Saudi Arabia's non-oil private sector continued to expand in November, albeit at a slower rate, according to the Riyad Bank Saudi Arabia PMI (pdf). The seasonally adjusted figure dropped to 58.5 in November, down from 60.2 in October, which was the second-fastest level since September 2014.

New orders slowed down from October’s peak, but it remains one of the fastest rates recorded in 2025. The new orders subindex dropped to 64.6 in November after jumping to 68.1 a month earlier, according to Reuters. Activity levels rose in November supported by the growing demand and ongoing projects, and “new orders extended a growth streak of over five years, though the pace moderated slightly from October’s surge,” Riyad Bank Chief Economist Naif Al Ghaith wrote. Firms attributed the improvement to elevated demand in the domestic market and a pickup in new orders from international markets, but at a slower pace than October.

Output levels continued its expansion on the back of robust demand and new orders levels, with 30% of the surveyed businesses citing an increase in their output compared to the previous month, while only 1% recorded declines. The output subindex rose to 63.7 in November, marking the highest reading in 10 months, Reuters reported.

New orders’ moderated in November, with the trend expected to continue in December. Still, “production growth has remained strong, supported by companies accelerating project completion ahead of year-end,” Head of Specialized Research at Argaam Investments Ahmed Ramzy told EnterpriseAM.

Purchasing activity growth levels decelerated from October levels despite higher purchasing requirements leading to increased buying activity and stock accumulation. Inventory growth saw a modest increase during November — but the weakest in three years — as firms acquired more input to fulfill rising orders.

Employment remained solid but slowed down in November, after hitting its quickest rise in nearly 16 years in October. Firms increased their hiring to meet elevated demand and unfinished business. However, work backlog grew for the fifth month in a row, marking its longest period of accumulation in six years.

Input cost inflation decelerated to an eight- month low amid a modest increase in purchase prices, according to the report. Meanwhile, output prices edged up for the sixth month in a row, but at a slower pace.

Business sentiment: Non-oil companies expressed their most optimistic future outlook in five months during November, supported by healthy demand and new projects, according to the report. “The PMI story has been extremely positive and we think will continue running positive for at least the entirety of next year,” TS Lombard’s MENA Economist Hamzeh Al Gaaod told EnterpriseAM. Next year is expected to see non-oil growth momentum from the continued spending capex, despite the possibility of reducing it by nearly 2%, Al Gaaod added.

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