Standard Chartered Bank expects that business activity in Saudi Arabia will 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 the path of economic diversification.

Spending resilience

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

The bank believes that continued investment, a decline in inflationary pressures, and improved labor market conditions will support purchasing power and business confidence during the upcoming period.

Strong improvement

A report published yesterday showed that the non-oil private sector in Saudi Arabia accelerated its growth pace in June, supported by the strongest recovery in new business volumes in four months.

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

Standard Chartered Bank expects that business activity in Saudi Arabia will 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 the path of economic diversification.

Robust Spending

Global research department analyses at the bank indicate that the Saudi economy entered the second half of the year with strong momentum, with point-of-sale transactions rising by 6% year-on-year in May, reflecting the robustness of consumer spending and its role as a key driver of economic activity.

The bank believes that continued investment, a decline in inflationary pressures, and improved labor market conditions will support purchasing power and business confidence in the upcoming period.

Strong Improvement

A report published yesterday showed that the non-oil private sector in Saudi Arabia accelerated its growth pace in June, supported by the strongest recovery in new business volumes in four months.

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