Saudi Arabia sees fastest job growth in 14 years as wage costs surge, PMI shows
Tired of too many ads? go ad free now
Job Market Heats Up, But So Do Costs
According to the June PMI report:
New jobs across non-oil sectors increased at the sharpest rate in 14 years
This hiring boom led to a record rise in wage costs, contributing significantly to overall cost pressures
'This surge in demand for staff contributed to a record increase in wage costs… and led to a renewed rise in output prices,' the report noted. Adding to wage inflation, input purchase costs also rose at the fastest rate since February 2025, driven by geopolitical risks and stronger demand.
Travel and Aviation Driving the Job Boom
A major contributor to this hiring wave is Saudi Arabia's travel and tourism sector, particularly with the highly anticipated launch of Riyadh Air.
Aviation-facing businesses are actively expanding their teams
Hiring consultants note increased recruitment across airlines, airports, and hospitality services
This activity reflects the Kingdom's broader vision to diversify away from oil and develop a thriving tourism and service economy.
June PMI Surges to 57.2: A Sign of Expanding Growth
Saudi Arabia's non-oil PMI rose to 57.2 in June, up from 55.8 in May. A reading above 50 indicates business expansion.
Key drivers of the PMI rise include:
Higher output levels
Rising demand and new project launches
An active labour market
'Firms largely linked the pickup in activity to improving sales, new project starts, and better demand conditions,' the report stated.
Though output growth was slightly softer than earlier highs, the momentum in hiring and project activity remains strong.
Business Confidence Hits Two-Year High
Despite rising costs, sentiment in the Saudi private sector remains upbeat.
'Confidence about future activity climbed to a two-year peak,' said Naif Al-Ghaith, Chief Economist at Riyad Bank in a public statement.
'Staff costs rose at a record pace as firms worked to retain talent… while purchase prices saw their fastest increase since February.' The positive outlook is underpinned by:
Healthy order pipelines
Stronger domestic demand
Continued project announcements and expansion plans
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 hours ago
- Time of India
UAE: Air Arabia wins bid to launch Saudi low-cost airline in Dammam, boosting Vision 2030 goals
Air Arabia-led alliance to launch new low-cost Saudi airline from Dammam under Vision 2030/ Representative Image TL;DR Air Arabia , based in the UAE, will lead a new Saudi low-cost airline. The airline will be based in Dammam and fly to 81 destinations. It's part of Saudi Arabia's wider aviation push under Vision 2030. On July 20, 2025, Saudi Arabia's General Authority of Civil Aviation (GACA) announced that an alliance led by Air Arabia, along with Saudi firms Kun Investment Holding and Nesma Group, has secured the license to operate a new national low-cost airline based at King Fahd International Airport in Dammam. This new airline will launch with a fleet of 45 aircraft, connecting 24 cities across Saudi Arabia and flying to 57 international destinations. By 2030, the carrier aims to serve around 10 million passengers each year and create over 2,400 new jobs. According to Saudi officials, the airline will help boost competition, increase seat capacity, and offer more affordable travel options to the public, especially in the country's Eastern Region. About Air Arabia and Its Role in Saudi Arabia Air Arabia is a low-cost airline based in Sharjah, UAE. Launched in 2003, it was the first budget carrier in the Middle East. Today, it operates a fleet of about 60 Airbus A320s and flies to over 170 destinations across 30+ countries, including cities in the Middle East, North Africa, Asia, and Europe. The airline is known for offering affordable fares and simple, no-frills service. Until now, Air Arabia's presence in Saudi Arabia was limited to international flights, connecting cities like Riyadh, Jeddah, and Dammam to its wider network. Dammam, for example, was just a destination. That's changing. With the launch of the new Saudi low-cost airline, Dammam becomes the airline's home base in the Kingdom. This is the first time Air Arabia is co-operating a Saudi-licensed carrier, and it turns Dammam into a full-fledged hub, not just a stop on a route. For travelers in the Eastern Province, it means more direct flights, better access, and lower fares. A Closer Look at the Alliance The license was awarded to a three-member consortium: Air Arabia (UAE): One of the region's top low-cost carriers, with extensive experience in budget operations and regional connectivity. Kun Investment Holding (Saudi): A Saudi firm bringing capital and strategic local partnerships. Nesma Group (Saudi): A diversified Saudi business with experience in aviation and infrastructure through its former airline operations. Unlike foreign players operating independently in Saudi skies, this is a Saudi-licensed airline backed by a regional partnership, blending international experience with local roots. Why Dammam? A Strategic Shift Dammam hasn't traditionally been the center of Saudi aviation. Most growth has centered on Riyadh and Jeddah. This move signals a change. By basing the new airline in Dammam, the alliance is tapping into a region that's economically vital but often underserved by direct air links. The plan includes: Improving connectivity for Eastern Province residents Expanding domestic and regional options Supporting tourism and business travel in and out of Dammam This also helps reduce pressure on larger airports and supports Saudi Arabia's goal of creating multiple air travel hubs, not just one or two dominant centers. Key Details: Fleet size: 45 aircraft Network: 24 domestic and 57 international destinations Passenger goal: ~10 million annually by 2030 Jobs created: Over 2,400 Main focus: Improve connectivity in the Eastern Region, expand seat capacity, and offer more affordable fares How This Fits into Vision 2030 Saudi Arabia is betting big on aviation as part of Vision 2030, its long-term strategy to diversify the economy beyond oil. The country aims to: Attract $100 billion in aviation investment Serve over 330 million passengers annually Connect to 250+ global destinations Boost the contribution of aviation to GDP Liberalize airport and airline operations to allow new entrants This new airline aligns with that effort. It's not meant to compete with flagship brands like Riyadh Air, which focuses on premium long-haul routes. Instead, it adds depth, filling a gap in affordable, short- and mid-range travel and extending access to more travelers. What This Means: Positive Outcomes More Travel Options: Travelers get more destinations, especially from Dammam Lower Fares: A low-cost model means increased competition and more pricing flexibility Job Growth: More than 2,400 direct jobs expected Network Expansion: 81 destinations, including key domestic and regional cities Regional Boost: Supports development in the Eastern Province Officials from Saudi Arabia's Ministry of Transport and Logistic Services have indicated that the new airline is expected to increase market competition and offer travelers more choices, supporting the country's broader aviation strategy. FAQs Q1. Who will run the new airline in Saudi Arabia? The airline will be operated by an alliance led by UAE's Air Arabia, with Saudi-based Kun Investment Holding and Nesma Group as partners. The license was granted by GACA. Q2. Why was Dammam chosen as the base? Dammam offers untapped potential. It's a growing economic region with room to expand air traffic. Placing the airline there supports regional development and eases pressure on Riyadh and Jeddah. Q3. How will this airline be different from others like Flyadeal or Riyadh Air? Flyadeal focuses on domestic routes under Saudia. Riyadh Air targets long-haul premium travel. This new airline offers low-cost, regional connectivity, especially from Eastern Saudi Arabia.
Hans India
7 hours ago
- Hans India
Market outlook: Q1 results, PMI data, global cues to drive stock market in upcoming week
Mumbai: The upcoming week is expected to be crucial for Indian stock markets, with a mix of domestic and global factors likely to influence investor sentiment including key Q1 earnings, PMI data, infrastructure output figures, and developments around the India-US trade deal. Between July 21 and 25, several major companies -- including Dr. Reddy's Laboratories, Bajaj Finance, Nestle India, and Cipla -- will announce their financial results for the first quarter (Q1) of FY26. The market will also react to the earnings of heavyweights like Reliance Industries, HDFC Bank, and ICICI Bank. On the macroeconomic front, India will release data on core infrastructure output as well as Manufacturing and Services PMI. These indicators are critical to assessing the overall health of the economy. Globally, any fresh updates on the India-US trade negotiations, fluctuations in crude oil prices, and upcoming inflation and interest rate data from major economies could sway market sentiment. Last week, benchmark indices witnessed volatility. The Sensex dropped 742 points or 0.90 per cent to close at 81,757, while the Nifty slipped 181 points or 0.72 per cent to settle at 24,968. In contrast to large-cap weakness, mid- and small-cap stocks outperformed. The Nifty Midcap 100 gained 462 points or 0.79 per cent to 59,104, while the Nifty Smallcap 100 added 196 points or 1.05 per cent to end at 18,959. Among sectoral indices, Auto, PSU Banks, Pharma, FMCG, Metal, Realty, Media, Energy, and Commodities ended in the green. However, IT, Financial Services, and Private Banks saw declines. Ajit Mishra of Religare Broking said, "Nifty closed below the key psychological mark of 25,000, indicating persistent caution in the market. A break below the immediate support level of 24,900 could open the door to further downside, potentially dragging the index towards the 24,450–24,700 range in the coming sessions."
Time of India
7 hours ago
- Time of India
Gold rate outlook: Prices may trade in tight range in coming week - What will drive the trend?
Gold rate outlook: Gold prices are expected to trade in a narrow range next week as investors await key global cues, including US economic data, trade negotiations, and policy signals from central banks, analysts said. Focus will be on Fed Chair Jerome Powell's speech and PMI data from major economies like the US, UK, and Eurozone, while the European Central Bank's interest rate decision will also be closely watched for its impact on gold prices, analysts added. Analysts told PTI that market participants will also observe the European Central Bank's stance on interest rates to understand potential impacts on bullion values. According to Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, the upcoming week's focus will centre on trade discussion outcomes, Federal Reserve officials' statements, US economic data, including property market figures, weekly unemployment claims, and orders for durable goods. "Gold prices are seen consolidating in a range over the past couple of weeks amid a lack of fresh triggers and recovery in the US Dollar in the given period," Mer told the agency. He noted that bullion's downward movement appears restricted while attention remains on trade discussions between the US and its trading partners, such as India and China. As the August 1 deadline approaches, trade discussion uncertainties are expected to boost gold's safe-haven appeal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo Additionally, domestic festival demand from August to October is anticipated to support prices, according to Mer. In the previous week, August delivery precious metal futures increased by Rs 200 or 0.2% on the Multi Commodity Exchange. Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One, noted that gold values have increased approximately 2% over ten days in international markets, reaching USD 3,350 per ounce. "The positive momentum in gold has been driven by the US President's tariff actions on BRICS nations and possible duties on the EU, increasing investor demand for safe-haven assets," he said. During the previous week, September delivery silver futures achieved a new peak of Rs 1,15,136 per kilogram on the MCX. Experts said silver is evolving into a strategic metal as supply tightens and demand from electric vehicles, solar panels, and electronics rises, setting the stage for a major rally. "Silver is maturing from the 'poor man's gold' to a strategic metal for smart investors. With supply deficits in the world deepening and demand from EVs, solar, and electronics increasing, fundamentals are in place for a major rally," Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital - Prabhudas Lilladher told PTI. "The gold-to-silver ratio of around 90X indicates space for dramatic catch-up. A weakening dollar, persistent inflation, and surging ETF flows are supporting silver's attractiveness," Raichura added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
