RIYADH: Business activity in Saudi Arabia and the UAE is poised for stronger momentum in the third quarter of 2026, driven by resilient domestic demand, improving regional trade conditions, and ongoing economic diversification efforts, according to Standard Chartered.
In its latest report, the financial institution said the Kingdom entered the second half of the year with solid underlying economic activity despite regional uncertainties, with point-of-sale transactions, a key indicator of consumer spending, rising 6 percent year-on-year in May, returning to levels seen in January.
Affirming the resilience of the Saudi economy, a report by the Organization for Economic Co-operation and Development published in June projected that the Kingdom’s gross domestic product is expected to expand by 3.2 percent this year, before accelerating to 4.3 percent in 2027.
These projections broadly align with the International Monetary Fund’s April forecasts, which put Saudi growth at 3.1 percent in 2026 and identified the Kingdom as among the least affected Gulf economies due to the regional conflict involving Iran. The IMF also raised its 2027 growth forecast to 4.5 percent, assuming energy production and transport normalize in the coming months.
