Non-oil sector expands on demand
The non-oil economy in Saudi Arabia continued to strengthen during August, with the Purchasing Managers' Index (PMI) reaching the highest level in six months at 53.8 points. This growth was driven by increased demand, improved marketing activity, and an acceleration in procurement to its highest levels since February. Additionally, consumer spending rose by 7.8% year-over-year and 11.4% month-over-month in July, while the money supply grew by 8.2% annually. Meanwhile, private sector credit growth slowed to 5.8%. Despite a 9.7% decline in non-oil exports, oil export revenues increased by 11% in the first half of the year. The Saudi economy remains robust thanks to foreign reserves totaling $488.6 billion and a low inflation rate of 1.8%. The next challenge is to translate demand and investments into productive, sustainable, non-oil sectors to promote economic diversification and counteract fluctuations in oil prices and global trade.
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