Overview:

Saudi Arabia's economy displayed divergent momentum on Thursday, with strong investment activity and business expansion offset by stock market weakness and manufacturing declines. The International Monetary Fund raised its 2027 growth forecast to 5.5 percent, while new business registrations exceeded 71,000 in the second quarter of 2026. The Saudi-Canadian investment forum launched 15 memoranda of understanding, signaling deepening bilateral economic cooperation. However, the stock index declined 0.4 percent, and industrial production fell 18.7 percent year-on-year in May.

Details:

Investment Minister Fahd Al-Saif announced that Saudi Arabia has become one of the fastest-growing G20 economies, with gross domestic product rising approximately 85 percent since the implementation of Vision 2030. The bilateral Saudi-Canadian investment forum in Jeddah focused on mining, artificial intelligence, and manufacturing sectors, with senior officials from both nations participating.

The Saudi stock exchange index closed at 10,808.43 points, declining 45 points with trading volume reaching 4.1 billion riyals. Meanwhile, cement sales demonstrated sectoral strength, rising 8.9 percent year-on-year to 4.39 million tons in June. The real estate sector received a boost when the Riyadh Municipality issued a new guidelines document streamlining development procedures under Vision 2030 targets.

Oil prices gained momentum following renewed United States military strikes against Iranian targets, with Brent crude futures rising approximately one percent. Gold prices declined 0.4 percent to 4,060.46 dollars per ounce amid inflation concerns. The business confidence index reached 56.6 points in June, rising one point from the previous month, while mortgage lending climbed 6 percent to 967.9 billion riyals in the first quarter.

Outlook:

Investors are monitoring escalating geopolitical tensions in the Middle East and their impact on energy supply chains and maritime insurance costs. The contrast between strong investment activity and industrial contraction suggests the economy is transitioning toward service and development sectors, warranting close attention to manufacturing capacity utilization in coming quarters.