Why 94 percent of Saudi CEOs are confident in 2026 economic growth, 80 percent support AI adoption

Business leaders in Saudi Arabia are entering 2026 with profound confidence in domestic expansion, bolstered by persistent non-oil momentum, record-breaking investment inflows, and the steady advancement of Vision 2030. Insights from PwC’s 29th Global CEO Survey indicate that while global markets face ongoing uncertainty, CEOs within the Kingdom are balancing short-term operational discipline with bold, long-term aspirations. They are doubling down on innovation, artificial intelligence (AI), and strategic acquisitions to architect resilient, future-ready enterprises.

The survey highlights that 94 percent of Saudi CEOs express confidence in domestic economic growth—a significant rise from the previous year. This reflects a hardening of business sentiment and a collective belief in the Kingdom’s long-term economic path. Despite macroeconomic and geopolitical hurdles, Saudi Arabia continues to reap the benefits of structural reforms, public investment, and a rapid diversification across priority sectors.

Riyadh Al Najjar, Chairman of the Board & Saudi Country Senior Partner, PwC Middle East, stated: “CEOs in Saudi Arabia are entering the next phase of growth with confidence and clarity of purpose. By leveraging the Kingdom’s leading investment capabilities and Vision 2030 growth agenda, business leaders are investing in AI, innovation, and new sectors to build resilient, future-ready organizations. This ambition is rooted in a shared responsibility and immense pride in our nation, and a collective drive to compete and lead globally.”

Transitioning from discipline to long-term growth

While immediate revenue expectations remain measured due to a cautious global climate, confidence strengthens significantly over a medium-term horizon. 71 percent of Saudi CEOs anticipate revenue growth over the next three years—a figure notably higher than the global average. This outlook highlights a strategic pivot toward long-term value creation as non-oil demand scales and diversification efforts reach maturity.

Saudi Arabia’s status as a premier global investment hub reinforces this optimism. Robust foreign direct investment (FDI), a flourishing private sector, and a pipeline of “giga-projects” in tourism, infrastructure, manufacturing, and technology are driving improved corporate performance and national competitiveness.

AI and innovation at scale

Innovation has shifted from a peripheral concern to the core of corporate strategy in the Kingdom. Approximately 65 percent of CEOs identify innovation as a critical pillar of their business strategy, with AI serving as the primary catalyst for reinventing operating models and customer engagement. Furthermore, 80 percent of CEOs believe their organizational culture is conducive to AI adoption, placing Saudi firms ahead of many international peers in their readiness to scale AI effectively.

Read more: 29 percent of Middle East CEOs report leadership attraction, development and retention as their biggest challenge 

M&A as competitive accelerator

Optimism regarding the growth outlook is also driving significant deal activity. 73 percent of Saudi CEOs intend to pursue a major acquisition in 2026, a rate far exceeding global trends. Mergers and acquisitions (M&A) are increasingly utilized as strategic tools to secure new technologies, capabilities, and markets.

In the next three years, 84 percent of Saudi CEOs expect deal value to originate from sectors outside their primary industry, compared to only 63 percent of their global counterparts. This underscores a proactive approach to capturing emerging opportunities in technology, industrials, and consumer services. Technology, media, and telecommunications have specifically emerged as the primary targets for diversification.

Fortifying resilience

Despite the optimistic outlook, Saudi business leaders remain focused on prominent risks, including geopolitical tension, cyber threats, and climate challenges. These concerns are fostering a heightened emphasis on supply-chain resilience, operational agility, and advanced cybersecurity.

As Saudi Arabia enters its next evolutionary stage, the survey outlines a definitive leadership agenda: maximizing productivity, scaling AI, cultivating talent ecosystems, and utilizing M&A to accelerate capabilities. CEOs who prioritize data foundations and innovation now will be uniquely positioned to lead the Kingdom’s next decade of growth and cement its status as a global economic powerhouse, PwC concluded. 

Surging foreign direct investment

This bullish sentiment is corroborated by fresh macroeconomic data released in this month. According to the Saudi General Authority for Statistics (GASTAT), net foreign direct investment (FDI) inflows achieved a significant surge, reaching SAR46.5 billion ($12.4 billion) in the first half of 2025 alone—a 29.2 percent year-on-year increase. This momentum carried through to Q3 2025, which saw net FDI inflows jump by 34.5 percent compared to the same period in 2024, signaling that the Kingdom remains an “anchor market” for international capital despite broader global volatility. 

Accelerating non-oil economic growth

On the non-oil front, the Ministry of Finance’s 2026 budget statement projects real GDP growth of 4.6 percent for the year, primarily driven by the expansion of non-oil activities. Preliminary data from late 2025 indicates that wholesale, retail, and hospitality sectors grew by 6.6 percent, while construction and financial services maintained strong growth rates of 3.8 percent and 5 percent respectively. This shift is supported by a robust Purchasing Managers’ Index (PMI) which hit 60.2 in late 2025, confirming a high-growth environment for the private sector. 

Scaling national AI investment

The drive toward AI adoption described in the PwC survey is further validated by recent industry moves. Earlier this week, tech leaders at the Oracle AI World Tour in Riyadh highlighted that the Saudi government has initiated plans to invest over $40 billion in AI. This is already materializing in the enterprise sector, with 63 percent of Saudi businesses reporting they are ready to scale AI automation in 2026 to reduce manual workloads and enhance data sovereignty. 

Strategic cross-sector market expansion

Furthermore, the trend of cross-sector M&A is gaining speed. Analysts from BCG and PwC’s Global M&A Outlook for 2026 suggest that Saudi CEOs are increasingly targeting Technology, Media, and Telecommunications (TMT) to acquire the “capability-led” assets needed to scale AI responsibly. This strategic repositioning is part of a broader “K-shaped” recovery where well-capitalized Saudi firms are outperforming global peers by moving aggressively into adjacent industries.