Prime Highlight:
- Saudi Arabia’s Business Confidence Index climbed to 62 points in December, reflecting strong optimism across the non-oil economy.
- The rise signals continued confidence in economic stability and growth, with industry, services, and construction all reporting improvements.
Key Facts:
- The industry sector led gains with its index rising 2.7% to 62.2 points, while services and construction also posted monthly increases.
- The index remains well above the neutral 50 level, and economists expect Saudi GDP to grow 4.5% in 2026, supported by non-oil sector momentum.
Background:
Saudi Arabia’s Business Confidence Index increased by 2.2% to 62 points in December, showing strong optimism among companies across the non-oil economy, according to data released by the General Authority for Statistics.
The reading stayed well above the neutral 50-point mark, confirming continued expansion in business sentiment. The rise reflects growing confidence in economic stability and steady growth across several sectors, GASTAT said.
The industry sector led the gains. Its BCI reached 62.2 points in December, up 2.7% from November. Officials said higher expectations for overall performance, sales, and purchase orders supported the rise.
The services sector also showed improvement. Its index climbed 2.3% month on month to 62 points. The growth came from better outlooks for sales, business activity, and hiring, suggesting that companies expect demand to stay firm in the coming months.
Construction firms reported a similar trend. The sector’s index rose 1.8% to 61.8 points. GASTAT said stronger confidence in overall performance, sales, and fixed investment spending helped lift the reading.
The Business Confidence Index is based on a monthly survey of companies operating in non-oil activities. It tracks current conditions and future expectations on a scale of zero to 100, and values above 50 show optimism.
The upbeat data adds to recent signs of strength in the Kingdom’s economy. Earlier this month, Riyad Bank’s Purchasing Managers’ Index stood at 57.4 in December, pointing to solid growth in business activity, new orders, and employment.
Looking ahead, international lenders remain positive. Standard Chartered said in a January report that Saudi Arabia’s gross domestic product could expand by 4.5% in 2026, supported by momentum in both oil and non-oil sectors.
The bank also expects the non-oil economy to grow at the same pace, driven by investment and consumer spending, underlining the progress of Vision 2030 reforms.
