Economy

Saudi Arabia’s economic outlook has improved, with the International Monetary Fund raising its growth forecast as OPEC+ production cuts ease. The nation’s economy is now expected to expand by 3.5% this year, up from an earlier estimate of 3%, and by 3.9% in 2026. The IMF highlighted Saudi Arabia’s resilience, noting growth in non-oil sectors, stable inflation, and historically low...

AI's Economic Potential in Saudi Arabia and the UAE Generative AI is expected to bring significant economic gains to Saudi Arabia and the UAE by 2030, with projections of SAR 727 billion and AED 298 billion in added value, representing a notable share of each country's economy. Many adults in both countries feel they are not fully utilizing AI tools,...

Saudi Arabia has secured 17th place in the latest global competitiveness index, maintaining its position among the world’s top 20 economies and surpassing countries like the UK, Germany, and France. This ranking reflects ongoing improvements in governance, infrastructure, and regulatory frameworks, as well as the country’s efforts to diversify its economy. The World Competitiveness Ranking, compiled by the International Institute...

Saudi Arabia’s annual inflation held steady at 2.2 percent in May, according to the General Authority for Statistics. This rate keeps the Kingdom among the G20 nations with the lowest inflation levels. The Consumer Price Index, tracking the cost of a set basket of 490 goods and services, is updated monthly based on extensive price checks across the country. Private...

Saudi Arabia has revised its first-quarter economic growth figures upward, with a notable boost from non-oil sectors. The latest data shows real GDP expanded by 3.4% year-on-year, surpassing earlier projections. Non-oil activities led the way, growing nearly 5%, while government services also posted gains despite a slight drop in oil-related output. Key industries such as retail, hospitality, and finance experienced...

Saudi Arabia is intensifying efforts to regain lost oil market share and address overproduction by some Opec+ members, signaling the start of a prolonged but moderate price war, according to industry experts. After years of encouraging Opec+ production cuts to support energy prices, Saudi Arabia recently shifted course by increasing supply. This move is seen as a response to both...

Saudi Arabia’s economy continues to be driven by oil, but efforts under Vision 2030 are accelerating diversification into sectors like financial services, tourism, manufacturing, and petrochemicals. While oil remains the major GDP contributor, non-oil industries are gaining momentum. The nation’s GDP contracted in 2020 due to the pandemic and again in 2023 following a significant reduction in oil production. However,...

Saudi Arabia has reduced its official selling price for Arab Light crude oil to Asia for July, setting it at $1.20 per barrel above the Oman/Dubai average. This marks a 20-cent drop from June and is the lowest price since May. Despite the cut, it was less than many analysts anticipated, as expectations ranged between 40 to 50 cents. This...

Saudi Arabia’s non-oil private sector saw improved business conditions in May, as indicated by the Riyad Bank Purchasing Managers’ Index rising to 55.8. This uptick reflects ongoing economic growth, with the index remaining well above the threshold that signals expansion. The PMI’s increase from April highlights a rebound in new orders, driven by stronger demand, better sales, and active industrial...

Saudi Arabia's 2025 budget outlines a 3% deficit as the country balances fiscal discipline with ambitious economic reforms. Despite a recent dip in oil revenues due to production cuts, rising non-oil income and controlled spending signal a shift towards sustainable growth. The budget relies on a mix of domestic and external borrowing, with public debt managed to support economic stability....

OPEC+, a coalition led by Saudi Arabia and Russia, recently faced internal disagreements over oil production policies. Saudi Arabia pushed for a quicker increase in output, while Russia preferred to pause, citing concerns about demand. Despite these differences, a compromise was reached to raise production by 411,000 barrels per day starting in July, matching increases from the previous two months....

Saudi Arabia’s non-oil private sector maintained strong momentum in April, as shown by a Purchasing Managers’ Index reading of 55.6. While this was a slight decrease from the previous month, it still reflected solid expansion and outperformed similar measures in neighboring countries. Growth was marked by a surge in employment, with hiring reaching its fastest pace in over a decade....

Saudi Arabia's non-oil private sector experienced slower growth in April, as a sharp drop in new orders offset an upswing in hiring. The latest Riyad Bank Purchasing Managers' Index fell to 55.6, its lowest since last August, indicating expansion but at a reduced pace compared to the previous month. The deceleration in new orders was attributed to global economic uncertainty...

Saudi Arabia is rapidly advancing its hydrogen economy, investing heavily in both green and blue hydrogen to achieve its goal of generating half its electricity from renewables by 2030 and reaching net-zero emissions by 2060. Major projects led by national energy firms are central to this strategy. For instance, the Sudair solar plant aims to cut 2.9 million tonnes of...

Saudi Arabia is managing a period of low oil prices and cautious foreign investment in its major projects with apparent confidence. Despite a drop in oil revenues and scaled-back ambitions for developments like the Neom megacity, the kingdom remains financially stable, according to industry observers. Oil still makes up around 61% of Saudi Arabia’s income, but leaders are working to...

Saudi Arabia’s economic growth has slowed, largely due to a steep drop in oil prices and ongoing global trade tensions. Recent data shows the non-oil sector expanded by 4.2%, but overall GDP growth was limited to 2.7%, with oil-related activities shrinking by 1.4%. This performance puts Saudi Arabia behind its own non-oil growth targets for the year. The International Monetary...

Saudi Arabia’s economy saw growth in the first quarter, driven mainly by stronger non-oil sector performance as the country continues its push to diversify beyond hydrocarbons. According to preliminary government data, real GDP rose by 2.7% compared to the same period last year. The national statistics authority recently updated its data methods, revising GDP calculations to give more weight to...

Saudi Arabia is signaling a shift in its oil market approach, telling allies and industry insiders that it will not support further supply cuts and is prepared to withstand a period of lower oil prices. This marks a potential departure from its recent strategy of maintaining higher prices through production limits as a leading OPEC+ member. The kingdom’s new stance...

Oil prices have dropped recently due to concerns over a potential US-China trade war and OPEC+’s unexpected decision to boost production. This decline is putting pressure on economies in the Middle East that rely heavily on oil revenue, especially Saudi Arabia. Analysts expect oil prices to remain low for the next few years, with major banks predicting Brent crude to...

Saudi Arabia’s non-oil exports hit a record SR515 billion in 2024, reflecting a 13% rise from the previous year and more than doubling since Vision 2030 began. Growth spanned all sectors, with merchandise exports reaching SR217 billion, supported by increases in both petrochemical and non-petrochemical categories. Re-exports soared to SR90 billion, marking a 205% jump since 2016, driven largely by...

Saudi Arabia faces mounting fiscal challenges as the International Monetary Fund has sharply increased its projection for the kingdom's government debt. The IMF now expects Saudi debt to reach 44.5% of GDP by 2029, a notable jump from last year's estimate of 35.3%. This revision comes as declining oil prices cut into national revenues and economic growth prospects. The Saudi...

Saudi Arabia's inflation rate reached 2.3% in March, marking a 20-month high, according to the General Authority for Statistics. While this increase is modest compared to global standards, it reflects rising pressures on the cost of living. The main contributor to inflation remains housing costs, but other factors are becoming more significant. A weaker dollar, to which the riyal is...

OPEC+ is moving to increase oil production by 411,000 barrels per day in May, as eight member countries accelerate the phase-out of previous output cuts. This decision comes amid ongoing market volatility and follows recent shifts in U.S. trade policies that have introduced new tariffs, impacting global oil dynamics. Saudi Arabia, which has been carrying the bulk of OPEC+ production...

Saudi Arabia and the UAE have introduced new currency symbols for the riyal and dirham, marking a strategic effort to gain global financial recognition. These symbols, launched within weeks of each other, aim to modernize and stabilize their currencies on the international stage. Saudi Arabia led the initiative with King Salman approving a new riyal symbol, combining Arabic calligraphy with...

Saudi Arabia's liquidity reached a remarkable SAR3.033 trillion by February 2025, marking a significant increase in available funds within the economy. This represents an annual rise of SAR277.49 billion, or 10.1%, from the previous year's SAR2.756 trillion, as reported by the Saudi Central Bank. Monthly liquidity also saw growth, increasing by SAR67.543 billion, or 2.3%, from January's SAR2.966 trillion. This...

Saudi Arabia has launched a 5 percent Real Estate Transaction Tax (RETT) starting April 10, aimed at supporting economic diversification. This new tax is applicable to all property transactions, including residential, commercial, and industrial, regardless of their development status or ownership type. It also covers undocumented transactions. Property transfers must be registered via the RETT platform on the Zakat, Tax...

Saudi Arabia faces mounting fiscal pressure as falling oil prices, increased crude supply, and global economic uncertainty threaten to widen its budget deficit. Economists warn that if oil prices remain around $62 per barrel, the kingdom's deficit could more than double, reaching up to $75 billion. Ambitious projects under Vision 2030, including the $1.5 trillion Neom mega-development and preparations for...

Saudi Arabia is shifting its focus from oil to gold, aiming to capitalize on the rising value of precious metals. The kingdom is investing in advanced mining technologies to enhance both production and consumption of gold, positioning itself as a key player in the global market. The region's economic landscape is also witnessing significant developments. The UAE is channeling $1.5...

Accesso Technology Group PLC has been selected as the guest experience technology provider for the Qiddiya entertainment project in Saudi Arabia. Located southwest of Riyadh, Qiddiya covers over 300 square kilometers and is a key part of Saudi Vision 2030. It will feature attractions such as the Six Flags Qiddiya theme park and the Aquarabia water park. Accesso will implement...

The International Monetary Fund (IMF) has acknowledged Saudi Arabia’s ongoing support and leadership in global financial matters. During a recent International Monetary and Financial Committee (IMFC) meeting held in Diriyah, IMF Managing Director Kristalina Georgieva expressed appreciation for Saudi Arabia’s contributions, highlighting the country’s pivotal role in strengthening economic stability worldwide. Georgieva emphasized that Saudi Arabia’s current chairmanship of the...