Saudi Arabia’s non-oil business confidence index saw a month-on-month increase of 0.3% in August 2026, reaching 56.7 points compared to 56.5 points in July, according to the General Authority for Statistics (GASTAT). The overall rise reflects sustained optimism across private sector firms regarding macroeconomic stability and continued momentum in economic expansion. Gains were primarily driven by the industrial sector, which expanded by 1.04 points to 55.8 points, and the services sector, which gained 0.9 points to reach 56.1 points due to higher capital expenditure expectations. Conversely, the construction sector experienced a minor dip of 0.4 points to 57.3 points, largely attributed to elevated input cost concerns and cautious short-term expectations. Overall, the data underscores strong corporate demand and stable internal economic conditions despite broader external cost pressures within selected domestic segments. Moving forward, market participants and analysts will closely track upcoming Purchasing Managers' Index (PMI) readings and inflation statistics to evaluate whether input price risks continue to weigh on construction activity. Steady corporate expansion in non-oil activities aligns with Vision 2030 initiatives, offering fundamental support for domestic Saudi equities.
