Riyadh: The Ministry of Finance welcomed the press release issued by the International Monetary Fund (IMF) staff following the conclusion of the 2026 Article IV Consultation, which underscored the resilience of the Saudi economy and its ability to withstand current regional developments, supported by strong economic fundamentals, ample reserves, diversified oil and logistics infrastructure, and sustained reforms under the objectives of Saudi Vision 2030.
According to Saudi Press Agency, IMF staff noted that the Saudi economy witnessed strong momentum at the beginning of 2026, after real GDP recorded growth of 4.5% in 2025, supported by the unwinding of production cuts agreed under the OPEC+ framework, continued strength in non-oil activities driven by domestic demand, sustained positive labor market indicators, and a slowdown in inflation to below 2%.
The press release explained that regional geopolitical developments and the accompanying disruptions to maritime navigation and shipping affected the economy. Nevertheless, the Saudi economy demonstrated adaptability and resilience, supported by government efforts to facilitate the rerouting of shipments and reduce logistics bottlenecks, contributing to the continued momentum of economic activity.
IMF staff emphasized that the Saudi economy benefits from solid buffers, supported by the strength of its fundamentals, including low levels of government debt, ample reserves, the strong financial position of the Public Investment Fund, and the resilience of the banking sector. These factors have enhanced the Kingdom's capacity to absorb shocks and maintain macroeconomic and financial stability.
The press release noted the government's efforts to contain the economic impact of regional developments, continue reprioritizing expenditure, and advance medium-term fiscal sustainability efforts in a manner that supports sustainable growth, strengthens the economy's resilience, and contributes to economic diversification and private sector growth.
IMF staff commended the resilience of the Kingdom's financial sector, pointing to strong capital and liquidity buffers in the banking sector and its ability to withstand shocks. They also welcomed the Saudi Central Bank's efforts in monitoring liquidity, credit conditions, and asset quality, while continuing prudential measures that safeguard banking sector stability.
The press release reviewed the reform journey launched under Saudi Vision 2030, affirming that reforms implemented over recent years have contributed to strengthening governance, improving policymaking, enhancing economic resilience, and supporting economic diversification, which has positively reflected on non-oil economic performance. IMF staff also emphasized the importance of sustaining reform momentum to support economic diversification, strengthen the role of the private sector, and ensure strong medium-term growth prospects.
IMF staff welcomed the updated strategy of the Public Investment Fund for 2026-2030, which contributes to allocating capital on an efficient basis, attracting greater participation from private sector institutions, improving the business environment, deepening capital markets, and supporting small and medium-sized enterprises.
The Article IV Consultation press release presents the preliminary findings of IMF staff at the conclusion of the official consultation mission conducted under Article IV of the IMF's Articles of Agreement, and as part of discussions under programs through which IMF staff monitor economic developments.