Saudi Arabia’s Business Confidence Index remained firmly in optimistic territory at 56.5 in July, extending its recovery from the March slowdown, official data showed TurkicWorld reports via arabnews.
The index, released by the General Authority for Statistics, eased only marginally by 0.03 points from 56.6 in June, remaining well above the neutral 50-point mark and signaling continued optimism among businesses.
After dropping to 52.1 in March, the BCI rebounded to 54.5 in April and strengthened further to 55.6 in May and 56.6 in June before holding near that level in July.
The Kingdom’s BCI maintained steady momentum despite lingering uncertainty after the US-Iran conflict disrupted supply chains and industrial activity across parts of the Middle East.
The improvement in business confidence aligns with broader indicators of private-sector activity. A report released by S&P Global earlier this month showed that the Kingdom’s Purchasing Managers’ Index stood at 53.1 in July, driven by resilient output and new orders despite persistent regional headwinds.
In its latest report, GASTAT stated: “The index reflects prevailing optimism in the business sector, supported by establishments’ confidence in the stability of economic activity and continued growth across various sectors.”
Industry and services sector
In the industrial sector, the BCI stood at an optimistic 54.7 points in July, down 0.2 points from 55 in June.
The decline was attributed to lower confidence levels among industrial establishments, particularly regarding current input costs and expectations for the coming month.
The services sector recorded 55.3 points, maintaining an optimistic level after a 0.2-point drop from 55.5 in June. The decrease was similarly linked to reduced confidence in current input costs and related expectations.
Construction sector
The construction sector posted 57.7 points, reflecting continued optimism among establishments despite a 0.1-point decline from 57.8 in June.
“This decline (in the construction sector) is attributed to a decrease in establishments’ confidence regarding input costs during the current month and their expectations regarding them for the coming month,” said GASTAT.
Earlier this month, the al rajhi capital Saudi Construction Index, compiled by S&P Global Market Intelligence, showed that Saudi Arabia’s construction sector expanded for a third consecutive month in July as new orders reached a five-month high, although the headline index eased to 55.2 from 56.3 in June.
Despite the decline, the PMI remained comfortably above the 50-point threshold separating expansion from contraction and marked the survey’s second-highest reading since it began in January.
The BCI is an economic indicator that reflects the level of optimism among establishments regarding current business conditions and future expectations, based on a survey of businesses operating across non-oil economic activities classified according to the International Standard Industrial Classification of All Economic Activities or ISIC4.
Reinforcing the strength of the Kingdom’s non-oil economy, a report released by GASTAT in July showed that Saudi Arabia’s non-oil activities expanded by 0.6 percent year on year in the second quarter of 2026, even as the Kingdom’s real gross domestic product declined by 4.8 percent.
