Overview:
Saudi Arabia's private sector excluding oil demonstrated resilience in July, with the Purchasing Managers Index reaching 53.1 points for the fourth consecutive month of growth. Concurrently, crude oil prices stabilized around 79-80 dollars per barrel following a five-percent decline, as investors awaited developments regarding efforts to resolve Middle East conflicts. Major corporate earnings showed broad strength across Saudi financial and energy sectors.
Details:
Global oil markets experienced significant volatility this week. Crude prices fell more than five percent to their lowest levels in three weeks before stabilizing, driven by investor uncertainty over shipping security in the Strait of Hormuz and progress in regional peace negotiations. Brent crude futures declined 4.41 dollars per barrel in settlement trading. Despite current stability, global supplies face ongoing pressure, with estimates indicating losses exceeding 100 million barrels weekly due to the Hormuz crisis.
Saudi Arabia's corporate sector demonstrated broad profitability gains. Saudi Aramco reported adjusted net income of 125.2 billion riyals for the second quarter of 2026, reflecting a 42 percent year-over-year increase, while maintaining supply commitments amid shipping challenges. Saudi Energy Company achieved 6.7 billion riyals in net profit for the first half of 2026, representing a 7.5 percent increase. Mid-Gulf Insurance achieved profitability at 44.16 million riyals in Q2 2026 after prior-period losses. Chemical Industries Basic Company surged 387.5 percent to 17.6 million riyals, and Burgerizer posted a 369 percent profit jump to 5.5 million riyals.
The Saudi stock index rose for three consecutive sessions, gaining 34.52 points to 10,858.14, with 189 companies posting gains. Consumer spending increased six percent to 130.14 billion riyals in June 2026. Point-of-sale transactions totaled 267 million operations worth 16.3 billion riyals during late July-early August.
Outlook:
Investors are monitoring developments in Hormuz shipping security and regional conflict resolution, as these factors directly influence crude prices and global supply stability. Domestic economic momentum hinges on sustained private-sector expansion and corporate earnings growth through 2026.