Saudi Arabia, which was said to be self-sufficient in oil production, has now dispelled that impression.
Yes, Saudi Arabia’s non-oil sector is picking up pace, as confirmed by a business survey.
According to the survey, Saudi Arabia’s non-oil sector has gained considerable momentum in May. According to the latest report of the Riyadh Bank Saudi Arabia Purchasing Managers’ Index, the kingdom’s PMI was at 58.5 in May, which indicates economic growth. .
Riyadh Bank Chief Economist Naif Al Ghaith said that despite the slight decline, recent data reinforces the view that overall economic activity in Saudi Arabia is continuing at its best.
According to the report, new order inflows in non-oil private sector businesses in the kingdom rose significantly in May after growth in April reached its highest level in just over eight-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.
The development of giga projects in the country, aimed at diversifying the economy, will continue to boost private sector growth in the remaining months of this year, said Riyadh Bank’s chief economist.
Naif Al Ghaith said that the government continues to implement the policies of diversification on a large scale, the development of giga projects is aimed at creating jobs by promoting the private sector.
We believe that the non-oil sector will play an important role in driving growth this year.