SAUDI ARABIA ECONOMIC BRIEF
Overview:
Saudi Arabia's economy continues diversifying and growing across energy, agriculture, tourism, and telecommunications. The kingdom processed 226.156 million digital payment transactions valued at 12.263 billion riyals during July 19-25, 2026. Oil prices fell below 87 dollars per barrel amid US-Iran diplomatic efforts. Major companies posted mixed second-quarter earnings, while strategic initiatives in nuclear energy, water desalination, and sustainable development gained momentum.
Details:
Point-of-sale transaction volumes reflect robust domestic spending and financial system penetration. The weekly figure represents steady digital payment adoption across the retail and services sector. Concurrently, the Saudi Arabian Monetary Authority continues monitoring market stability amid global commodity price volatility.
Oil prices retreated over 8 percent during the reporting period, falling to 89.24 dollars per barrel after the United States suspended military operations against Iran to support diplomatic negotiations. Brent crude futures declined 1.47 dollars per barrel to 87 dollars, marking the lowest level since July 20. This contraction reflected easing Middle East tensions rather than demand destruction.
Corporate earnings delivered divergent results. Zain Saudi Arabia reported first-half revenues of 5.3 billion riyals with 8 percent profit growth, reaching 402 million riyals net income. Petro Rabigh returned to profitability at 2.66 billion riyals in Q2 after prior-year losses. Arabian Cement earnings rose 48.3 percent to 30.4 million riyals. However, Saudi Dairy and Food Company profits fell 25 percent to 88.2 million riyals.
Strategic investment continued. Ardara Development and Sumo Holding launched a 4-billion-riyal valley development project under Prince Turki bin Talal bin Abdulaziz's patronage. The Saudi General Real Estate Authority licensed five real estate companies with combined capital exceeding 346 million riyals. Saudi Arabia's voluntary carbon market platform expanded sustainability infrastructure.
The kingdom issued 34,000 building permits in the first half of 2026, advancing housing and infrastructure targets. Amalah resort destination opened first-phase operations with Four Seasons and Six Senses properties. Saudi tourism reached 3 million foreign visitors in 2025, per OECD data.
Outlook:
Investors await Saudi Aramco's second-quarter earnings announcement on August 4, which will signal oil sector profitability trends. Global oil market recovery depends on sustained diplomatic stability and renewed demand signals from major Asian economies amid yen weakness affecting Japanese equity indices.