Standard Chartered Bank expects business activity in Saudi Arabia to gain stronger momentum during the third quarter of 2026, supported by strong domestic demand, improved regional trade conditions, and the Kingdom's continued progress on its economic diversification path.

The bank's global research division analyses indicate that the Saudi economy entered the second half of the year with strong momentum, with point-of-sale transactions rising 6% year-on-year in May, reflecting robust consumer spending and its role as a key driver of economic activity.

The bank believes that continued investment, declining inflationary pressures, and improving labor market conditions will support purchasing power and business confidence in the coming period.

A survey published yesterday (Sunday) showed that Saudi Arabia's non-oil private sector strengthened its growth pace in June, supported by the strongest rebound in new business volumes in four months, despite companies continuing to suffer from severe cost pressures and weak external demand.

Saudi Arabia's seasonally adjusted Purchasing Managers' Index (PMI) issued by Riyad Bank rose to 53.3 in June from 52.8 in May, recording its highest reading in four months and indicating a strong improvement in operating conditions at the end of the second quarter, after investor confidence was boosted by easing geopolitical tensions and increased domestic spending.

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