Riyadh: Apart from oil, Saudi Arabia is also developing in other sectors. The non-oil GDP of the country is expected to increase significantly in the second quarter of this year.
According to Urdu News, a business survey revealed that Saudi Arabia’s non-oil sector gained significant momentum in May as the kingdom’s economic diversification strategy continues.
According to the latest Riyadh Bank Saudi Arabia Purchasing Managers’ Index report, the kingdom’s PMI stood at 58.5 in May, indicating economic growth, down slightly from April’s figure of 59.6.
Riyadh Bank Chief Economist Nayef Al Ghaith said that despite the small decline, the high figures reinforce the view that overall economic activity in Saudi Arabia is continuing well.
He added that the kingdom’s non-oil GDP (gross domestic product) is expected to increase significantly in the second quarter of this year thanks to the private sector.
The report pointed out that new order inflows in non-oil private sector businesses in the kingdom increased significantly in May, while growth in April reached its highest level in just over 8-and-a-half years.
According to the report, the increase in new orders had a positive impact on the tourism and construction sectors in Saudi Arabia, which resulted in an increase in job opportunities in May.
Nayef Al Ghaith says that the new orders increased significantly, which mainly reflects the increase in demand in tourism activities and construction.
That led to the joint fastest rate of job creation since 2018, allowing firms to work through the backlog at a faster pace this month.
He added that higher employment and activity pushed wages up at the second-fastest pace in seven years.
According to the report, business expectations for the next 12 months softened slightly in May, but firms are expecting better market conditions, stronger sales and supportive government economic policy to help growth prospects.
