Saudi Arabia's Path Forward Amid Lower Oil Prices
you are currently viewing::Saudi Arabia's Path Forward Amid Lower Oil PricesDecember 18, 2025-Next year will be pivotal for Saudi Arabia. The country is well placed to move beyond the favorable tailwinds of 2022-2024-when high oil prices and reform implementation facilitated the acceleration of Saudi Vision 2030-related spending-into a more challenging environment characterized by lower oil prices and rising financing needs. At the same time, Saudi Arabia is strategically shifting some of its spending priorities, with some of its investment focus moving toward AI and advanced technologies as part of its broader effort to diversify the economy. The resilience shown in 2025 underscores the progress already achieved in reducing the economy's exposure to oil fluctuations. Despite oil prices falling nearly 30 percent below their 2022 peak, the non-oil economy maintained strong momentum. Source: imf.org |
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East Asia and Pacific (EAP) is projected to grow at 4.5% in 2026, demonstrating resilience in the face of global headwinds.
October 5, 2026-The kingdom's headline PMI rose to 55.3 in September, the strongest rate of improvement in 7 months
September 28, 2026-- Domestic pivot' of up to $100bn
US would be hardest hit by withdrawal
SWFs face pressure to invest at home
September 24, 2026--Saudi Arabia's benchmark index eased 0.1%
Major Gulf equity markets fell in early trade on Thursday as little progress in US-Iran diplomacy and persistent risks to Strait of Hormuz shipping unsettled investors.