Saudi Arabia’s economy is expected to remain resilient, underpinned by strong oil-sector infrastructure and continued economic diversification, stated Al Rajhi Capital, a leading financial services provider in Saudi Arabia, in its review.
Revenues are projected to rise 1% in 2027 to SAR1.2 trillion ($314 billion), compared with the 2026 estimate, while government spending is expected to fall 3% to SAR1.4 trillion ($367 billion).
The fiscal deficit is consequently projected to narrow to SAR191 billion, equivalent to 3.6% of GDP, from 4.9% in 2026, it added.
Last month in its Saudi Construction Index, Al Rajhi Capital said the kingdom's construction activity expanded for the fourth straight month in August, driven by resilient demand conditions and a sustained recovery in new orders.
The seasonally adjusted Alrajhi capital Saudi Construction Index, which was compiled by S&P Global Market Intelligence, climbed to 55.4 in August from 55.2 in July.
The index remained comfortably above the 50-point threshold separating expansion from contraction, marking its second-highest reading since the survey began in January.
In August, a report released by the General Authority for Statistics revealed that the kingdom’s Business Confidence Index eased marginally to 56.5 in July from 56.6 in June, while the construction industry recorded a reading of 57.7, compared with 54.7 for industry and 55.3 for services.-TradeArabia News Service
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