Saudi Arabia in May 2026: the most important developments in economy
In May 2026, Saudi Arabia's economy was shaped by the closure of the Strait of Hormuz and by changes inside OPEC. Saudi Aramco reported a 25% rise in first-quarter profit on 10 May, at a time of higher oil prices and with its East-West pipeline carrying oil around the strait. Its chief executive said the world had been deprived of 1 billion barrels of oil over two months, warned that fuel stocks were heading for critically low levels and called the situation the worst energy crisis in history. Saudi crude exports fell to record lows according to JODI data, and OPEC cut its global oil demand forecast on 13 May.
The United Arab Emirates left OPEC and OAPEC, and the ADNOC oil company accelerated a $55 billion investment plan. Seven OPEC+ members agreed to raise their output limit by 188,000 barrels per day for June, and sources said the group was expected to raise its July target as well. A Reuters survey put OPEC oil output at a 26-year low. Commentators asked whether other members might follow the UAE out.
Saudi companies reported strong results. Zain Saudi Arabia's quarterly profit rose 116% to $201 million, and three other Saudi firms also reported higher profits. Ma'aden's results were weighed down by market optimism, and STC shareholders approved a buyback of 26 million treasury shares. Aramco and Petronas signed a deal to transfer shares in a Malaysian project.
The kingdom also moved ahead with its Red Sea and non-oil plans. Saudi Arabia turned to its Red Sea ports, including Neom, launched the Red Sea Express cargo service and opened a Four Seasons resort on Shura Island, while Riyadh Air began ticket sales for its first commercial route, to London. The Gulf Cooperation Council and the UK signed a free trade agreement, and Saudi Arabia and the UAE both cut their holdings of US Treasury securities in March.
by WorldBrief & Maksim Micheliov | AI-generated summary
Click a day in the chart above for that day's brief.