RIYADH: Corporate stability helped Saudi Arabia’s private sector maintain its continued expansion in the third quarter of the year, according to a government analysis.
MEPX, a composite index released by the Ministry of Economy and Planning, underscored the resilience of the Saudi private sector amid global economic uncertainty.
According to the ministry’s report, the sub-indicators for the MEPX suggest a rebalancing in the performance of consumer-related factors, particularly in point-of-sale transactions and cash withdrawals.
Additionally, the performance of company-related indicators remained relatively stable, while financial measures “remained soft” due to the impact of tight global monetary conditions.
The ministry introduced the MEPX indicator in October 2022 to monitor and analyze economic trends and data disseminated by national authorities.
The index was created to offer economists, policymakers, and business leaders trajectory analyses and predictions for short and medium-term growth, thereby promoting sustainable progress.
This initiative assessed evolving economic trends and provided actionable insights for officials and decision-makers.
Furthermore, it is designed to track 10 economic factors classified into four categories: consumers, firms, and the financial and trade sectors.
Using econometrics techniques, MEPX helps extrapolate the business cycle of the Kingdom’s private sector and provides analysis to officials and decision-makers.
Reflecting the Kingdom’s ambition to propel growth in new industries, Saudi Vision 2030 is powered by business owners, private sector expansion and paving the way for a promising future.
The robust expansion of the private sector in the third quarter of 2023 signifies economic growth and contributes significantly to addressing employment needs in Saudi Arabia.
According to a National Labor Observatory report released in October, the number of Saudis in the private sector increased 10.5 percent in the second quarter to reach 2.2 million, driven by a robust economic rebound that increased the workforce.
This data represents a positive trend in the employment sector as the private sector continues to expand its workforce, creating opportunities for Saudi citizens.
It also revealed an average quarterly growth of about 42,000 citizens in the private sector until the current year’s second quarter.
Additionally, it examined industry developments and Saudization numbers for jobs in private sector firms across the Kingdom.
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