Riyadh – Mubasher: Growth in the Saudi Arabian non-oil economy remained strong in January 2021, as business activity soared amid rising new work levels and a faster upturn in export sales, according to a survey.   

The expansion drove a sharp increase in purchasing activity, but employment continued to fall for the tenth time in 11 months as some businesses saw capacity exceed prevailing demand.

The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) posted 57.1 in January, up from 57 in December, signalling its highest reading since November 2019.

Commenting on the latest survey results, Economist at IHS Markit, David Owen, said, "Non-oil activity growth continued to accelerate in the new year, pointing to a further recovery in business conditions in Saudi Arabia after the impact of the COVID-19 pandemic. The country has been helped by low case numbers, while other parts of the world have suffered a spike in infections that risks derailing the upturn in the global economy."

"Businesses meanwhile hope that the roll-out of COVID-19 vaccines will bring further growth in 2021 and improve output to pre-COVID levels. Around six times as many firms expect a rise in output over the next 12 months as those that forecast a decline,” Owen concluded.