RIYADH — Saudi Arabia’s Ministry of Finance has welcomed the International Monetary Fund’s 2026 Article IV Consultation Report, which says the Saudi economy remains resilient despite geopolitical tensions in the Middle East.
The IMF said Saudi Arabia entered 2026 with strong momentum after the economy expanded by 4.6% in 2025 on the gradual easing of OPEC+ production cuts and solid domestic demand. The report also noted that Saudi Arabia’s fiscal position is improving, with the non-oil primary deficit narrowing from 24.5% of non-oil GDP in 2024 to 23.3% in 2025.
The report assessed that Saudi Arabia’s long-term planning and strategic infrastructure investments have helped alleviate the impact of regional tensions. The report highlighted an east-west pipeline capable of transporting around 7 million barrels of crude oil per day to the port of Yanbu as a key element to maintaining export resilience.
The IMF said Saudi Arabia has sufficient fiscal space to support the economy even if regional tensions persist, citing low government debt, large fiscal reserves, large government assets and the role of the Public Investment Fund. It also noted that the Saudi central bank’s net external assets were $437 billion at the end of 2025, and assessed Saudi public debt as sustainable as overall sovereign risk remains low.
The report said the Saudi banking sector is well-positioned to withstand external shocks, supported by strong capital and liquidity buffers and continuous improvement in asset quality. The capital adequacy ratio will reach 20.5% and 18.8% in 2025, while the non-performing loan ratio has declined to 1.0% of total loans, the lowest level in the past 10 years. The IMF also praised the Saudi central bank’s efforts to protect financial stability through strengthening macroprudential policies.
The IMF said the Vision 2030 reforms have driven a decade of economic transformation through strengthening institutions, improving policy effectiveness, diversifying the economy and reducing dependence on oil. It further added that Saudi Arabia has achieved several Vision 2030 goals ahead of schedule while recording improvements in healthcare and education.
The report also highlighted Saudi Arabia’s leadership in implementing artificial intelligence in government services, healthcare, education, and financial technology. The report pointed to Saudi Arabia’s strong performance in global rankings such as the United Nations e-Government Index and the Oxford University Government AI Readiness Index, and estimated that AI could increase Saudi Arabia’s real GDP by up to 6% over the next 10 years.
The IMF concluded that Saudi Arabia continues to demonstrate economic strength and resilience in a challenging regional environment, and said sustained structural reforms, combined with prudent fiscal and monetary policies, will further strengthen the Kingdom’s global economic position and support continued economic diversification.
