Overview:

Saudi banks delivered robust first-half 2026 results with net income gains ranging from 4 to 14 percent, while the kingdom's broader economic agenda advanced on multiple fronts. Oil prices held above USD 91 per barrel amid geopolitical concerns, gold surged past USD 4,000 per ounce, and regional real estate activities led Gulf growth at 9.7 percent. Government initiatives expanded small and medium enterprise lending and streamlined business licensing procedures.

Details:

First National Bank of Saudi Arabia reported net income of SAR 4.4 billion in the first half of 2026, a 4 percent increase compared to the prior-year period. Al-Rajhi Banking and Investment Corporation achieved net profits of SAR 13.764 billion, reflecting 14 percent annual growth and demonstrating the strength of integrated banking strategies in the kingdom. Saudi French Bank reported a 6 percent profit increase to SAR 1.48 billion. These results underscore resilience in the Saudi financial system amid evolving regional and international economic conditions.

Saudi Arabia advanced 31 economic cooperation initiatives through the bilateral Trade and Investment Council with the United States, focusing on post-World Cup 2026 and World Cup 2034 economic partnerships. Meanwhile, small and medium enterprise lending from banks and financial institutions reached SAR 489.2 billion, marking a 28 percent increase and signaling strengthened access to capital for smaller businesses. The Zakat, Tax and Customs Authority set a July 31 deadline for value-added tax filings, while the Ministry of Commerce enabled electronic licensing for the 2026 discount season through August.

Oil prices climbed above USD 91 per barrel following warnings from the International Energy Agency regarding potential Hormuz Strait disruptions. Gold prices reached USD 4,023.56 per ounce as investors adjusted positions amid dollar strength. The Saudi stock market index declined 43.18 points to 10,698.81, with trading volume reaching SAR 4.4 billion.

Outlook:

Investors remain focused on inflation trajectories and Federal Reserve policy signals amid dollar strength and elevated bond yields. Regional real estate growth and expanding non-oil sectors—now representing 79 percent of Gulf GDP—are attracting heightened institutional capital allocation heading into late 2026.