Business · Economy · 13 hrs ago
OECD chief says Saudi economy is resilient, with 4% growth forecast for 2027
OECD chief Mathias Cormann says Saudi Arabia is more resilient than most regional economies as the Middle East conflict disrupts energy supplies.
The kingdom has alternative routes for exporting oil, giving it more flexibility than some neighbours.
High oil prices have also offset part of the impact of a sharp drop in export volumes.
Economic reforms to diversify beyond oil have added to the country’s ability to withstand energy-market shocks.
The OECD expects Saudi growth of about 4% in 2027, describing this as a strong recovery.
That forecast assumes the conflict ends; if it continues or escalates and energy prices stay high, the OECD says it would need to reassess its outlook.
Cormann also warned that heavy borrowing for artificial-intelligence investments could bring market corrections if returns fall short of expectations.
OECD Secretary-General Mathias Cormann said Saudi Arabia’s economy is more resilient than most economies in the region to the energy shock caused by the Middle East conflict.
He attributed that resilience partly to alternative oil export routes, higher crude prices and reforms to diversify the economy.
Cormann forecast a recovery, with growth of about 4% in 2027.
The forecast assumes the conflict ends; a prolonged or escalating conflict and persistently high energy prices could prompt the OECD to reassess it.
- Who
- Mathias Cormann, secretary-general of the OECD.
- What
- He said Saudi Arabia’s economy is resilient and forecast growth of about 4% in 2027.
- When
- The interview was reported on October 16, 2026. The growth forecast is for 2027.
- Where
- In an interview with Asharq Bloomberg on the sidelines of the IMF and World Bank meetings in Bangkok.
- Why
- Alternative oil export routes, higher crude prices and economic diversification reforms support resilience. The forecast assumes the Middle East conflict ends.
This story does not have two clearly opposing sides.
Al Eqtisadiah reported Cormann’s interview on the sidelines of the IMF and World Bank meetings in Bangkok.
Cormann said the OECD expects Saudi Arabia’s economy to grow by about 4%.
- Forecast
- About 4% growth in 2027
- Interview location
- Bangkok
- Oil export flexibility
- Saudi Arabia has alternative oil export routes
- Forecast assumption
- The Middle East conflict ends
- Published
- October 16, 2026
What people are saying
Saudi Arabia is much more resilient, indeed in a much stronger position than most other countries in the region
We expect growth of around 4%, which means a fairly strong recovery
We are clearly assuming that the conflict will end
If actual outcomes fall short of expectations, risks could arise that may lead to market corrections