Saudi Arabia's non-oil private sector continued to expand at the start of 2026, a survey showed on Tuesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index fell to 56.3 in January from 57.4 in December, although firmly in expansion territory.
Business activity was buoyed by strong market demand, new projects, and stronger client activity, although new order growth remained almost flat in January.
The New Orders sub-index rose to 61.9, from December's 61.8, with volumes driven by positive domestic conditions and a rise in export sales, particularly to GCC and Asian countries.
"Survey evidence points to ongoing strength in output and sales, underpinned by newly approved projects, steady customer enquiries, and improved investor activity, even as growth momentum moderated," said Naif Al-Ghaith, Riyad Bank's chief economist.
The rate of employment growth softened to the slowest in a year, despite a solid upturn in staffing numbers, as companies sought employees with technical expertise.
Saudi firms remained optimistic in January about future output, supported by rising orders and resilient economic conditions.
