Arab News | Saudi business confidence rises to 56.7 as industry, services optimism strengthens

Vijay Valecha, Wed, Sept 9, 2026 Gulf Times

RIYADH: Saudi Arabia’s Business Confidence Index rose to 56.7 in August, up from 56.5 in July, driven by continued optimism in the Kingdom’s non-oil economy, official data showed.

The index held firmly above the 50-point neutral threshold, underscoring that companies remain optimistic about economic conditions and expect continued growth across various sectors, according to the General Authority for Statistics.

The sustained momentum in the BCI comes as Saudi Arabia presses ahead with its Vision 2030 agenda, which seeks to diversify the economy and reduce reliance on crude revenues.

The reading also highlights the resilience of Saudi Arabia’s non-oil economy even as businesses in the Middle East region continue to be affected by the impacts of the US-Iran war.

The index dropped to 52.1 in March amid heightened regional geopolitical tensions before rebounding to 54.5 in April and strengthening further, reaching 56.5 in July.

In its latest report, GASTAT stated: “The index reflects prevailing optimism in the business sector, supported by establishments’ confidence in the stability of economic activity and continued growth across various sectors.”

The confidence data adds to signs of continued activity in Saudi Arabia’s non-oil economy, even as lower oil-sector output weighs on headline growth.

Saudi non-oil activities expanded 0.9 percent from a year earlier in the second quarter of 2026, while real gross domestic product contracted 4.7 percent, according to GASTAT data reported earlier this month.

Vijay Valecha, chief investment officer at Century Financial, said that the recent uptick in Saudi Arabia’s BCI amid the conflict shows the resilience of the Kingdom’s economy, which help the index recover quickly after the dip witnessed in March.

“The economy showed strong resilience after the geopolitical shock. It recovered quickly and continued to grow. This suggests that the non-oil economy is supported by real strength, not just short-term optimism,” said Valecha.

He added: “Although the rise was small, the index remained well above the 50-point level, which shows that businesses are still confident about the economy. This confidence is important because oil markets continue to face uncertainty.”

The BCI is an economic indicator that reflects the level of optimism among establishments regarding current business conditions and future expectations, based on a survey of a sample of establishments operating across non-oil economic activities classified according to the International Standard Industrial Classification of All Economic Activities, or ISIC4.

Gulf Times