Saudi private sector growth accelerates despite regional tensions, economic council says
RIYADH — Saudi Arabia’s private sector maintained its growth momentum in August despite escalating regional tensions and mounting global inflationary pressures, according to an economic report reviewed by the Council of Economic and Development Affairs (CEDA) during a virtual meeting.The Ministry of Economy and Planning’s monthly report showed that the Kingdom’s Purchasing Managers’ Index (PMI) rose to 53.8 in August 2026 from 53.1 in July, marking the fifth consecutive month of growth.The Business Confidence Index also increased to 56.7, up 0.2 points from the previous month, reflecting continued confidence in the outlook for the Saudi economy.The report examined developments in the global economy amid rapidly changing geopolitical conditions, including rising inflationary pressures and tighter monetary policies adopted by major central banks, Saudi Press Agency reported on Thursday.It also assessed the implications for Saudi Arabia, highlighting the national economy’s resilience and ability to navigate regional and international challenges while identifying opportunities arising from the changing economic environment.The council reviewed a separate report from its Strategic Management Office on the performance of Saudi Vision 2030 programs and national strategies during the second quarter of 2026.The report highlighted the transformation achieved over the past decade and outlined the next phase of Vision 2030, focused on maximizing impact, consolidating gains and sustaining progress across its three pillars: a vibrant society, a thriving economy and an ambitious nation.The council also examined the Quality of Life Program Center’s 2025 annual report, which showed that the program’s initiatives contributed 44% in local content by the end of 2025, exceeding the target of 37%.The initiatives contributed SR78 billion to gross domestic product, surpassing the target of SR77.1 billion.In addition, the council reviewed the 2025 annual report of the Citizen Account Program, which showed that cumulative financial support provided since the program’s launch had reached approximately SR262 billion.The program reported approximately 2.4 million beneficiaries, reflecting its role in supporting eligible households and strengthening the Kingdom’s social protection system.The council also discussed a second-quarter report from the National Center for Performance Measurement (Adaa), covering government agencies’ performance and progress toward Vision 2030 targets.The report outlined efforts to improve government performance through strategic reviews, performance monitoring, addressing implementation challenges and identifying opportunities for improvement.Other matters reviewed included the Justice Sector Development Strategy and the draft Clinical Studies Law.The council was also briefed on monthly summaries of consumer and wholesale price indices, foreign trade developments and a quarterly report from the Permanent Committee for Price Monitoring.