Saudi Arabia’s private sector sees expansion in 2024

Dubai: Corporate stability has driven steady growth in Saudi Arabia’s private sector during the second quarter of the year, with expectations for this momentum to persist through the end of the year.

The ministry of economy and planning's private sector business cycle composite Index (MEPX) highlighted that the strong performance of various sub-indices has contributed to ongoing expansion.

The ministry noted that the Saudi non-oil sector's business cycle reached a peak at the end of 2022, with a gradual adjustment occurring since then.

Introduced in 2022, the MEPX tracks the country’s private sector performance by evaluating 10 economic factors across four categories: consumers, firms, finance, and trade.

Using advanced econometric techniques, MEPX offers crucial insights for policymakers and decision-makers.

The ministry forecasts that MEPX will maintain its current stability over the next four months.

The ministry pointed out that strong consumer-related indicators have positively impacted the index, according to the ministry’s press release.

A 6.7 per cent year-on-year increase in the money supply reflects a gradual improvement in financial conditions, despite anticipated delays in interest rate reductions this year.

Saudi Arabia has implemented various economic reforms aimed at creating a supportive business environment and enhancing the quality, efficiency, and digitisation of services for the private sector.

Numerous programmes, initiatives, funds, incubators, and accelerators have been established to address challenges and position the private sector as a key driver of the country’s economy.