Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
(Reuters) – Strong demand led to growth in Saudi Arabia’s non-oil trade in December, although it was slower than the previous month, a survey showed on Sunday.
Riyad Bank’s seasonally adjusted Saudi Arabia Purchasing Managers’ Index (PMI) fell to 58.4 in December from a 17-month high of 59.0 in November. Despite the dip, the headline PMI remained above the 50.0 mark indicating growth.
New orders continued to rise, marking the fifth consecutive month of acceleration, driven by strong domestic demand and increased imports. The subindex rose to 65.5 in December from 63.4 the previous month, and the growth rate was the fastest recorded in 2024.
“Saudi Arabia’s non-oil private sector ended 2024 on a high note, reflecting the successful steps taken under Vision 2030,” said Naif Al-Ghaith, Chief Economist of Riyad Bank, talking about the country’s commitment program to diversify its economy.
Cost pressures remained a concern, with commodity prices rising sharply due to strong demand for goods. However, inflation slowed, helping to reduce the overall cost burden.
Business expectations improved to a nine-month high in December, and firms are hopeful of continued growth in 2025.
Non-oil GDP is expected to grow by more than 4% in 2024 and 2025, driven by significant improvements in business conditions, Al-Ghaith added.
The Saudi government plans to increase spending on major projects to achieve its Vision 2030 goals, especially in sectors that are facing difficult times. Last month, the kingdom was officially announced as the host country for the 2034 soccer World Cup.
