Standard Chartered Sees Stronger Saudi, UAE Q3 Momentum as Saudi POS Spending Rises 6%
Updated
Updated · Arab News · Jul 6
Standard Chartered Sees Stronger Saudi, UAE Q3 Momentum as Saudi POS Spending Rises 6%
3 articles · Updated · Arab News · Jul 6
Summary
Standard Chartered said Saudi Arabia and the UAE should see stronger business momentum in Q3 2026, with easing regional tensions and recovering trade adding to resilient domestic demand.
Saudi data underpins that view: point-of-sale transactions rose 6% year on year in May, Q1 GDP grew 3%, and the non-oil PMI climbed to 53.3 from 52.8.
The bank said sustained investment, softer inflation and a firmer labor market should support Saudi activity, while the partial reopening of the Strait of Hormuz has helped oil exports recover to near-full levels.
UAE non-oil activity also stayed in expansion territory in June, with domestic consumption and investment driving growth as external demand gradually improves and oil exports rebound.
Broader forecasts remain supportive: the OECD sees Saudi GDP growing 3.2% in 2026 and 4.3% in 2027, broadly matching IMF projections of 3.1% and 4.5%.
With soaring deficits and falling tourism, is the Gulf's non-oil economic boom built on a fragile foundation?
As Saudi Arabia and the UAE diverge on oil policy, who will win the race for foreign investment in the post-conflict Gulf?
After the Hormuz crisis, are new trade corridors enough to secure the Gulf's future against the next major conflict?
Q3 2026 Economic Momentum: Saudi Arabia and UAE Drive Resilient Growth Amid Geopolitical Uncertainty
Overview
In Q3 2026, the UAE’s economy stands out for its resilience and strong momentum, especially in non-oil sectors. This growth is mainly driven by robust domestic consumption and sustained investment, which together support internal demand and help maintain economic activity even during uncertain times. The depth of the UAE’s economic fundamentals and its strategic focus on diversification further reinforce this positive trend. Additionally, the external sector is showing signs of gradual recovery, leading to a more constructive outlook for the quarter. These factors highlight the UAE’s effective approach to building a stable and diversified economy.