Saudi Arabia’s Business Confidence Index (BCI) increased to 54.5 points in April, marking a recovery from the previous month’s dip to 52.1 points, according to data released by the General Authority for Statistics (GASTAT). The rise suggests renewed optimism in the Kingdom’s non-oil sectors amid ongoing efforts to diversify the economy away from crude oil dependence.

The BCI had stood at 61.6 in January and 60.7 in February but declined in March, largely attributed to regional instability stemming from the conflict involving Iran. April’s rebound reflects resilience within the non-oil economy, with readings above 50 considered indicative of positive sentiment about current conditions and future business expectations.

Sector-specific data showed the construction industry leading the recovery, with its confidence index climbing to 55.7 points from 53 in March. This improvement was driven by increased optimism regarding overall performance, sales, and purchase orders among construction establishments. The services sector also registered growth in confidence, rising to 53.9 points from 52, fueled by positive outlooks on performance and sales. Meanwhile, the industrial sector recorded a modest increase to 53.5 points, up 2.7 points month-on-month, supported by expectations of higher output and demand.

GASTAT noted that the BCI survey encompasses a broad range of non-oil economic activities classified under the International Standard Industrial Classification, providing a comprehensive gauge of business sentiment across the Kingdom’s diversified sectors.

Complementing the confidence data, Saudi Arabia’s real gross domestic product expanded 2.8 percent year-on-year in the first quarter of 2026, largely driven by growth in non-oil industries. For the full year of 2025, the overall economy grew 4.5 percent, while non-oil sector growth outpaced this at 4.9 percent.

Trade figures showed shipments, including re-exports, surged 17.5 percent during January and February, reaching 63.3 billion Saudi riyals (SR). The merchandise trade balance remained in surplus at SR36.9 billion over the same period. Industrial production exhibited a robust increase of 9.8 percent year-on-year in early 2026, reflecting the expanding role of manufacturing.

Other indicators also point to sustained development, with the Purchasing Managers’ Index averaging 53.7 points in the first quarter, comfortably above the 50-point threshold signaling sector expansion. Government spending on health and social development rose 13 percent to SR81 billion compared to the previous year, underscoring commitments to citizen welfare. Meanwhile, infrastructure and transportation investments increased by 26 percent to SR12 billion, aligning with the Kingdom’s strategic objective of enhancing its position as a global logistics hub.

Overall, the latest data underscore a positive trajectory in Saudi Arabia’s economic diversification and non-oil sector growth, despite external geopolitical challenges impacting the region.