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Saudi Arabia’s Non-Oil Sector Surges To Its Strongest Growth In Over A Decade

by THEFUTURE.TEAM

February 4, 2025

Saudi Arabia’s non-oil economy experienced its most significant growth in more than 10 years this January, driven by an increase in new orders and dynamic business activity, according to the latest survey released on Tuesday.

Record-Breaking Expansion In Non-Oil Activity

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) jumped to 60.5 in January, up from 58.4 in December. This marks the highest reading since September 2014, signaling continued expansion as any PMI reading above 50 indicates growth.

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The surge was mainly fueled by a remarkable spike in new orders, which grew at the fastest pace since June 2011. The New Orders Index rose to 71.1 in January, a significant leap from 65.5 in December. This robust demand was attributed to strong economic conditions and a wave of new infrastructure projects, boosting both domestic and export sales.

Naif Al Ghaith, Chief Economist at Riyad Bank, noted that the growth in export orders complemented domestic demand, particularly from GCC nations, reflecting effective marketing strategies and competitive pricing.

Broad-Based Growth Across Sectors

Saudi Arabia’s non-oil sector saw a significant uptick in activity throughout January 2025, with the expansion spreading across all industries. Businesses were not only ramping up production but also hiring more staff for the ninth consecutive month to help manage increased demand and clear backlogs.

The survey revealed that 35% of companies had increased their input purchases, and delivery times were notably shorter — the most significant decrease in 10 months. With the anticipation of continued demand, firms increased their inventories, bringing stock levels to their second-highest point since 2009.

However, this surge in demand did come with its challenges. Input prices climbed at their second-fastest rate in over four years, driven by both stronger demand and external geopolitical factors. This prompted companies to increase output prices at the fastest rate in a year.

Economic Outlook And Growth Drivers

Saudi Arabia’s economy grew by 1.3% year-on-year in 2024, buoyed by the robust performance of its non-oil sector, as per preliminary data.

The growth was primarily fueled by a 4.3% increase in non-oil activities and a 2.6% rise in government services, according to the General Authority for Statistics (GASTAT). However, the oil sector faced challenges, contracting by 4.5% during the year.

This mixed performance underscores the ongoing efforts of Saudi Arabia to transition from an oil-dependent economy to one with more diverse sources of revenue.

The fourth quarter of 2024 saw a more impressive performance, with real GDP expanding by 4.4% compared to the same period in 2023, marking the highest quarterly growth in two years. This surge was largely driven by non-oil activities, which grew by 4.6%. The oil sector posted a modest growth of 3.4%, while government activities rose by 2.2%.

Saudi Arabia’s ongoing diversification efforts are clearly paying off as the country makes significant strides in reducing its reliance on oil, positioning itself for sustainable economic growth in the years to come.

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EU Moderates Emissions While Sustaining Economic Momentum

by THEFUTURE.TEAM

November 15, 2025

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.