According to an economy tracker, Saudi Arabia’s non-oil private sector had strong growth in July, propelled by ongoing demand and increased competitive pressures.
S&P Global’s compilation of the Riyadh Bank Saudi Arabia PMI survey showed that the Kingdom’s Purchasing Managers’ Index declined marginally to 54.4 in July from 56.4 in May and 55 in June.
According to S&P Global, values below 50 indicate contraction in the non-oil sector, while numbers above 50 suggest expansion.
Supporting the non-oil private sector is essential for Saudi Arabia because it aims to diversify its economy and lessen its reliance on crude oil earnings.
“PMI managed to stay on the expansion, recording a solid 54.4, reacting to the status quo of demand and competition in the Saudi market,” stated Naif Al-Ghaith, chief economist at Riyad Bank. This statistic demonstrates how the private sector has continued to thrive due to persistent demand in spite of increased competition.
Demand has been a major factor in increasing orders and keeping businesses forward-thinking and active, the speaker continued.
According to the survey, intense competition in the market has caused prices to decline as businesses compete to keep customers by providing more appealing deals.
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