Saudi Arabia's Operating Revenues Index rises 11.4% year-on-year in May 2026

In May 2026, Saudi Arabia's Operating Revenues Index experienced a significant year-on-year increase of 11.4%. This growth was primarily driven by strong performances in mining and manufacturing, with mining and quarrying activities surging by 38.7%. Additionally, manufacturing saw a notable increase of 9.6%. Despite these positive trends, the number of building permits issued fell sharply by 33.3% compared to the previous year.

The monthly comparison also revealed a 2.9% rise from April 2026, indicating ongoing economic resilience. However, the substantial decline in building permits raises questions about the construction sector's health and its implications for future infrastructure projects.

The increase in the Operating Revenues Index reflects a broader recovery in Saudi Arabia's economy, particularly in key sectors such as mining and manufacturing. The mining sector's remarkable growth is a significant contributor to this trend, showcasing the country's potential in resource extraction. Meanwhile, the manufacturing sector's positive performance indicates a diversification of economic activities.

However, the construction sector is facing challenges, as evidenced by the drastic drop in building permits from 7,584 in May 2025 to just 5,056 in May 2026. This decline could hinder future infrastructure development, which is crucial for sustaining economic growth and meeting the demands of a growing population.

While the overall economic indicators are encouraging, the decline in building permits may pose risks to future growth in Saudi Arabia. Stakeholders should closely monitor trends in the construction sector to assess its recovery and potential impact on the economy. Continued performance in mining and manufacturing will be essential to maintaining momentum, but the construction sector's setbacks could create challenges ahead.

Future developments in building permits and infrastructure projects will be critical to watch, as they will influence the broader economic landscape. The balance between growth in operating revenues and the health of the construction sector will determine the sustainability of Saudi Arabia's economic recovery.