Latest news with #NaifAl-Ghaith
Gulf Insider
03-07-2025
- Business
- Gulf Insider
Saudi Businesses Add New Jobs At Fastest Pace In 14 Years: Riyad Bank PMI
Saudi businesses are continuing to add new jobs at top speed – but this is also leading to a 'record rise' in their wage costs. Across sectors, new jobs are seeing the 'sharpest rise' since May 2011, according to the latest PMI data. This is where the cost factor kicks in. 'This surge in demand for staff contributed to a record increase in wage costs, which added to overall cost pressures and led to a renewed rise in output prices,' according to a report by Riyad Bank. Adding to this is the cost of purchases, which in June rose at the fastest since February 2025, in part 'driven by stronger demand and rising geopolitical risks'. 'Despite these cost challenges, firms broadly raised their selling prices, reversing the declines seen in May and signaling an improved ability to pass on higher costs to customers,' said Naif Al-Ghaith, Chief Economist at Riyad Bank. The Saudi travel and tourism sector is, these days, one of the biggest hirers in the Kingdom, with the launch date of Riyadh Air coming closer on the horizon. According to hiring consultants, there is a whole slew of aviation facing businesses that are also adding to their payrolls. The Saudi non-oil economy saw its June PMI climb to 57.2 from 55.8 in May. The higher reading is 'supported by higher output levels, rising demand, and an active labour market', says Riyad Bank. 'Firms largely linked the pickup in activity to improving sales, new project starts, and better demand conditions, although the pace of output growth was softer compared to previous highs.' (The Purchasing Managers Index is a composite score that tallies business spending patterns, order intake and output, inventory levels as well as hiring. A score of 50 plus shows businesses in expansion drive.) 'Sentiment among non-oil businesses remains highly positive,' said Al-Ghaith. 'Confidence about future activity climbed to a two-year peak, supported by healthy order pipelines and stronger domestic economic conditions. 'However, cost pressures became more pronounced in June. Staff costs rose at a record pace as firms worked to retain talent, while purchase prices saw their fastest increase since February, partly driven by stronger demand and rising geopolitical risks.'
Time of India
03-07-2025
- Business
- Time of India
Saudi Arabia sees fastest job growth in 14 years as wage costs surge, PMI shows
Saudi Arabia's private sector is experiencing its fastest pace of job creation since May 2011, according to the latest Purchasing Managers' Index (PMI) from Riyad Bank. The robust hiring is fueled by rising demand and economic optimism, but it also comes with rising wage and input costs, placing pressure on overall pricing. 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
Business Recorder
03-06-2025
- Business
- Business Recorder
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
ABU DHABI: The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. Saudi Arabia launches company to develop artificial intelligence under PIF 'On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain,' Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
Arab News
05-05-2025
- Business
- Arab News
Saudi Arabia's non-oil sector growth continues in April as PMI hits 55.6
RIYADH: Saudi Arabia's non-oil private sector continued to expand in April, with the Riyad Bank Purchasing Managers' Index reaching 55.6, indicating sustained growth in business activity, a new survey showed. According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the April reading marked a slight drop from 58.1 in March but remained comfortably above the neutral 50.0 mark that separates expansion from contraction. Despite the marginal decline, Saudi Arabia's PMI for April was still higher than the UAE's reading of 54.0 and Kuwait's 54.2. Naif Al-Ghaith, chief economist at S&P Global Market Intelligence, said: 'As of April 2025, Saudi Arabia's non-oil economy continues to assert itself as a pivotal component of the nation's economic landscape.' He added: 'The diversification efforts have continued to bear fruit, underscoring the Kingdom's strategic shift away from oil dependency toward a more balanced and sustainable economic framework.' The PMI survey signalled a strong increase in employment levels across the non-oil private sector in April. The rate of hiring growth accelerated to its joint-fastest pace in ten and a half years, matching the level recorded in October 2023, as companies expanded their staffing capacity in response to rising sales and increased activity. As a result, staff cost inflation surged to a record high in April, reversing the slowdown in cost pressures seen in March. 'Employment in the non-oil private sector has been particularly vibrant. This surge in employment is a response to rising sales and increased business activity, prompting firms to expand staffing capacities,' said Al-Ghaith. The report added that business activity at Saudi Arabia's non-oil companies increased sharply at the start of the second quarter, with firms commonly reporting an expansion in output due to higher sales, new project approvals, and strong tourist numbers. 'While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending. Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May,' added Al-Ghaith. He further noted that Saudi Arabia had successfully managed inflation compared to other nations, highlighting the Kingdom's effective control of domestic prices amid global uncertainties. The latest PMI data also signalled a steep increase in purchasing activity, with the growth rate reaching a three-month high. S&P Global noted that expectations among non-oil firms for output in one year's time increased slightly from March, although overall business optimism remained below the long-run survey average. Looking ahead, Al-Ghaith said the Kingdom's fiscal prospects remain positive for 2025. 'Forecasts suggest a 3 percent expansion in overall gross domestic product and a 4.5 percent increase in non-oil sectors, continuing the upward trajectory in non-oil activities,' said Al-Ghaith. He added: 'This growth is crucial for sustaining the economic transformation outlined in Vision 2030, which aims to foster diverse, innovative industries.'
Economy ME
05-05-2025
- Business
- Economy ME
Saudi Arabia non-oil sector employment climbs, reflecting continued growth momentum
Saudi Arabia's non-oil private sector activity expansion slowed in April as growth in new orders decelerated sharply, even as hiring rates reached their joint-fastest pace in more than a decade, a survey showed on Monday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slid to 55.6 in April, the lowest reading since last August, from 58.1 in March, while remaining firmly in growth territory. The slowdown in new order growth reflected global economic uncertainties and competitive pressures, with the new order subindex slipping for the third consecutive month to 58.6 in April from 63.2 in March. 'While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending,' Naif Al-Ghaith, Riyad Bank's chief economist said. 'Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May.' The increase in employment was driven by rising sales and business activity, with firms expanding staffing capacity to meet demand. However, the degree of business optimism remained weaker than the long-run survey average, the survey showed. Saudi Arabia's economy grew 2.7 percent in the first quarter, supported by activity in the non-oil sector as the kingdom pushes ahead with diversifying away from hydrocarbons. Read more: Saudi Arabia reports 2.7 percent GDP growth in Q1 2025 driven by non-oil sector Government initiatives support long-term growth The state's statistics authority has updated and expanded its data collection to increase the non-oil sector weighting to better align with international standards and data quality. Despite the easing growth, certain segments within the non-oil sector continue to show resilience. The construction and real estate sectors, for example, have remained relatively stable, supported by government initiatives aimed at boosting housing and infrastructure development. Additionally, the technology and fintech sectors have seen increased activity, driven by a growing demand for digital solutions and services. The Saudi government has been actively promoting initiatives to enhance the business environment, attract foreign investment, and foster innovation across various industries. These efforts are crucial for sustaining long-term growth and reducing reliance on oil revenues.
