MEcon | August 2026 Edition

Saudi Arabia 

Saudi Arabia’s latest indicators point to continued resilience in domestic activity, with inflation contained and non-oil business conditions remaining in expansion despite softer momentum. External-facing sectors were weaker, as exports and the trade surplus eased, but diversification continued to advance through stronger investment activity and progress across privatization, mining, energy storage, and strategic partnerships. Financing conditions are also becoming more selective as banks prioritize profitability over faster loan growth.

UAE

The UAE economy remained on a solid growth path in Q1 2026, with non-oil activity increasing its share of GDP and financial services leading expansion. Business conditions strengthened in July as new orders, exports and hiring improved, although inflation and input costs remained elevated and the fiscal operating balance narrowed as spending increased. Confidence nevertheless stayed relatively firm, supported by continued momentum in FDI, real estate and tourism, alongside further investment in healthcare, liveability and urban development.

Qatar

Qatar’s latest indicators point to a mixed picture, with inflation moderate and non-energy private sector conditions still soft but showing signs of improvement. Visitor arrivals remained below year-earlier levels, although the pace of decline eased following the onset of regional conflict earlier in the year. The sharp fall in LNG exports continued to weigh on revenues and spending, but domestic liquidity support, rising FDI, and new industrial projects are helping sustain diversification momentum.

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