Standard Chartered forecasts Saudi GDP growth at 4.5% in 2026

Standard Chartered expects Saudi Arabia’s economy to outperform global growth in 2026

Saudi Arabia is estimated to maintain strong economic growth, with real gross domestic product (GDP) projected to expand by 4.5% in 2026, outpacing the global growth average of 3.4%, Standard Chartered said in a report.

The non-oil sector is expected to grow at a steady pace of 4.5%, driven by investment and consumption, while maintaining its role as a key economic pillar.

The strength of the Saudi economy is backed by sustained momentum in the oil sector, which regained growth following OPEC+ easing of production cuts that had been in place since 2023, according to Standard Chartered’s “Global Outlook 2026”.

Saudi Arabia’s public debt-to-GDP will likely rise to 36% by the year-end, compared with 26% at the end of 2024, said the British bank, noting that the recent fiscal deficit has not been an impediment but rather a catalyst for macroeconomic structural transformation.

To further support the economy, Standard Chartered expects policymakers in 2026 to continue efforts to diversify funding sources, while seeking to attract more foreign direct investments (FDIs), alongside enhancing foreign investor participation in local debt markets.

Increased capital inflows are likely to boost Saudi Arabia’s financial markets, particularly as the Kingdom is being included in more major global investment indices.

Separately, Mazen Al-Bunyan, CEO of Standard Chartered Saudi Arabia, said that despite the positive outlook for the Kingdom’s economic growth in 2026, it is accompanied by elevated risks that could negatively affect oil prices—a sector expected to see a recovery in the coming year. The continued growth of the non-oil sector will ensure sustainable financial stability and growth diversification in the Kingdom, he added.