Saudi Arabia's Non-oil Economy Expands in September on Boost from Domestic Orders

03:56 AM EDT, 10/05/2026 (MT Newswires) -- Non-oil private sector activity in Saudi Arabia expanded at the fastest rate since February as a sharp rise in new orders offset softer production growth, Riyad Bank and S&P Global said Monday. The seasonally adjusted Riyad Bank Saudi Arabia PMI came in at 55.3 in September, up from the previous month's 53.8. The reading marked a sixth straight month of improvement in operating conditions in the kingdom's non-oil economy. "The September results are broadly consistent with the wider picture of the Saudi economy, where domestic consumption, investment activity, government and PIF-related projects, and continued credit availability remain important supports for non-oil activity," said Riyad Bank Chief Economist Naif Al-Ghaith. New orders rose sharply in September following a slowdown in the middle of 2026, as businesses noticed an increase in client numbers and spending amid a gradual improvement in market conditions. However, new orders from foreign customers continued to decline for the seventh straight month as supply chain disruptions persist. "As new orders strengthened, non-oil companies increased hiring at a solid pace, with firms specifically reporting the expansion of sales teams and technical staff to support new investments," Al-Ghaith said. "This is important because the increase in employment appears to be associated not only with current demand but also with businesses expanding their productive capacity." Meanwhile, business activity growth slowed to a five-month low in September, partly due to greater geopolitical uncertainty and concerns over supply chains. Business confidence about future output also dropped as a result.