Abu Dhabi, June 3 (Reuters) - The International Monetary Fund confirmed on Wednesday that the Saudi economy has proven resilient in the face of the war in the Middle East, but the conflict has negatively impacted non-oil activities and confidence levels, leading to a "significant" decline in growth this year.

The fund added that Saudi Arabia could see a recovery in the near term if maritime shipping traffic through the Strait of Hormuz returns to normal levels in the coming months.

Azim Sadykov, head of the IMF mission, predicted growth of "around 2 percent" in 2026, following a visit to Saudi Arabia from April 28 to May 13. This figure was significantly lower than the IMF's 2026 forecast of 3.1 percent, published in its April projections.

The fund said that if the conflict continues and intensifies, medium-term growth and investment prospects could decline.

The Iranian attacks on the Gulf states, which came in response to the American and Israeli strikes on Iran, damaged key energy facilities and disrupted shipping through the Strait of Hormuz, through which about 20 percent of the world’s oil and liquefied natural gas supplies usually pass.

The fund said that Saudi Arabia, the world's largest oil exporter, was able to limit the impact of the decline in shipments by redirecting exports through its East-West pipeline and Red Sea ports, demonstrating resilience and a capacity to withstand the pressure.

The IMF added that strong fundamentals—including low government debt and ample reserves—provide important safeguards. Higher oil prices are also expected to boost revenues and help narrow the current account and fiscal deficits in 2026.

Sadykov said, "The main risk is the potential for escalation of the conflict, which could lead to further disruptions in shipping routes, damage to energy infrastructure accompanied by losses in production levels, and an exacerbation of uncertainty and risks in the financial sector."

The IMF affirmed that the Saudi banking system is well-positioned to absorb shocks and commended the Saudi Central Bank for taking proactive steps to ensure liquidity and monitor credit conditions. It also noted that the Saudi riyal's peg to the US dollar contributes to supporting financial stability amidst uncertainty.