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Macro - Country Economic Forecasts - Saudi Arabia

Publisher Oxford Economics
Published Mar 24, 2026
Length 7 Pages
SKU # OFE21076957

Description

The escalation of geopolitical tensions following the joint US-Israel strikes on Iran has led to a more prolonged disruption across the Gulf than previously assumed. We now expect the conflict to last around two months, compared with our earlier assumption of a two-week disruption. While Saudi Arabia remains insulated from direct damage, the longer duration of the conflict is tightening regional trade conditions and weighing on sentiment. External sectors, particularly tourism and logistics, are likely to soften, although domestic fundamentals remain intact.

Table of Contents

7 Pages
Saudi Arabia: Prolonged conflict weighs on the GDP growth outlook
Forecast overview
Recent developments
Short
term outlook
Key drivers of our short
term forecast
Economic risk
Economic risk evaluation
What to watch out for
Exposure to key global risks
Background
Economic development
Structure of the economy
Politics
Economic policy

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