Business confidence index in Saudi Arabia rose in June for the third consecutive month, up 1.8% month-on-month, reaching 55.5 points, according to data from the General Authority for Statistics released today.

According to the Financial Analysis Unit of Al-Eqtisadiah newspaper, the rise in the index reflects improved confidence of establishments in current business conditions and their future expectations for activity and economic growth across various sectors, despite the US-Iran war.

The June increase is the third consecutive monthly rise, after three quarters of decline. In March, the index recorded its largest drop since data publication began in early 2023, at 14.2%, coinciding with the start of the war, which raised concerns in the business sector.

However, Saudi Arabia demonstrated clear success in dealing with the war, finding alternative routes for exporting goods away from the then-closed Strait of Hormuz, and finding alternative solutions to avoid impacting economic activities, which drove the economy to grow 2.8% in the first quarter.

Thu, 30 2026

The rise in the business confidence index in June was supported by an increase in its three component sectors: industry, services, and construction.

The industrial sector rose 1.3% month-on-month, the slowest growth rate in three months, while the services sector increased by 1.7%. The business confidence index for the construction sector also rose by 1.9%.

Thu, 09 2026

Saudi Arabia less affected by war

Despite the International Monetary Fund (IMF) lowering its growth forecast for the Saudi economy in 2026 due to the war and lower oil production, Saudi Arabia remains less affected compared to countries in the Middle East and Central Asia region, with its success in finding alternative export routes to continue its supplies to global markets.

This success has pushed Saudi Arabia's growth to be the second highest among the group's economies next year after India, while it is in the middle of the growth list for the current year.

The IMF lowered its forecast for Saudi economic growth for the current year by 1.4 percentage points to 1.7%, assuming a longer closure of the Strait of Hormuz compared to previous assumptions, according to the July issue of the World Economic Outlook, released on Wednesday.

These forecasts show a slowdown in economic growth during 2026, down from 4.6% in the previous year, which was the fastest growth rate in three years.

Growth reached 0.5% and 2.6% in 2023 and 2024 respectively, while it was 12% in 2022.

Wed, 08 2026

According to OPEC data, Saudi oil production in March, which coincided with the war, fell 23% year-on-year and 13% month-on-month to 7.8 million barrels per day.

Saudi Arabia reaches exports of 5 million barrels per day

Despite the war, Saudi Arabia managed to reach exports of 5 million barrels per day via the Yanbu port on the Red Sea coast.

Saudi Arabia benefited from transporting oil away from the Strait of Hormuz via the East-West Petroline pipeline, which has a maximum capacity of 7 million barrels per day, of which 2 million barrels are for domestic refining.

Despite reaching exports of 5 million barrels per day, this remains below pre-war levels, which exceeded 7 million barrels per day.

Regarding 2027, the IMF expects the Saudi economy to rebound and grow by 5.5%, indicating an upward revision of about 0.9 percentage points compared to last April's forecast.

These forecasts make the Saudi economy a candidate for the highest growth in five years, according to the analysis.