Saudi Non-Oil Sector Leads Regional Growth in June

Saudi Arabia's non-oil private sector recorded its fastest growth in three months in June 2025, with the Riyad Bank PMI reaching 57.2, driven by robust domestic demand, accelerated hiring, and new project starts. Hiring rates surged to their highest since May 2011, reflecting optimism fueled by the Vision 2030 diversification agenda and a strong economic outlook. Rising domestic demand led to increased wage and input costs, prompting firms to raise prices, while purchasing activity and inventories also rose sharply in anticipation of sustained demand. The International Monetary Fund has upgraded Saudi Arabia's 2025 GDP growth forecast, citing strong non-oil activity and ongoing government projects. Meanwhile, the UAE's non-oil sector grew more modestly, with Dubai's PMI dropping to a nearly four-year low amid weaker sales and tourism. Business confidence in Saudi Arabia remains at a two-year high, positioning the Kingdom as a regional leader in non-oil sector expansion.