Overview:
Saudi Arabia's private sector momentum persists despite global supply chain disruptions and rising operating costs. Tourism commercial registrations accelerated sharply in the third quarter of 2026, with tourist accommodation facilities leading growth at 52 percent. Simultaneously, state budget revenues reached 259.1 billion riyals in the same period, though expenditures of 343.4 billion riyals produced a quarterly deficit of 84.3 billion riyals. Non-oil revenues climbed 20 percent year-over-year, offsetting a 23 percent decline in petroleum income.
Details:
The Riyadh Purchasing Managers Index fell to 54 points in October from 55.3 in September but remained above the 50-point expansion threshold, indicating sustained business improvement. Production growth accelerated during the month, though new business activity and employment hiring slowed amid elevated input costs and logistical challenges. Tourism sector growth reflected recovery in travel demand, with tourist accommodation registrations climbing 52 percent, followed by tourism facility rentals at 37 percent, tour guide activities at 33 percent, and tour operator registrations at 32 percent year-over-year.
Budget data showed cumulative revenues through the third quarter reached 858.9 billion riyals against total expenditures of 1.103 trillion riyals, producing a year-to-date deficit of 244.3 billion riyals. Non-oil revenues expanded to 142.6 billion riyals in the quarter, rising from 119.1 billion riyals in the prior-year period. Oil revenues declined to 116.5 billion riyals from 150.8 billion riyals in the same quarter of 2025.
Outlook:
Investors monitor whether private sector growth can sustain momentum as global energy markets remain volatile and shipping routes face disruption. Tourism recovery trajectories will signal whether Saudi Arabia's diversification strategy under Vision 2030 continues gaining traction in both domestic and international markets.