Saudi Arabia’s operating revenues rose 3 percent year-on-year in August, driven primarily by gains in manufacturing and construction, according to the General Authority for Statistics (GASTAT). The data reflects ongoing resilience in business activity across the kingdom amid regional geopolitical tensions.
Manufacturing output grew 7.7 percent compared with August 2025, while construction increased by 3.2 percent over the same period. These advances contributed to overall increases across several sectors, including a 2.2 percent rise in wholesale and retail trade and motor vehicle repair, a 10.8 percent surge in financial and insurance activities, and a 5.8 percent gain in information and communication services.
The performance highlights progress in non-oil private-sector activities as Saudi Arabia intensifies efforts to diversify its economy and reduce dependence on oil revenues. Supporting this outlook, the Riyad Bank Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 55.3 in September from 53.8 in August, indicating the strongest expansion in non-oil private-sector business conditions since February.
However, the monthly Operating Revenues Index experienced a decline in August compared to July, influenced by a 4.7 percent drop in manufacturing, a 1 percent decrease in financial and insurance activities, and a 1.2 percent reduction in information and communication services. Other sectors such as accommodation and food services and professional, scientific, and technical activities also saw drops of 1.2 percent and 1.1 percent, respectively.
Hamza Dweik, head of trading for the Middle East and North Africa at Saxo Bank, noted the significance of growth in manufacturing and construction sectors, emphasizing their role in attracting foreign investment and expanding Saudi Arabia’s industrial infrastructure. He remarked that capital directed toward physical and industrial development tends to yield a more durable impact on the economy compared to investments concentrated solely in financial assets.
Employee compensation in Saudi Arabia also showed notable increases, with the Employees Compensation Index (ECI) rising 6.3 percent year-on-year in August. This was led by a 9.7 percent increase in manufacturing wages and a 4.2 percent rise in the construction sector. Month-on-month, the ECI edged up 0.1 percent, supported by modest gains in manufacturing, construction, and mining and quarrying sectors.
Meanwhile, building permits issued during August totaled 5,621, marking a 19.7 percent decrease from the same month in 2025 and a 3.6 percent decline compared to July, reflecting some cooling in construction approvals despite the sector’s overall growth.
These latest figures portray a mixed yet broadly positive picture of Saudi Arabia’s non-oil economic sectors as the country continues to advance its diversification agenda amid challenging regional circumstances.