In July 2025, Saudi Arabia's economic activity, as measured by the Riyad Bank Composite Purchasing Managers' Index (PMI), experienced a modest decline, signaling a deceleration in the growth pace of the non-oil private sector. The index reading for July stood at 56.3, a slight drop from June’s 57.2, as per the latest data updated on August 5, 2025.
The Riyad Bank PMI, a barometer of the health of the non-oil private sector, suggests that while there is still expansion—given any reading above 50 indicates growth—the momentum has slightly weakened compared to the previous month. This dip could reflect various factors impacting business activity and sentiment, though the overall outlook remains positive for sustained expansion.
As Saudi Arabia continues to diversify its economy away from oil dependency, driven by Vision 2030, such fluctuations in the PMI are critical indicators for policymakers and investors. It will be essential to monitor upcoming economic releases to understand better the underlying dynamics shaping the Kingdom’s economic landscape.
