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IMF Projects Saudi Arabia's 2027 Growth at 7.9 Percent
Confirmed
In Short: The International Monetary Fund (IMF) projects Saudi Arabia's economy to grow by 7.9 percent in 2027, outpacing the global average of 3.4 percent, according to Arabnews.
The International Monetary Fund (IMF) projects Saudi Arabia's economy to grow by 7.9 percent in 2027, outpacing the global average of 3.4 percent, according to Arabnews.
The IMF's forecast for Saudi Arabia's growth in 2027 is a 2.4 percentage point increase from its July update, signaling a stronger rebound following an expected contraction this year.
Globally, the IMF projects growth of 3.1 percent in 2026, an upward revision from its July update, down from an estimated 3.5 percent in 2025 before accelerating to 3.4 percent in 2027.
The Kingdom’s gross domestic product is projected to shrink by 3.3 percent in 2026, after expanding by 4.6 percent in 2025, according to the IMF’s October World Economic Outlook.
The recovery in Saudi Arabia's economy depends on trade and energy flows returning to normal, as regional disruptions continue to impact the Middle East.
Saudi Arabia's economy is somewhat less affected due to its diversified export routes, which have helped cushion the impact of regional disruptions.
The strategic East-West onshore oil pipeline, which helps Saudi Arabia bypass the Strait of Hormuz, is set to increase its capacity to 10 million barrels per day within two to three years, according to Saudi Energy Minister Prince Abdulaziz bin Salman.
The pipeline's expansion will add 3 million barrels per day to its capacity, helping Saudi Arabia divert most of its crude oil exports away from the choked Strait of Hormuz and through the Yanbu port on the Red Sea.
Saudi Arabia's inflation rate is expected to remain contained at 1.9 percent in 2026 and 2.2 percent in 2027, according to the report.
The recovery in regional stability and economic activity should support investor confidence, while Saudi Arabia’s public investment capacity provides continuity for major projects and reforms.
The tourism sector is expected to benefit as regional confidence and travel normalize, but the more important development would be the sector’s shift from rapid capacity expansion toward sustainable value creation.
The UAE economy is expected to contract by 3.9 percent in 2026, followed by a sharp rebound to 7.7 percent in 2027.
What's confirmed
- The International Monetary Fund (IMF) projects Saudi Arabia's economy to grow by 7.9 percent in 2027, outpacing the global average of 3.4 percent, according to Arabnews.
- The IMF's forecast for Saudi Arabia's growth in 2027 is a 2.4 percentage point increase from its July update, signaling a stronger rebound following an expected contraction this year.
- Globally, the IMF projects growth of 3.1 percent in 2026, an upward revision from its July update, down from an estimated 3.5 percent in 2025 before accelerating to 3.4 percent in 2027.
- The Kingdom’s gross domestic product is projected to shrink by 3.3 percent in 2026, after expanding by 4.6 percent in 2025, according to the IMF’s October World Economic Outlook.
- The recovery in Saudi Arabia's economy depends on trade and energy flows returning to normal, as regional disruptions continue to impact the Middle East.
- Saudi Arabia's economy is somewhat less affected due to its diversified export routes, which have helped cushion the impact of regional disruptions.
- The strategic East-West onshore oil pipeline, which helps Saudi Arabia bypass the Strait of Hormuz, is set to increase its capacity to 10 million barrels per day within two to three years, according to Saudi Energy Minister Prince Abdulaziz bin Salman.
- The pipeline's expansion will add 3 million barrels per day to its capacity, helping Saudi Arabia divert most of its crude oil exports away from the choked Strait of Hormuz and through the Yanbu port on the Red Sea.
- Saudi Arabia's inflation rate is expected to remain contained at 1.9 percent in 2026 and 2.2 percent in 2027, according to the report.
- The recovery in regional stability and economic activity should support investor confidence, while Saudi Arabia’s public investment capacity provides continuity for major projects and reforms.
- The tourism sector is expected to benefit as regional confidence and travel normalize, but the more important development would be the sector’s shift from rapid capacity expansion toward sustainable value creation.
- The UAE economy is expected to contract by 3.9 percent in 2026, followed by a sharp rebound to 7.7 percent in 2027.
What's still developing
- “The next phase will increasingly be about occupancy, pricing power, visitor spending and returns on those assets,” he said.
- The Iran-aligned Houthis in Yemen vowed in July to halt Saudi shipments through the Bab el-Mandeb Strait, which is the shortest route for Saudi oil supply from Yanbu to reach Asian markets.
- So while it's no real surprise to see Bahrain (at Sakhir) and Saudi Arabia back on the calendar for now, the move to incorporate 10 sprints is eyebrow-raising - as is the choice of some of those sprint-hosting venues.
- Abdulaziz Alwasil, the Arab Group reiterated its rejection of settlement expansion, land confiscation, forced displacement, and the targeting of civilians.
- We were actually going to be lower until reports of the Houthis attacking Saudi Arabia caused oil prices to shoot up.
- Having identified Bahrain, Iraq, Kuwait and Qatar as among the hardest hit economies in the region in 2026, the IMF forecast double-digit expansions for them in 2027 once conditions normalize.
- Commenting on Saudi Arabia’s economic outlook for 2027, Thomas Kuruvilla, managing partner of Arthur D.
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