Saudi Arabia’s business sector maintained a positive outlook in September, with the Kingdom’s Business Confidence Index (BCI) standing at 56.6 points despite a marginal decline from the previous month.
Business Optimism Remains Strong
According to the latest report by the General Authority for Statistics (GASTAT), the index edged down by 0.1 points from August’s 56.7, remaining comfortably above the neutral 50-point threshold.
The reading shows that businesses continued to express optimism about prevailing economic conditions, reflecting sustained confidence in the Kingdom’s economic activity.
The steady recovery in business confidence throughout 2026 highlights the remarkable resilience of Saudi Arabia’s economic landscape.
After dipping to 52.1 points in March, the Business Confidence Index (BCI) climbed to 54.5 in April and continued its upward trajectory, reaching 55.6 in May and 56.6 in June.
What Sustains Saudi Business Optimism?
Despite the fact that the index edged down slightly in July, it regained momentum in August, rising to 56.7 and maintaining a level of optimism that carried into September.
This sustained confidence is particularly notable amid regional uncertainty following the US-Iran conflict, which has disrupted supply chains and industrial activity across parts of the Middle East.
Despite these pressures, Saudi Arabia’s business confidence has remained firmly positive, reflecting continued optimism among establishments operating across the Kingdom.
The encouraging outlook is also reflected in broader private-sector activity. The Riyad Bank Purchasing Managers’ Index (PMI), compiled by S&P Global, increased to 55.3 in September from 53.8 in August, marking the strongest improvement in non-oil private-sector business conditions since February.
Future Demand Drives Business Confidence
GASTAT attributed the sustained optimism to businesses’ confidence in the stability of economic activity and continued growth across various sectors, mirroring the positive outlook driving the Kingdom’s business environment.
Thomas Kuruvilla, managing partner of Arthur D. Little Middle East and India, noted that business confidence was increasingly fueled by visibility into future demand rather than short-term economic cycles alone.
This growing visibility is helping businesses look beyond immediate market conditions and assess opportunities for longer-term growth.
Kuruvilla also underscored the steady recovery in business confidence, with the index growing from 52.1 in March to 56.6 in September and remaining above 56 since June.
He attributed this resilience to the breadth of investment and sectoral development underway across the Kingdom, which has reinforced businesses’ ability to plan beyond short-term economic fluctuations.
Looking ahead, he emphasized the importance of turning this optimism into sustainable private-sector growth.
More boldly, he encouraged businesses to invest strategically in capabilities, talent and local supply chains while maintaining disciplined approaches to capital allocation and returns.
Why Is Industrial Confidence Rising?
Business confidence remained positive across Saudi Arabia’s industrial and services sectors in September, although the two recorded different trends.
The industry sector gained momentum, with its BCI rising by 0.5 points to 56.3 from 55.8 in August. According to GASTAT, the surge reflected stronger confidence in overall business performance and expected sales for the following month.
Meanwhile, the services sector maintained an optimistic outlook, with its index standing at 55.4 despite declining by 0.7 points from August’s 56.1.
GASTAT attributed the decline to lower confidence regarding current and expected input costs, even as the sector remained above the neutral threshold.
What Will Shape Construction’s Next Phase?
Saudi Arabia’s construction sector also maintained a positive outlook in September, with its Business Confidence Index standing at 57.1 points, slightly below August’s 57.3.
According to GASTAT, the marginal decline was caused by lower confidence regarding current and anticipated input costs, although the index remained comfortably above the neutral threshold.
Meanwhile, construction activity continued to expand, extending its growth streak to five consecutive months in September, according to the Al Rajhi Capital Saudi Construction Index.
The headline index eased to 54.4 from 55.4 in August, but remained in expansion territory, pointing to continued momentum across the Kingdom’s construction sector.
“Going forward, the construction sector’s outlook will increasingly be shaped by quality of execution rather than simply quantity of projects. Greater emphasis on commercial viability, disciplined project sequencing, local supply-chain development, productivity and delivery capability should help create a more sustainable construction market,” said Kuruvilla.
In this context, Kuruvilla illustrated that the current market environment offers well-capitalized and capable construction firms an opportunity to plan capacity more effectively, make targeted investments and prioritize projects with clearer delivery prospects and stronger long-term economic value.
The Business Confidence Index (BCI) measures establishments’ optimism about current business conditions and future expectations across Saudi Arabia’s non-oil economic activities, based on a survey using the International Standard Industrial Classification framework.
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