RIYADH: Saudi Arabia’s non-oil private sector continued to expand in April, with the Riyad Bank Purchasing Managers’ Index reaching 55.6, indicating sustained growth in business activity, a new survey showed.  

According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the April reading marked a slight drop from 58.1 in March but remained comfortably above the neutral 50.0 mark that separates expansion from contraction. 

Despite the marginal decline, Saudi Arabia’s PMI for April was still higher than the UAE’s reading of 54.0 and Kuwait’s 54.2. 

Naif Al-Ghaith, chief economist at S&P Global Market Intelligence, said: “As of April 2025, Saudi Arabia’s non-oil economy continues to assert itself as a pivotal component of the nation’s economic landscape.”  

He added: “The diversification efforts have continued to bear fruit, underscoring the Kingdom’s strategic shift away from oil dependency toward a more balanced and sustainable economic framework.”  

The PMI survey signalled a strong increase in employment levels across the non-oil private sector in April. 

The rate of hiring growth accelerated to its joint-fastest pace in ten and a half years, matching the level recorded in October 2023, as companies expanded their staffing capacity in response to rising sales and increased activity. 

As a result, staff cost inflation surged to a record high in April, reversing the slowdown in cost pressures seen in March. 

“Employment in the non-oil private sector has been particularly vibrant. This surge in employment is a response to rising sales and increased business activity, prompting firms to expand staffing capacities,” said Al-Ghaith.  

The report added that business activity at Saudi Arabia’s non-oil companies increased sharply at the start of the second quarter, with firms commonly reporting an expansion in output due to higher sales, new project approvals, and strong tourist numbers. 

“While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending. Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May,” added Al-Ghaith.  

He further noted that Saudi Arabia had successfully managed inflation compared to other nations, highlighting the Kingdom’s effective control of domestic prices amid global uncertainties. 

The latest PMI data also signalled a steep increase in purchasing activity, with the growth rate reaching a three-month high. 

S&P Global noted that expectations among non-oil firms for output in one year’s time increased slightly from March, although overall business optimism remained below the long-run survey average. 

Looking ahead, Al-Ghaith said the Kingdom’s fiscal prospects remain positive for 2025. 

“Forecasts suggest a 3 percent expansion in overall gross domestic product and a 4.5 percent increase in non-oil sectors, continuing the upward trajectory in non-oil activities,” said Al-Ghaith.  

He added: “This growth is crucial for sustaining the economic transformation outlined in Vision 2030, which aims to foster diverse, innovative industries.” 

ISLAMABAD: Pakistan successfully conducted the training launch of a surface-to-surface missile with a range of 120 kilometers on Monday, the military’s media wing said, amid fears of Islamabad’s surging tensions with New Delhi resulting in a military confrontation. 

Pakistani and Indian forces have traded intermittent fire along the de facto border between the two states in the disputed Kashmir region since Apr. 26. Tensions between the two countries rose after a militant attack at a popular tourist spot in Indian-administered Kashmir on Apr. 22 killed 26 tourists. India blamed Pakistan for the attack, which Islamabad strongly denied and called for an international probe into the incident. 

Pakistan has warned India of a “decisive” response if it launches any military action against it. On Saturday, Pakistan conducted a successful training launch of the Abdali Weapon System— a surface-to-surface missile with a range of 450 kilometers. 

 “Pakistan today conducted a successful training launch of a FATAH Series surface-to-surface missile with a range of 120 kilometers as part of ongoing Ex INDUS,” the Inter-Services Public Relations (ISPR), the military’s media wing, said. 

The training launch was witnessed by senior officers of the Pakistan Army, as well as officers, scientists and engineers from the country’s strategic organizations, the ISPR said. 

“The launch was aimed at ensuring the operational readiness of troops and validating key technical parameters, including the missile’s advanced navigation system and enhanced accuracy,” it added. 

The military said Pakistan’s chairman joint chiefs of staff committee, and Army Chief General Syed Asim Munir congratulated the participating troops, scientists and engineers. 

“They expressed complete confidence in the operational preparedness and technical proficiency of the Pakistan Army to thwart any aggression against the territorial integrity of Pakistan,” the statement said. 

Pakistan and India have fought two out of three wars over the disputed Kashmir territory. Each side claims the territory in full but administers only parts of it, separated by a de facto border known as the Line of Control (LoC). 

Both countries have taken hostile measures against each other since the attack, including expelling their nationals and suspending bilateral trade. India also announced it was suspending a decades-long water-sharing treaty between the two nations, with Pakistan warning attempts to block or divert its water flow would be considered an “act of war.”

Top Pakistani leaders have reached out to foreign capitals and senior officials in China, United States, Russia, United Kingdom, Saudi Arabia, Iran and other countries, amid fears that India’s possible action over the attack may lead to a wider conflict in the region.