Saudi business confidence rises to 56.7 in August

Business confidence in Saudi Arabia continued to strengthen in August 2026, with the national Business Confidence Index climbing to 56.7 points, up from 56.5 points in July. The modest gain of 0.2 points, an increase of about 0.3% month-on-month, keeps the index well above the 50-point neutral mark, showing that more firms remain optimistic than pessimistic about conditions in the non-oil economy.

The index tracks non-oil business activity and reflects company sentiment on outputs, inputs, employment, and expansion plans across Saudi establishments. August's reading points to continued optimism, supported by perceptions of stable economic activity and steady growth across a range of sectors.

Sector performance

Construction led sectoral optimism at around 57.3 points, though it eased slightly by about 0.4 points from July as cost pressures weighed on sentiment. The services sector rose to roughly 56.1 points, showing continued improvement, while industry advanced to about 55.8 points from 54.7 points in July.

The recovery has been steady through the year. After slipping to about 52.1 points in March amid regional tensions, the overall index rebounded to around 54.5 points in April and has climbed since to its August level.

In parallel, non-oil private sector activity expanded in August, with the Purchasing Managers' Index at around 53.8, up from 53.1 in July — the fastest pace of growth in six months. Remaining above 50, the reading confirms expansion in output and new orders, supported by domestic demand, tourism activity, and ongoing projects.

Business expectations for the year ahead also improved to a multi-month high, with a noticeably larger share of firms anticipating higher activity over the next 12 months than those expecting a slowdown. For residents and business owners across Riyadh, Jeddah and beyond, the figures suggest a resilient non-oil economy and a supportive climate for jobs and new ventures.

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