Saudi Arabia economy shows resilience with rising PMI and growth projections

Economic indicators for Saudi Arabia suggest a period of transition and growth. A Bloomberg survey of 15 international analysts indicates that the Saudi economy may avoid contraction this year, with an average projected GDP growth rate of 0.6%. Projections for 2027 are significantly more optimistic, with an expected average growth of 6.1%.

Complementary data from Al Rajhi Capital shows the Saudi Purchasing Managers Index (PMI) rose to 53.8 points in August, signaling continued expansion in the private sector. This growth is supported by a strong construction sector, which reached 55.4 points, and a non-oil GDP growth of 0.9% in the second quarter of 2026.

While crude oil production saw a slight decrease to 7.1 million barrels per day in August, analysts note the resilience of the oil sector. Additionally, unemployment rates among Saudi citizens have declined, falling from 7.2% in the fourth quarter of 2025 to 6.4% in the first quarter of 2026.