at their fastest pace since late 2023, as companies regained pricing power and aimed to transfer higher costs to consumers. Despite these pressures, business confidence soared to its highest level in two years, reflecting optimistic forecasts for sustained demand and economic resilience.