Economy

S&P: Saudi Economy to Be Highest Growth in GCC

Medina - Riyadh

Date of publication: July 23, 2026 01:40 KSA

Implementation of projects worth $168 billion

S&P Global Ratings expects the Saudi economy to record the highest growth rate among GCC economies this year, at 2.6%, noting the continued implementation of 421 projects with a total value of $168 billion, reflecting the strength of investment activity and continued spending on major projects.

These forecasts surpass the recent IMF estimates that projected Saudi economic growth at 1.7%. The agency affirmed that the Kingdom has a strong capacity to withstand economic shocks, based on strong financial reserves and net assets, which supports the stability of the country's creditworthiness even amid continued regional uncertainty.

The report noted that the baseline scenario assumes a gradual easing of disruptions, with an average Brent crude price of $110 per barrel for the remainder of this year, supporting the financial positions of oil-producing countries, foremost Saudi Arabia. It explained that the continuation of the Hajj and Umrah seasons helped mitigate the impact of tensions on the tourism sector, while domestic tourism offset a large part of the decline in international visitor numbers, enhancing the Kingdom's ability to attract tourism in the future. The agency also indicated that the Saudi real estate sector enjoys more stable factors than some Gulf markets, thanks to the high proportion of local buyers, reducing risks associated with foreign investment fluctuations. In the construction sector, despite expected cost increases of between 5% and 8% in 2026, the Kingdom continues to implement 421 projects with a total value of $168 billion, reflecting strong investment activity and continued spending on major projects. Factors of Saudi economic strength: continued implementation of strategic projects. Strong financial reserves. Diversified sources of domestic demand. Most capable of achieving growth. Absorbing repercussions of regional tensions.