Saudi Non-Oil Economy Boosts Business Confidence to Its Highest June Reading
RIYADH — Saudi Arabia’s Business Confidence Index rose to 56.6 in June, up from 55.6 in May, marking a third consecutive monthly gain as optimism strengthened across the non-oil economy.
The June reading, released by the General Authority for Statistics, remained well above the neutral 50-point mark, indicating continued business optimism following a sharp dip to 52.1 in March. The index recovered to 54.5 in April before climbing further in May and June.
The improvement comes despite lingering uncertainty after the US-Iran conflict disrupted supply chains and industrial activity in parts of the Middle East. It aligns with broader indicators of private-sector activity, including the Kingdom’s Purchasing Managers’ Index, which rose to 53.3 in June from 52.8 in May, driven by stronger domestic demand and new orders.
“The increase reflects prevailing optimism in the business sector, supported by establishments’ confidence in the stability of economic activity and continued growth across various sectors,” said GASTAT.
Sector Breakdown
The industry sector recorded an optimistic level of 55 points, up 0.7 points from May, reflecting stronger confidence in overall performance, sales, and purchase orders. The services sector rose to 55.5 points from 54.6, with establishments expressing heightened optimism about performance, sales, and employment.
Construction recorded the highest reading among the three sectors at 57.8 points, up from 56.7 in May, supported by positive expectations for overall performance, sales, and purchase orders.
The Business Confidence Index measures business sentiment based on a survey of establishments operating across non-oil sectors. The data comes as the Kingdom’s gross domestic product expanded 3 percent year on year in the first quarter of 2026, with both oil and non-oil activities growing 2.9 percent annually and government activities rising 1.5 percent.
Also Read:
Rahm Emanuel Delivers Blistering Speech on Israel’s International Standing
Kuwait and Bahrain Strengthen Security Following New Regional Attacks
