Saudi PMI falls to 56.1 points in February

Riyad Bank Saudi Arabia PMI remains well above the neutral 50-mark

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, dropped to 56.1 points in February 2026, maintaining a downward trajectory since reaching its highest level in more than 10 years in October 2025.

According to the report, overall operating conditions remained solid, with the headline index well above the neutral 50-mark, while sub-indices for output and new orders pointed to a healthy operating environment.

The report noted the weakest improvement in non-oil business activity in nine months. However, demand growth and output expansion remained strong, further supporting the labor market and leading to the sharpest increase in wage costs since the survey began.

Although non-oil output growth eased to a six-month low, it remained robust in February. Firms surveyed cited improved customer demand and a rise in approvals for new projects, though some flagged competitive pressures across markets as a drag on growth.

New orders expanded in February, largely driven by stronger domestic sales. Respondents attributed the increase in new business to supportive government policies, improved customer spending, intensified sales and marketing efforts, digital business development and collaborative projects with clients. International orders also improved, albeit at a slower pace of expansion.

The PMI is a weighted average of the following five indices: