Saudi Arabia benefited from the East-West Pipeline, allowing exports to be rerouted to the Red Sea port of Yanbu, the World Bank said
The World Bank expects Saudi Arabia’s economy to grow by 7.9% in 2027, an upward revision of around 3% from its April 2026 forecast. 
In its Middle East, North Africa, Afghanistan, and Pakistan Economic Update, the World Bank forecast the Saudi economy to contract by 2% in 2026, a downward revision of around 5.1% from its April 2026 projection.
World Bank Saudi GDP Growth Forecasts
Period
April 2026 Forecast
October 2026 Forecast
Change
2026
3.1%
(2%)
(5.1%)
2027
4.9%
7.9%
+3%
The World Bank noted that Saudi Arabia benefited from the East-West Pipeline and was able to reroute its exports through the pipeline to the Red Sea port of Yanbu.
It said the economic fallout from the conflict was concentrated in Gulf economies, although the severity of the shock varied significantly across countries. Differences in exposure to disrupted shipping routes, damage to energy infrastructure and the ability to reroute exports have become key determinants of economic activity.
As a result, GDP in the GCC countries is expected to contract by 4.3% in 2026. The contraction reflects sharp declines in hydrocarbon production and exports following the closure of the Strait of Hormuz, as well as negative spillovers to the tourism, logistics and aviation sectors.
Saudi Arabia’s Ministry of Finance, in its 2027 budget statement last week, forecast the Kingdom’s real GDP to grow by 12.8% in 2027, compared with an expected contraction of 3.6% in 2026.
Saudi Arabia benefited from the East-West Pipeline, allowing exports to be rerouted to the Red Sea port of Yanbu, the World Bank said
The World Bank expects Saudi Arabia’s economy to grow by 7.9% in 2027, an upward revision of around 3% from its April 2026 forecast.
In its Middle East, North Africa, Afghanistan, and Pakistan Economic Update, the World Bank forecast the Saudi economy to contract by 2% in 2026, a downward revision of around 5.1% from its April 2026 projection.
World Bank Saudi GDP Growth Forecasts
Period
April 2026 Forecast
October 2026 Forecast
Change
2026
3.1%
(2%)
(5.1%)
2027
4.9%
7.9%
+3%
The World Bank noted that Saudi Arabia benefited from the East-West Pipeline and was able to reroute its exports through the pipeline to the Red Sea port of Yanbu.
It said the economic fallout from the conflict was concentrated in Gulf economies, although the severity of the shock varied significantly across countries. Differences in exposure to disrupted shipping routes, damage to energy infrastructure and the ability to reroute exports have become key determinants of economic activity.
As a result, GDP in the GCC countries is expected to contract by 4.3% in 2026. The contraction reflects sharp declines in hydrocarbon production and exports following the closure of the Strait of Hormuz, as well as negative spillovers to the tourism, logistics and aviation sectors.
Saudi Arabia’s Ministry of Finance, in its 2027 budget statement last week, forecast the Kingdom’s real GDP to grow by 12.8% in 2027, compared with an expected contraction of 3.6% in 2026.
