Overview:

Gulf Cooperation Council economies are demonstrating accelerating growth beyond petroleum. The non-oil sector contributed 1.9 trillion dollars to regional output in 2025, representing 79 percent of total GDP at current prices, according to statistics released by the GCC Statistical Centre. This expansion reflects strengthening performance across finance, real estate, technology, and logistics segments throughout the Arabian Peninsula.

Details:

Saudi Arabia recorded substantial capital market activity in the second quarter of 2026, with foreign investors channeling 1.6 billion dollars into equities — the highest net purchases across GCC bourses during the period. Banking sector earnings expanded uniformly: the Saudi-French Bank reported net profit of 1.48 billion riyals for the second quarter, up 6 percent annually; the Al-Ahli Bank earned 1.42 billion riyals, rising 6.5 percent; and Bank Al-Bilad achieved 791.6 million riyals, climbing 3.3 percent year-over-year.

Real estate indices climbed 1.3 percent during the second quarter compared to the prior-year period, while the operational revenue index rose 11.4 percent in May. The General Authority for Real Estate recorded over 13 million sales and rental transactions worth 1.6 trillion riyals through the end of 2025. Commercial licensing expanded, with municipal authorities issuing and renewing more than 274,000 business licenses in the first half of 2026, reflecting sustained economic momentum.

Infrastructure developments supported logistics competitiveness: Jeddah Islamic Port extended exemption periods for storage fees on transit cargo to 60 days beginning July 19, 2026. Direct air cargo services launched between Saudi Arabia and Australia. Additionally, biotechnology investments in the Gulf are forecast to reach 10.75 billion dollars by 2030, demonstrating confidence in emerging sectors.

Outlook:

Investors remain attentive to sustained non-oil diversification trajectories and foreign capital flows into regional equity markets. Policy initiatives targeting logistics efficiency and emerging technology investment are expected to bolster competitive positioning in global supply chains.