The latest economic analysis from Standard Chartered’s global research division indicates an acceleration in business activity, with the strength of consumer spending and continued investment expected to support this shift in the third quarter
Riyadh, Saudi Arabia: Standard Chartered’s Global Research division today announced its latest economic analysis, expecting business activity in Saudi Arabia to gain stronger momentum during the third quarter of 2026, supported by strong domestic demand, improved regional trade conditions, and continued progress in the Kingdom’s economic diversification.
Analyses indicate that the kingdom entered the second half of the year with strong economic momentum, despite the escalation of regional tensions. This is evident in the strength of consumer spending, with the value of point-of-sale transactions increasing by 6% year-on-year in May, returning to January 2026 levels. The Bank’s analysis of the Bank’s Global Research division also indicates that strong consumer demand is one of the key drivers of business activity, and the gradual improvement in external demand is expected to provide additional support as regional trade conditions continue to improve.
Mazen Al-Benyan, Chief Executive Officer and Head of Banking & Coverage at Standard Chartered Saudi Arabia, said: ”The Saudi economy continues to demonstrate resilience during a period of heightened regional tensions, reflecting strong domestic demand and continued progress in implementing the Kingdom’s economic diversification goals. As the regional situation continues to improve, we expect this resilience to translate into stronger momentum in business activity, creating additional opportunities for investment and private sector growth in the second half of the year.”
Standard Chartered’s global research division expects the Saudi economy to gain more momentum during the third quarter, supported by three main factors: continued investment as a driver of economic activity, easing inflationary pressures to support household purchasing power and business confidence, and improved labor market conditions, boosting domestic demand.
Regional trade dynamics are also gradually improving. The partial reopening of the Strait of Hormuz has contributed to the return of Saudi oil exports to near-normal levels, which is expected to provide additional support to trade and economic activity in the Kingdom during the second half of the year.
Standard Chartered’s global research division believes that strong domestic demand, continued investment, and improved regional conditions will support stronger business activity in the third quarter, further cementing the Kingdom’s progress in economic diversification and consolidating its position as one of the region’s leading growth markets.
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