Saudi Arabia’s operating revenues rose 4.9 percent year-on-year in July, driven primarily by gains in manufacturing as well as financial and insurance sectors, according to preliminary data from the General Authority for Statistics (GASTAT). The Operating Revenues Index also increased 1.2 percent compared to June.

Manufacturing revenues showed the most significant growth, climbing 13.5 percent from the same month last year. Financial and insurance activities grew by 9 percent, while information and communication sectors increased 6.5 percent. Other sectors, such as wholesale and retail trade and the repair of motor vehicles and motorcycles, recorded a modest rise of 0.8 percent. Construction activities advanced by 1.6 percent during the period.

These figures align with ongoing expansion in Saudi Arabia’s non-oil private sector. The Riyad Bank Purchasing Managers’ Index, compiled by S&P Global, reached 53.8 in August, up from 53.1 in July, marking a six-month high and indicating the fastest growth in the non-oil private sector over that period.

On a monthly basis, GASTAT noted a 1.2 percent increase in the Operating Revenues Index for July, supported by various sectoral advances: manufacturing up 0.8 percent, mining and quarrying 6.4 percent, construction 0.1 percent, information and communication 3.7 percent, and accommodation and food services 0.6 percent.

This industrial growth is consistent with Saudi Arabia’s broader economic diversification strategy, which focuses on enhancing domestic manufacturing capabilities, localizing supply chains, and increasing exports outside the oil sector. Manufacturing operating revenues had previously grown 9.6 percent year-on-year in May, with a monthly increase of 0.6 percent from April. The number of industrial establishments, including those licensed and either operational or under construction, rose to 13,660 by the end of April, up from 12,289 a year earlier.

Employee compensation also rose, with the Employees Compensation Index (ECI) increasing 7.4 percent year-on-year in July. Gains were most notable in manufacturing, which saw a 10.3 percent rise, followed by construction at 4.6 percent, wholesale and retail trade and vehicle repair at 6.2 percent, and financial and insurance activities at 6.4 percent. Monthly, the ECI edged up 0.3 percent, supported by increases in mining and quarrying (0.3 percent), financial and insurance activities (0.1 percent), transportation and storage (0.8 percent), information and communication (1.8 percent), and human health and social work activities (2.6 percent).

In addition, the number of building permits issued grew 4.4 percent year-on-year to 5,828 in July, from 5,582 in the same month the previous year. This figure also surpassed June’s total by 15.5 percent, increasing from 5,045 permits.

GASTAT’s short-term business statistics track monthly indicators across various economic sectors, providing insights into the performance and development of Saudi Arabia’s business environment.