RIYADH: Saudi Arabia’s Business Confidence Index remained in optimistic territory at 52.1 points in March, underscoring private sector resilience amid ongoing regional instability.
The index fell from 60.7 in February but stayed above the neutral 50 threshold, reflecting continued confidence in stable economic activity and sustained growth across key sectors despite the conflict, according to the General Authority for Statistics.
The BCI is an economic measure that captures the level of optimism among businesses regarding current conditions and future outlook, based on a survey of firms across non-oil sectors, classified under the International Standard Industrial Classification of All Economic Activities.
The BCI figure for March came as businesses dealt with the consequences of the conflict between the US, Israel and Iran, which disrupted energy markets, trade routes, and supply chains across the Middle East.
A GASTAT release said: “In March 2026, the BCI for the industrial sector recorded 50.8 points, maintaining an optimistic level despite a decline of 15.8 percent compared to February 2026, when it stood at 60.4 points. This decrease is attributed to a decline in confidence levels related to sales for the current month and expected input costs for the coming month.”
It added: “In March 2026, the BCI for the services sector recorded 52.0 points, maintaining an optimistic level despite a decline of 14.9 percent compared to February 2026, when it stood at 61.1 points. This decrease is attributed to a decline in confidence levels related to purchasing orders for the current month and expected input costs for the coming month,” it added.
Regarding the BCI in the construction sector, the data revealed that in March, it recorded an optimistic level at 53 points, confirming the continued positive confidence among establishments in the sector.
This came despite a 12.6 percent decline compared to the previous month, when the index recorded 60.6 points. The drop is mainly linked to purchasing orders for the current month and expected input costs for the coming month.
The world is confronting one of its most serious geopolitical crises in recent years after war erupted on Feb. 28 between the US and Israel and Iran, triggering retaliatory attacks by Tehran across Saudi Arabia and other Gulf Cooperation Council countries.
The Saudi economy demonstrated resilience in absorbing these shocks and an ability to adapt to changes.
Economist Mohammed Makni confirmed to Al-Eqtisadiah earlier this week that the Kingdom enjoys stable and ideal inflation levels, ranging between 1.8 percent and 2.2 percent during 2025 and continuing at the same level into 2026.
This stability is attributed to the structural reforms implemented in recent years, indicating that inflation will remain moderate in the short term unless the war in the region is prolonged.
