RIYADH, Aug 05 (Arab News) : Saudi Arabia’s non-oil private sector showed robust growth in July, driven by sustained demand amid heightened competitive pressures, according to an economy tracker.
The Riyadh Bank Saudi Arabia PMI survey, compiled by S&P Global, revealed that the Kingdom’s Purchasing Managers’ Index slightly softened to 54.4 in July, down from 55 in June and 56.4 in May.
S&P Global said that any PMI reading above 50 indicates growth in the non-oil sector, while readings below 50 signal contraction.
Bolstering the non-oil private sector is pivotal for Saudi Arabia as it pursues economic diversification by reducing dependence on crude revenues.
Naif Al-Ghaith, chief economist at Riyad Bank, said: “PMI managed to stay on the expansion, recording a solid 54.4, reacting to the status quo of demand and competition in the Saudi market. This figure highlights continued growth within the private sector, driven by sustained demand despite heightened competitive pressures.”
He added: “Demand has played a crucial role in driving orders, ensuring that businesses remain active and forward-looking.”
The report said that extensive market competition has led to downward pressure on prices, as companies strive to maintain market share by offering more attractive pricing to consumers.
Meanwhile, Saudi Arabia’s banking sector loans increased to SR2.75 trillion ($733.82 billion) in June, marking an annual 11.35 percent rise, official data showed.
An analysis released by the Saudi Central Bank, also known as SAMA, revealed that corporate credit accounted for 53 percent of the total lending in the month, while personal loans made up the remaining 47 percent.
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