The International Monetary Fund praised the strength of the Saudi economy, confirming that Saudi Arabia’s female labor force participation rate had risen to 35%, that Saudi public debt was assessed as sustainable while sovereign risk remained low, and that bank non-performing loans had fallen to 1%, the lowest in a decade.
At the end of the Article IV talks with Saudi Arabia, the Fund explained that the Saudi economy started 2026 with strong momentum, with gross domestic product registering a growth of 4.6% in 2025, non-oil domestic production growing by 4.2%, inflation remaining at around 2%, unemployment among the Saudi population continuing to decline, and the strength of the banking sector as well as the Saudi Central Bank maintaining ample foreign exchange reserves.
He noted that thanks to the strength of economic fundamentals and the diversity of oil and logistics infrastructure, the Saudi economy has proven its ability to withstand geopolitical tensions and maritime traffic disruptions, while the rerouting of oil through the East-West pipeline has helped reduce the impact of maritime disruptions.
The fund expected the Saudi economy to grow by 5.5% in 2027, supported by continued domestic demand, strong government spending, and progress in implementing capital projects and structural reforms under Saudi Vision 2030.
He also pointed out that the Saudi central bank’s net external assets will reach $437 billion by the end of 2025, the banking sector’s capital adequacy ratio will reach 20.5%, and the central bank continues to implement precautionary policies.
The Fund commended the achievements made by Saudi Vision 2030 in its 10 years of reforms, strengthening the non-oil economy, the role of the private sector, and economic diversification, and welcomed the new direction of the Public Investment Fund’s strategy towards strengthening the role of the private sector and supporting productivity, highlighting that small and medium-sized enterprises contribute approximately 23% to gross domestic product.
The International Monetary Fund praised the strength of the Saudi economy, noting that Saudi women’s labor force participation rate had risen to 35%, rating the Kingdom’s public debt as sustainable with sovereign risk remaining low, and assessing bank non-performing loans as falling to 1%, the lowest level in a decade.
At the end of the Article IV talks with Saudi Arabia, the Fund explained that 2026 started with strong momentum, as the Saudi economy recorded a GDP growth rate of 4.6% in 2025, non-oil GDP grew by 4.2%, inflation remained around 2%, unemployment among the Saudi population continued to decline, while the Saudi Central Bank maintained ample foreign exchange reserves in parallel with the strength of the banking sector.
The report noted that thanks to the strength of its economic fundamentals and the diversity of its oil and logistics infrastructure, the Saudi economy has proven its ability to withstand geopolitical tensions and transport disruptions, while the diversion of oil through the East-West pipeline has helped reduce the impact of transport disruptions.
The fund predicted that the Saudi economy would grow by 5.5% in 2027, supported by sustained domestic demand, strong government spending, and progress in implementing capital projects and structural reforms under Saudi Vision 2030.
He also pointed out that the Saudi central bank’s external net assets will reach $437 billion by the end of 2025, the banking sector’s capital adequacy ratio will reach 20.5%, and the central bank continues to implement precautionary policies.
The Fund praised the achievements of Saudi Vision 2030’s 10 years of reforms, which have strengthened the non-oil economy, the role of the private sector, and economic diversification, while affirming that small and medium-sized enterprises contribute approximately 23% of GDP, and welcomed the new direction of the Public Investment Fund’s strategy towards strengthening the role of the private sector and supporting productivity.
