Saudi businesses hiring at fastest pace in 10 years: Riyad Bank

Dubai: Optimism among Saudi businesses is at its highest point in 18 months, with the construction sector being the best performing in terms of activity and new project wins during May.

This optimism is showing up in hiring activity, with businesses intent on taking in new staff as part of higher spending on expansion. This led to new job creation running up its highest monthly tally in more than 10 years, according to the latest PMI data from Riyad Bank.

“A marked rise in sales was accompanied by increasing business confidence about the coming 12 months,” says the report which tracks the Purchasing Managers Index scores. (The PMI is based on companies’ investment plans, new order wins, hiring data, etc.)

A lot of that confidence is reflected in job expectations, with Gen Z professionals in Saudi Arabia supremely confident about their chances to net a new employer in no time.

"Hiring momentum remained strong as companies expanded teams to support output growth, particularly in operations and sales," said Naif Al-Ghaith, Chief Economist at Riyad Bank,

"These indicators point to a non-oil sector that remains firmly in expansion territory—buoyed by resilient demand, growing confidence, and operational readiness for continued growth in the second-half of the year."

During May, new orders were streaming in for Saudi businesses. That's a major turnaround 'after softening to an eight-month low in April', says the Riyad Bank report.

"Surveyed businesses linked rising new orders to increased demand, strong sales performances, industrial development and new marketing initiatives. New orders from abroad also grew, but at the softest pace in seven months."

For May, the Saudi Purchasing Managers Index score was 55.8, up from the 55.6 in April - but it is still lower than the recent peak of 60.5 at the start of the year.

"Firms reported improvements in demand, new project starts, and greater labour capacity as key drivers," said Al-Ghaith. "This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter."