FX.co ★ Saudi Non-Oil Private Sector Growth Continues in May

Riyad Bank’s Saudi Arabia PMI rose to 52.8 in May 2026 from 51.5 in April, indicating a stronger improvement in non-oil private sector conditions. Output grew at the fastest rate in three months, supported by firmer domestic demand, the resumption of projects, and a return to normal operations after earlier disruptions.

However, growth in new orders remained modest, while export orders recorded a sharp decline for the third consecutive month, weighed down by shipping disruptions, higher freight and fuel costs, and ongoing geopolitical tensions. Supply chain conditions improved, with delivery times shortening for the first time since February, and purchasing activity returning to growth.

Employment also increased modestly as firms worked through rising backlogs. At the same time, cost pressures, though easing from April’s record high, remained elevated and led to another steep rise in selling prices. Business confidence stayed subdued amid persistent regional uncertainty.