ABU DHABI: Growth in Saudi Arabia’s non-oil private sector slowed slightly in February, reaching its lowest level in nine months, as competitive pressures weighed on expansion, a survey showed on Tuesday, although demand remained strong.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) slipped to a reading of 56.1 in February from January’s 56.3, but remained well above the 50.0 threshold that separates growth from contraction.
“This performance was driven by robust domestic demand and a steady flow of new project approvals,” said Naif Al-Ghaith, Riyad Bank’s chief economist.
Expansion of the non-oil sector is a key stated objective of Saudi Arabia’s economic diversification plans. However, Iran’s retaliatory strikes across the Gulf since Saturday have triggered the most widespread business disruption in the region since the COVID-19 pandemic, forcing airport closures, halting port operations and sending shockwaves through financial markets.
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