Dubai : Saudi Arabia’s private sector is experiencing a hiring surge not seen in over a decade, driven by rising business confidence and strong growth in the construction sector. According to the latest Purchasing Managers’ Index (PMI) report from Riyad Bank, May saw the highest pace of job creation in more than 10 years.
The report highlights an 18-month high in overall business optimism, with increased investments, a sharp rise in new orders, and renewed expansion strategies fueling the hiring momentum.
“A marked rise in sales was accompanied by increasing business confidence about the coming 12 months,” the report noted, reflecting a surge in forward-looking sentiment across Saudi enterprises.
Construction Leads the Boom
Among the sectors, construction emerged as the top performer, benefiting from new project wins and sustained activity. Companies across industries are expanding their teams—particularly in operations and sales—to meet growing demand and support output growth.
“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,” said Naif Al-Ghaith, Chief Economist at Riyad Bank.
New Orders Rebound in May
May marked a strong recovery in new business activity, reversing the slowdown seen in April, which had hit an eight-month low. Surveyed businesses attributed the upturn in new orders to increased domestic demand, stronger sales performance, industrial development, and enhanced marketing initiatives.
While international demand grew at a more modest pace, new export orders still recorded an uptick, albeit the slowest in seven months.
PMI Remains Firmly in Growth Zone
The Saudi PMI rose slightly to 55.8 in May, up from 55.6 in April, indicating continued expansion. Though still below the recent high of 60.5 recorded earlier in the year, the score remains well above the neutral 50-mark, signaling growth.
“Firms reported improvements in demand, new project starts, and greater labour capacity as key drivers,” said Al-Ghaith. “The overall expansion, while slightly softer than peak levels, reflects solid operating conditions and sustained confidence in the private sector at the midpoint of 2025.”
Youth Optimism High
The buoyant job market is also boosting morale among younger professionals, with Gen Z workers in Saudi Arabia increasingly confident about their employment prospects. This sentiment reflects the broader optimism sweeping across the Kingdom’s evolving non-oil economy.
