World Bank sees Saudi economy growing 3.1% in 2026

The world bank downgraded its outlook for all Gulf economies.

The World Bank downwardly revised its expectations for Saudi Arabia GDP growth by 1.2% to 3.1% in 2026 amid the ongoing US-Iran conflict.

In a report, the bank said the slowdown in Saudi growth is less pronounced than in its GCC peers, reflecting steady expansion in non-oil sectors and the ability to reroute exports away from the Strait of Hormuz.

However, Saudi Arabia, Oman and the UAE could partially redirect oil output to ports located outside the GCC countries in the event of a closure of the strait, it added.

The bank also downgraded its outlook for all GCC economies, cutting its UAE growth forecast to 2.4%, while revising Qatar’s outlook to a 5.7% contraction.