Investing.com -- Saudi Arabia’s non-oil private sector showed stronger growth in May as the Riyad Bank Saudi Arabia PMI rose to 52.8 from 51.5 in April, according to data released today.
The PMI reading, which measures business conditions in the non-oil private sector, remained below its long-run average of 56.8. Survey responses indicated that ongoing regional geopolitical tensions restrained growth.
Non-oil private sector activity increased at the fastest pace in three months during May.
Companies cited normalizing working conditions after earlier conflict-related disruptions, the revival of suspended contracts and stronger domestic demand as reasons for the improvement.
New orders increased at a modest pace during the month, with improved economic conditions and restarted projects offset by delayed client spending and strong competitive pressures. New export orders declined sharply for a third consecutive month due to shipping disruptions, higher freight and fuel costs, and geopolitical tensions.
Suppliers’ delivery times shortened for the first time in three months. Businesses reported that increased reliance on local suppliers helped secure faster deliveries, even as international shipping delays continued. Companies raised their quantity of purchases for the first time since February.
Employment returned to growth in May after declining in the previous month. The increase in jobs was modest and softer than the hiring phase recorded at the start of the year. Backlogs of work rose for the eleventh month running.
Input costs remained elevated, though the rate of increase slowed from April’s survey-record high.
Companies reported higher purchasing prices, freight and transport costs, and increased supplier charges. Output charges rose sharply in May, with the rate of increase among the quickest in the survey’s history despite moderating from April.
Saudi Arabia’s annual inflation rate stood at 1.7% in April 2026.
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