A Purchasing Managers' Index (PMI) value above 50 indicates an expanding private sector. According to Riyad Bank, demand for goods and services has been driven by both the domestic market and growing exports abroad.

Economic Opening Fuels the Boom

According to economist Nasser Saidi, banks are benefiting from the current developments. «Deposit growth in Saudi Arabia averaged 8.9% from January to August 2025; in August, loan growth outpaced deposit growth for the 19th consecutive month.»

In anticipation of sweeping reforms intended to prepare the economy for a post-oil future, the influx of foreign companies and startups remains unbroken. Starting January 1, 2026, foreigners will be allowed to purchase property in designated zones in Saudi Arabia.

The highest reading of the Riyad Bank PMI since March 2025 is being seen as a harbinger of a robust fourth quarter, as the final three months of 2025—unlike the first half of the year—are not interrupted by religious holidays. This year, the Islamic fasting month of Ramadan fell at the end of last winter, and the national holiday took place on September 23. There are no Christmas holidays in Saudi Arabia, as the Quran—the holy book of Islam—forms the foundation of all legislation.

Bottlenecks in Air Traffic and Resorts

The boom in the Saudi economy has led to a veritable run on flight tickets and hotel stays. The result: civil aviation and the hospitality industry are reaching their capacity limits. Hotels in the capital Riyadh and in Jeddah on the Red Sea report occupancy rates of over 95 percent. Many business travelers from Europe, Asia, and the Americas complain about insufficient direct connections to King Khaled International Airport and must arrive via detours, such as through Dubai or Doha.

Getting a taxi early in the morning is a test of patience. Even preemptively installing multiple apps like Uber on one's smartphone helps little. Waiting times of up to an hour are not uncommon. A slight relief during rush hour is provided by the Riyadh Metro, which majestically hovers over the main roads and primarily serves the city center, though not all outlying districts. Still, the world’s longest driverless rail network, which opened in November 2024 and includes 85 stations, welcomed 100 million passengers in its first nine months. The modernization of the only G20 country in the Middle East is advancing at a rapid pace.