RIYADH: Saudi Arabia’s economy is holding up well despite the disruption caused by the ongoing conflict in the Middle East, according to the International Monetary Fund.
A team from organization, which visited the Kingdom from late April to mid-May, said the Kingdom’s strong fundamentals, low government debt, and ample foreign reserves, as well as a large sovereign wealth fund, have provided crucial buffers against the shock.
Quick action by authorities to reroute oil shipments via the East-West pipeline and Red Sea ports, combined with Aramco’s overseas inventories, helped limit the impact on oil deliveries after maritime traffic through the Strait of Hormuz was curtailed.
The Kingdom entered 2026 on a strong footing, having posted gross domestic product growth of 4.5 percent in 2025, driven by the unwinding of OPEC+ production cuts and solid domestic demand. Inflation had eased to below 2 percent heading into the year.
“The Saudi economy is demonstrating agility and resilience, supported by robust and diversified infrastructure and the authorities’ concerted efforts to redirect shipments and ease logistical bottlenecks,” said Azim Sadikov, who led the IMF mission.
