Saudi non‑oil private sector contracted in March 2026, first decline since 2020, PMI fell to 48.8 from 56.1.
New‑order subindex plunged to 45.2 from 61.8, reflecting sharp drop in export demand amid Strait of Hormuz blockade.
Riyad Bank chief economist Naif Al‑Ghaith cited extreme geopolitical uncertainty and warned of non‑linear growth risks if blockade persists past mid‑April.
Despite slowdown, firms see government infrastructure spending as floor, though the contraction challenges Saudi’s 2026 fiscal targets reliant on non‑oil growth.