The Saudi Ministry of Finance welcomed the Article IV consultation report for the Kingdom of Saudi Arabia for the year 2026 issued by the International Monetary Fund (IMF). The report praised the ability of the Saudi economy to withstand repercussions from geopolitical tensions in the Middle East, stressing that the Kingdom continued to demonstrate flexibility and the ability to adapt, based on solid economic foundations and diverse infrastructure.
The IMF report explained that the Saudi economy entered 2026 with strong momentum, after the Kingdom’s gross domestic product (GDP) expanded by 4.6% during 2025, driven by the unwinding of OPEC+ production cuts and strong domestic demand. The non-oil primary deficit also declined from 24.5% of non-oil GDP in 2024 to 23.3% in 2025, as this decline enhances the strength of the financial position enjoyed by the Kingdom.
Despite geopolitical tensions, the report praised the efficiency of long-term planning and advance investment in infrastructure, including the East-West pipeline, which can accommodate about seven million barrels per day of crude oil to the Yanbu port, which contributed to reducing the impact of geopolitical tensions in the region on exports and revenues. It stressed that the Kingdom has sufficient financial space to support the economy in the event of prolonged geopolitical tensions, the IMF report said, based on the decline in government debt, the ample reserves, and sizable sovereign assets, as well as the role of the Public Investment Fund. The report also noted that the net foreign assets of the Saudi Central Bank (SAMA) amounted to $437 billion by the end of 2025, while the IMF assessed public debt as sustainable and overall sovereign risks as low.
The Saudi banking sector is well-positioned to weather the current conflict, the IMF said, supported by robust capital and liquidity buffers, with continued improvement in asset quality, and noted that capital adequacy ratios reached 20.5% and 18.8% in 2025, while the percentage of non-performing loans (NPL) declined to 1.0% of total loans, which is the lowest level recorded by the Kingdom in a full decade. The IMF also praised the Saudi Central Bank’s efforts to safeguard financial stability and mitigate risks by intensifying its precautionary policies.
The IMF report noted that the reforms of Saudi Vision 2030 led a full decade of economic transformation, as the Kingdom strengthened institutional frameworks and policy efficiency, raised economic performance, reduced the Kingdom’s dependence on oil, and narrowed structural gaps with counterpart economies. In addition to improving performance indicators for health care and education, the Kingdom has achieved a number of Saudi Vision 2030 goals ahead of schedule.
The Kingdom leads the world in adopting artificial intelligence across the sectors of government services, health care, education, and financial technology, the IMF report said. This is reflected in its classification among the best performing countries in several international indicators, including the United Nations E-Government Index and the Oxford University Index of Government Readiness for Artificial Intelligence. The IMF estimates that the adoption of artificial intelligence will boost the Kingdom’s real GDP growth by up to 6% over the next decade.
The IMF report concluded that the Saudi economy is showing strength and resilience in a turbulent regional environment, and that continued structural reforms and fiscal and monetary discipline will enable the Kingdom to strengthen its global economic position and consolidate the path of economic diversification.
Source: Riyadh Daily