FX.co ★ Saudi Non-Oil Private Sector Growth Eases in February

Riyad Bank Saudi Arabia’s PMI eased slightly to 56.1 in February 2026 from 56.3 in January, marking the weakest improvement in non-oil business conditions in nine months. Output growth remained solid but lost momentum, falling to a six-month low as competitive pressures and softer international orders weighed on expansion.

In contrast, labour market conditions were notably strong. Staffing levels rose sharply, driving a survey-record increase in wages as firms intensified efforts to retain and attract skilled workers. Selling prices also picked up, registering the joint-fastest rate of increase since May 2023.

Sub-indices for domestic sales and new orders continued to post robust gains, supported by firm customer demand, ongoing digital initiatives, and collaborative projects with clients. Order books expanded broadly, underscoring the resilience of domestic activity.

Looking ahead, business confidence stayed positive, with firms pointing to new client projects, stronger demand, and improving domestic economic conditions as key drivers of optimism.