Saudi Arabia's fixed capital investment reached SR358.2 billion ($95.4 billion) in the first quarter of 2026, registering a 5.1% increase compared to the same period last year, according to official data. This growth reflects sustained government and private-sector funding supporting economic activity.
Non-Government Sector Leads Investment
The Ministry of Investment's May 2026 economic indicators report highlights that the non-government sector accounted for nearly 89% of total gross fixed capital formation (GFCF) during the quarter. Non-government GFCF reached SR319.9 billion, up 1.3% year-on-year, while government GFCF surged 54% to SR38.3 billion.
Vision 2030 and Broader Economic Context
The GFCF growth is part of a broader investment cycle linked to Vision 2030 projects, infrastructure spending, and private-sector expansion. The International Monetary Fund noted that the Saudi economy entered 2026 with strong momentum, supported by robust non-oil activity and domestic demand, though growth is expected to moderate this year. IMF data also highlight investment-linked imports and long-term capital deployment as key features of Saudi Arabia's medium-term outlook.
The ministry stated: "Gross Fixed Capital Formation grew by approximately 5.1% in Q1 2026. This increase is attributed to a 1.3% increase in GFCF from the non-government sector, which accounted for 89% of GFCF during the same period." It added that GFCF returned to growth after a 6% decline in 2025.
GDP and Oil Sector Performance
Nominal GDP growth was driven primarily by a 12.3% increase in oil activities. According to GASTAT data, real GDP rose by 3% in Q1 2026 compared to Q1 2025, driven by growth across all major activities, with both oil and non-oil activities expanding by 2.9%, and government activities increasing 1.5%.
Other Economic Indicators
In the first quarter, GFCF in the non-oil, non-government sector declined slightly by 0.2%. The consumer price index rose 1.7% year-on-year in April, while point-of-sale transactions increased 11.8%. The purchasing managers' index for the non-oil private sector declined 5.4% year-on-year in May to 52.8 points, remaining above the 50-point threshold that signals month-on-month improvement. Brent crude prices rose 54.2% year-on-year in April to an average of $102.5 per barrel, while Saudi oil production declined 24.8% over the same period.
