Saudi Business Activity Set for Stronger Momentum in Q3 2026

Standard Chartered global research today published its latest economic analysis, forecasting stronger momentum in Saudi Arabia’s business activity during the third quarter of 2026, supported by resilient domestic demand, improving regional trade conditions and the Kingdom’s ongoing economic diversification.

Saudi Arabia entered the second half of the year with resilient underlying economic activity despite heightened regional uncertainty. This is evident in point-of-sale transactions, which increased 6% year on year in May, returning to January 2026 levels. Global Research analysis identifies resilient consumer demand as a key driver of business activity, with improving external demand expected to provide additional support as regional trade conditions continue to improve.

Mazen Bunyan, Chief Executive Officer and Head of Coverage, Saudi Arabia, Standard Chartered, said: “Saudi Arabia’s economy has continued to demonstrate resilience through a period of heightened regional uncertainty, reflecting the strength of domestic demand and the progress of the Kingdom’s diversification agenda. As regional conditions continue to improve, we expect this resilience to translate into stronger business momentum, creating further opportunities for investment and private sector growth during the second half of the year.”

Standard Chartered expects the economy to gain momentum during the third quarter of the year, supported by three key drivers: continued investment as an engine of economic activity, easing inflationary pressures that should support household purchasing power and business confidence, and an improving labour market that is expected to reinforce domestic demand.

Regional trade dynamics are also improving. The partial reopening of the Strait of Hormuz has supported a near full recovery in Saudi Arabia’s oil exports. This is expected to provide additional support for Saudi Arabia’s trade and broader economic activity during the second half of the year.

The combination of resilient domestic demand, continued investment and improving regional conditions is expected to support stronger business momentum through the third quarter, reinforcing Saudi Arabia’s progress in economic diversification and its position as a leading growth market.