Saudi Arabia's Operating Revenues Index Grows 6.1% in June 2026 with Building Permits Up 20.3%

This increase in operating revenues and building permits reflects the ongoing diversification efforts under Saudi Vision 2030, impacting regional economic dynamics.

• Saudi Arabia's Operating Revenues Index rose 6.1% year-on-year in June 2026, reaching 114.6 points.
• Building permits surged by 20.3% to 5,045, indicating robust construction activity despite a slight monthly dip.
• Sectoral growth was led by manufacturing, financial services, and transportation, while mining and quarrying saw a decline.

• GASTAT's data is part of a broader initiative to track economic performance as Saudi Arabia shifts away from oil dependency.
• Previous months showed a consistent trend of non-oil sector growth, with May 2026 reporting an 11.4% increase.
• The Employees Compensation Index also rose by 9.1% annually, suggesting improved labor market conditions.

The recent data from the General Authority for Statistics (GASTAT) indicates a significant uptick in Saudi Arabia's non-oil economic activities, which is crucial for the Kingdom's long-term vision of economic diversification. The Operating Revenues Index, which measures the performance of various sectors, climbed to 114.6 points in June 2026, marking a 6.1% increase compared to the same month in the previous year. This growth is primarily driven by sectors such as manufacturing, financial and insurance activities, transportation and storage, real estate, and utilities, which collectively reflect a shift towards a more diversified economy.

The manufacturing sector alone saw a remarkable growth of 16.9%, while financial and insurance activities also contributed significantly. Transportation and storage grew by 18.4%, and real estate by 15%. These figures highlight a robust demand for services and goods, indicating that businesses are increasingly investing in these sectors. However, the mining and quarrying sector experienced a decline of 10.9%, which could signal challenges in the oil sector, traditionally a cornerstone of the Saudi economy.

In parallel, the surge in building permits—up 20.3% year-on-year to 5,045—suggests a booming construction industry, which is vital for supporting the Kingdom's infrastructure needs and urban development goals. Despite a slight monthly dip of 0.2%, the annual increase indicates strong confidence among developers and investors in the real estate market. This aligns with the broader objectives of Saudi Vision 2030, which aims to enhance the quality of life and economic opportunities for citizens.

Moreover, the Employees Compensation Index's rise of 9.1% annually indicates that wages are increasing, which can lead to higher consumer spending and further stimulate economic growth. This is essential for creating a sustainable economic environment where non-oil sectors can thrive.

Overall, these statistics reflect a positive trajectory for Saudi Arabia's economy, showcasing the effectiveness of its diversification strategies. However, the decline in mining and quarrying raises questions about the sustainability of oil revenues and the need for continued investment in alternative sectors.

• Construction companies: Increased demand for building permits leads to more projects and job opportunities.
• Manufacturers: Growth in manufacturing indicates higher production needs, potentially leading to expanded operations.
• Real estate developers: A surge in building permits suggests a favorable environment for new developments and investments.
• Financial services: Increased economic activity may drive demand for financial products and services.
• Workers in non-oil sectors: Rising compensation indicates better job prospects and wage growth.

• Future building permits data: Monitoring upcoming figures will reveal whether the construction boom continues or stabilizes.
• Sector-specific growth rates: Pay attention to how different sectors perform in the coming months, particularly manufacturing and real estate.
• Global economic conditions: Changes in global markets could impact Saudi Arabia's non-oil sectors, influencing investment flows and economic stability.