FX.co ★ Saudi Non-Oil Private Sector Growth Eases at Year-End

Riyad Bank's Purchasing Managers' Index (PMI) for Saudi Arabia decreased to 57.4 in December 2025, down from 58.5 in November. This decline indicates a slowdown in the expansion of the non-oil private sector, although the growth remains robust as the year concluded. Despite being the slowest in four months, the index stayed marginally above its long-term average. Business activity saw an uptrend, albeit at its softest level since August, and new orders continued to rise significantly, though the pace slowed amidst rising competition and market saturation concerns. Employment figures demonstrated strong growth, with companies expanding their capacity, even as backlogs accumulated at the fastest rate since July. On the price front, inflationary pressures escalated with purchase prices increasing at a faster rate, leading firms to raise selling prices more aggressively, while wage pressures diminished to their lowest in nearly two years. Business confidence dipped to its lowest point since July, indicating a more prudent outlook for 2026, despite forecasts of ongoing growth.