In March, Saudi Arabia witnessed a significant uptick in non-oil business activities, reaching a peak not seen in the last six months, according to a recent survey. This surge is evident from the seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index, which registered at 57.0 in March. Despite a slight dip from February’s 57.2, the index remains well above the 50.0 threshold, indicating robust expansion.
We believe that this positive trend is allowing Saudi Arabia to diversify its economy and reduce reliance on oil revenues. The Kingdom’s concerted efforts to enhance sectors beyond oil underscore its ambition to transform and establish itself as a key global player. Diversifying the economy is crucial for Saudi Arabia to achieve sustainable growth, reduce its vulnerability to oil price fluctuations, and create a more stable economic environment. By focusing on sectors such as manufacturing, fintech, real estate, and tourism, Saudi Arabia is laying the groundwork for a more diversified and resilient economy, positioning itself for long-term prosperity and influence on the global stage.
Sources: Reuters, Drakkar for Trading
