Saudi Non-Oil Economy Keeps Growing in Early 2026

Saudi Arabia's private sector carried its momentum into 2026, with fresh economic indicators pointing to steady growth and rising business confidence across the Kingdom.

The Business Confidence Index stood at 60.6 in February 2026, comfortably above the 50-point line that separates expansion from contraction. Readings above that threshold signal that companies remain optimistic about activity and demand in the months ahead.

Real non-oil activity grew by 2.8% year on year in the first quarter of 2026, underlining the continued shift toward a more diversified economy. Over the first half of the year, real private consumption rose 2.7% compared with the same period a year earlier, while real private gross fixed capital formation — a measure of business investment — increased by 1.2%.

Why it matters

These figures matter to residents and businesses because non-oil growth, consumer spending, and private investment feed directly into jobs, retail activity, and opportunities in cities such as Riyadh, Jeddah, and Dammam.

Overall, real GDP declined by 0.9% year on year in the first half of 2026, mainly due to a drop of roughly 11.4% in oil activity. Away from the oil sector, however, the picture remained positive, with non-oil activity expanding by 1.8% over the same period.

Taken together, the data reflects an economy where day-to-day commercial activity continues to grow even as oil output weighs on the headline total — a trend aligned with the Kingdom's broader goals under رؤية السعودية 2030.

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