SAUDI Arabia’s gross domestic product growth is projected to pick up to 4.5 per cent in 2027, according to an industry report, says Arab News.
A Middle East economic update from the Institute of Chartered Accountants in England and Wales (ICAEW) projected a moderation in Saudi economic growth, from 4.5pc in 2025 to 4.3pc in 2026.
The non-oil sector shows robust strength, with the Purchasing Managers’ Index soaring to 60.2 in October, its second-highest level since 2014, reflecting strong gains in output, new orders, and employment.
“We expect non-oil activity to expand by 5pc in 2026, from 4.6pc this year, and accelerate to 5.3pc year-on-year in 2027,” the ICAEW added.
However, the institute noted that the fiscal deficit widened sharply to 88.5 billion riyals ($23.5bn) in the third quarter of 2025, and the full-year deficit forecast for 2025 has been raised to 5.3pc of GDP, with an expected widening to 5.6pc in 2026.
Recent reforms aimed at opening the economy include easing restrictions on foreign investment in real estate and the local equity market, and a five-year rent freeze in Riyadh aimed at curbing rental inflation, though this may deter private investment in new rental developments. Inflation is expected to remain contained at 2.2pc in 2025.
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