Prime Highlights:
- Saudi Arabia’s Operating Revenue Index rose 5% year on year in November, led by strong growth in manufacturing, trade, and construction.
- Rising wages and non-oil sector expansion show steady progress toward Vision 2030 goals.
Key Facts:
- Building permits jumped 28.4% year on year in November, reaching 8,034, signaling strong infrastructure and real estate activity.
- Manufacturing grew 6.5% and wholesale & retail trade rose 9.5% compared to last year, reflecting healthy domestic demand.
Background:
Saudi Arabia’s economy continued to show strength in November, with the Operating Revenue Index rising 5 percent compared to the same month last year, according to official data. The growth was mainly driven by stronger activity in manufacturing, trade, and construction.
Official data showed manufacturing rose 6.5 percent year on year, while wholesale and retail trade, including vehicle repairs, grew by 9.5 percent, reflecting steady demand in non-oil sectors. Construction also expanded by 7.4 percent, while financial activities increased by 14.4 percent and insurance by 8.6 percent. Overall, the figures highlight Saudi Arabia’s continued progress in expanding its non-oil economy under Vision 2030.
On a monthly basis, the Operating Revenue Index fell by 1.2 percent from October. GASTAT said the decline was due to weaker results in some areas, including a 3.8 percent drop in mining and quarrying and a sharp 25.8 percent fall in electricity, gas, steam, and air conditioning supply. These figures suggest that growth was uneven across sectors toward the end of the year.
Labor market indicators reflected stronger underlying economic activity. The Employees Compensation Index rose 13.6 percent year on year in November, supported by an 18.8 percent increase in manufacturing-related compensation and a 10.5 percent rise in wholesale and retail trade. On a monthly basis, employee compensation edged up by 0.1 percent, indicating modest but steady wage growth.
Construction data also showed rising investment. Building permits increased by 28.4 percent to 8,034 in November and rose 7.7 percent from October, showing ongoing strength in infrastructure and real estate.
Overall, non-oil growth and higher wages reflect steady progress toward Saudi Arabia’s Vision 2030 goals.
