The latest survey highlighted a significant surge in new orders, reaching the highest levels in months. Businesses attributed this uptick to improved marketing strategies, heightened domestic and international demand, and continued infrastructure investments aligned with Vision 2030, the kingdom’s ambitious diversification strategy. The rise in orders also fueled a parallel increase in output, with the subindex hitting 61.3.
Employment within the non-oil private sector grew modestly as firms responded to expanding workloads. However, input costs saw a slight increase, primarily due to higher prices for raw materials and logistics. Businesses, in turn, passed some of these costs to clients, reflected in marginally higher selling prices. Despite these challenges, overall sentiment among firms remained optimistic, supported by anticipated long-term economic reforms and rising project pipelines.
Vision 2030 continues to play a pivotal role in Saudi Arabia's economic transition, encouraging growth across non-oil industries such as construction, manufacturing, and technology. The government's emphasis on innovation and sustainability, coupled with substantial investments in mega-projects, has reinforced business confidence and drawn interest from foreign investors.
Experts suggest that sustained momentum in the non-oil sector could mitigate potential challenges from fluctuations in global oil markets. Saudi Arabia's broader economic reforms, supported by fiscal incentives and strategic partnerships, are anticipated to strengthen its economic resilience and global competitiveness.
The kingdom’s focus on diversifying its economic base reflects broader trends across the Gulf Cooperation Council (GCC) states, as regional economies aim to reduce their dependence on hydrocarbon revenues. Saudi Arabia, the largest economy in the region, is positioning itself as a leader in this transition by leveraging its resources to fuel growth in emerging industries.