World Bank forecasts Saudi economy to grow by 4.5% in 2026

The World Bank, in its latest Economic Update report, expected Saudi Arabia's gross domestic product (GDP) to grow by 2.8% and 4.5% in 2025 and 2026, respectively.

This marks a revision from the bank’s earlier forecast, as it expected the Kingdom to post growth of 5% in 2025 and 4.8% in 2026.

In its report, the bank said the real GDP growth in the Middle East and North Africa (MENA) region is expected to accelerate slightly in 2025 and 2026, with overall GDP growth projected at 2.6% in 2025.

Furthermore, the bank projected that the GCC economies will grow by 3.2% in 2026, driven by oil-exporting developing countries (0.8%), and oil-importing developing countries (3.4%).

Economic activity in Saudi Arabia is likely to benefit from the gradual increase in oil production planned by OPEC+ between April 2025 and September 2026.

The World Bank said that diversification efforts are ongoing to support the growth of non-oil sectors in Saudi Arabia.

However, it warned that global oil price volatility, a potential slowdown in global demand, and rising uncertainty in global economic policies would pose risks that could hinder the region’s expected economic recovery.