Saudi companies ramp up hiring and wages in February 2026 as PMI drops to 54.2, signaling resilience amid economic pressures and Vision 2030 diversification.
Riyadh, Saudi Arabia – Saudi private sector firms increased hiring and pay at the fastest pace in months, even as the S&P Global PMI slipped to a nine-month low of 54.2 in February 2026. This reading, down from 55.7 in January, reflects softer output growth and new orders due to regional tensions and supply chain strains, yet remains above the 50 expansion threshold.[ from prior context]
Business optimism held firm, driving robust job creation—particularly in services and construction—as companies invested in capacity ahead of mega-projects under Vision 2030. Payroll costs rose sharply, the highest since mid-2024, signaling confidence in sustained demand despite inflationary pressures from oil price volatility.[ adapted]
Economists highlight non-oil sector strength, with purchasing activity up and future sales expectations elevated. “Firms are prioritizing talent to support long-term growth,” noted an S&P Global analyst. Challenges persist from geopolitical risks, but recruitment surged across SMEs and large enterprises alike.
This divergence underscores Saudi Arabia’s economic resilience, balancing global headwinds with domestic diversification efforts. Stakeholders anticipate a PMI rebound if stability returns, reinforcing the Kingdom’s appeal to investors.
