Despite inflationary pressures, optimism is abound amongst Saudi businesses as a survey published on Tuesday affirmed. In March, the Riyad Bank Saudi PMI (Purchasing Managers’ Index) recorded 58.7, still in the zone of growth yet a step down from an eight-year peak of 59.8 the previous month.
To keep staffing afloat and workers suitably compensated in the face of higher living costs, businesses have resorted to increasing salaries, the survey reflected. This had led to input costs rising to their highest this year due to both raw material prices and payrolls.
However, with cutthroat competition in the market, companies have had difficulty managing to pass on the increasing prices to customers, with some even reducing rates. Nonetheless, their confidence in the future of their sector remains steadfast.
Riyad Bank is one of the largest and most successful financial institutions in Saudi Arabia. It provides a range of retail and corporate banking services, investment banking, and treasury solutions. It offers the latest tools and technology to meet the ever-evolving needs of its customers. Naif Al-Ghaith, Chief Economist at Riyad Bank, is a highly respected industry figure who is an integral part of helping Saudi businesses weather the economic storm and find ways to succeed. His insights and expertise are invaluable.
Overall, Saudi firms are finding ways to stay optimistic despite the difficult economic climate. Dialogue between the government, firms and financial institutions is helping weather the storm, paving the way for a brighter future for the business sector.
