S&P Global Expects Saudi Economy to Grow 2.6% by 2026

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The credit rating agency S&P Global expects the Saudi economy to achieve the highest positive growth rate among Gulf countries this year, at around 2.6%. The agency said in a recent report that its baseline scenario assumes a gradual easing of tensions in the Arabian Gulf region, with average oil shipments in the second half of this year expected to reach 75% of pre-war volumes, and Brent crude oil prices averaging $110 per barrel for the remainder of this year and $80 per barrel in 2027. It explained that the continuation of the Hajj and Umrah seasons helped mitigate the impact of tensions on the tourism sector, while domestic tourism compensated for a large part of the decline in international visitor numbers, enhancing the Kingdom's ability to attract tourism in the future. The agency also pointed out that the Saudi real estate sector enjoys better stability factors than some Gulf markets, thanks to the high proportion of citizen buyers, which reduces risks associated with fluctuations in foreign investment. In the construction sector, despite an expected increase in execution costs of between 5% and 8% during 2026, the Kingdom continues to implement 421 projects with a total value of $168 billion, reflecting the strength of investment activity and continued spending on major projects.

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