Saudi Arabia's non-oil economy continued to show strength in 2026, with growth driven by steady domestic demand, government spending, stable public-sector employment, and a mix of private and public investment projects.
Non-oil activity rose 2.9% year-on-year in the first quarter of 2026, and 0.3% quarter-on-quarter on a seasonally adjusted basis. The figures point to the economy's ability to maintain momentum beyond the oil sector.
Overall real GDP growth was projected at 1.7% for 2026, while non-oil growth was projected at a stronger 2.6%. Inflation was expected to remain contained at 2.2% for the year.
Why it matters for the community
For residents and expats across the Kingdom, a resilient non-oil economy generally translates into more stable prices, continued job opportunities, and ongoing investment in services, infrastructure, and new projects. Low projected inflation also means household budgets face less pressure from rising costs.
The continued expansion of non-oil sectors reflects the broader direction of رؤية السعودية 2030, which aims to diversify the economy and reduce reliance on oil. For businesses, steady domestic demand and active investment activity offer a supportive environment for growth and expansion.
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