The International Monetary Fund (IMF) stated that the Saudi economy remains resilient amid recent regional developments, supported by strong economic fundamentals that helped limit disruptions across trade, shipping, and energy markets.
The IMF now projects Saudi Arabia’s economy to grow by around 2% in 2026, down from its 3.1% forecast in April. The Fund noted that non-oil activity and business confidence have been affected by regional developments.
Economic Resilience Backed by Strong Fundamentals
According to the IMF, low government debt levels and substantial reserves have strengthened Saudi Arabia’s ability to manage economic challenges. The Fund also expects higher oil prices to support government revenues and reduce both the fiscal deficit and current deficits in 2026.
Maintaining the Flow of Exports
The report noted that Saudi Arabia was able to limit the impact of reduced shipping activity by redirecting exports through the East-West Pipeline and Red Sea ports. These measures helped maintain export flows and limit disruptions to economic activity.
The IMF added that these measures highlight Saudi Arabia’s ability to adapt while maintaining business continuity.
Banking Sector Continues to Support Financial Stability
The IMF praised the strength of the Saudi banking sector and its capacity to withstand external shocks. It also commended the proactive measures taken by the Saudi Central Bank (SAMA) to maintain liquidity and monitor credit conditions.
The report further noted that the Saudi riyal’s peg to the U.S. dollar continues to support financial stability amid global market uncertainty.
What Does This Mean for Businesses?
The IMF’s assessment reinforces confidence in the Saudi economy’s ability to support business activity through financial stability, a strong banking sector, and continued non-oil growth. These indicators suggest that the Saudi market remains well-positioned to adapt to economic shifts while offering opportunities across non-oil sectors, services, trade, and logistics.
As Saudi Arabia expands its non-oil economy, Absher Business helps companies enter and expand within the Saudi market through a structured setup process that aligns with regulatory requirements and evolving business opportunities across Saudi Arabia.
