Saudi Arabia’s private sector sentiment remains positive, with the Business Confidence Index (BCI) registering 52.1 points in March 2026. While this figure reflects continued optimism in economic activity, it marks a 14.2% decrease from February’s high of 60.7 points, signaling the impact of current geopolitical pressures on business outlook.
Quick Facts
- March 2026 BCI: 52.1 points
- Month-on-month decrease: 14.2%
- Indicator remains in optimistic range (>50)
Sector-Wide Confidence Cools Down
The dip in confidence was observed across several key non-oil sectors, though all remained above the 50-point mark that separates optimism from pessimism.
The industrial sector’s index saw the sharpest decline, falling 15.8% to 50.8 points. This was primarily influenced by a drop in confidence regarding current sales and an expected increase in input costs.
Similarly, the services sector index reached 52 points, a 14.9% month-on-month decrease. This adjustment was attributed to lower confidence in current purchase orders and concerns over rising input costs for the coming month.
The construction sector’s index registered 53 points, down 12.6% compared to February. Like other sectors, this was impacted by declining confidence in purchase orders and the anticipation of higher input costs.
About the Business Confidence Index
The Business Confidence Index (BCI) is an economic indicator designed to measure the level of optimism among private sector businesses regarding current economic conditions and future expectations. The index is calculated on a scale from zero to 100, where a reading above 50 points indicates a positive or optimistic outlook, while a reading below 50 suggests a pessimistic view.
Source: Zawya
