Strong domestic demand continued to underpin Saudi Arabia's non-oil economy and corporate earnings through 2026, helping companies weather higher shipping and logistics costs that pressured exporters during the period.
The economy expanded 3.0% year on year in the first quarter of 2026, with non-oil activities growing 2.9%. For the full year, real GDP growth was projected at 4.6%, and non-oil activities were expected to grow 5.0% — signs that consumer and business spending inside the Kingdom remained a key engine of activity.
Shipping costs weigh on exporters
Global shipping disruptions pushed up logistics and distribution costs for Saudi exporters during the reported period. Among the companies affected, SABIC saw its distribution costs rise by nearly SAR 1 billion as it absorbed the higher expense of moving goods to international markets.
To ease the pressure, Saudi authorities facilitated the rerouting of shipments and worked to reduce logistics bottlenecks, helping keep supply chains moving despite the disruption.
For residents and businesses in Riyadh, Jeddah and beyond, the picture points to a resilient domestic market. Robust local demand supports jobs, retail and services even when external trade conditions turn difficult — a balance that continues to shape everyday economic life across the Kingdom.
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