Saudi GDP Contracts 4.7% in Q2 2026 on Lower Oil Output

Saudi Arabia's real gross domestic product contracted 4.7% year-on-year in the second quarter of 2026, The figure was slightly revised from a preliminary estimate of a 4.8% decline.

The contraction reversed a 3.0% real GDP expansion recorded in the first quarter of 2026. On a seasonally adjusted quarter-on-quarter basis, real GDP fell about 4.8% to 4.9% in Q2 2026, following a modest decline in the previous quarter.

The drop was driven mainly by a sharp fall in oil activities, which declined about 24.8% year-on-year. The non-oil side of the economy remained slightly positive, with non-oil private activities up around 0.9% year-on-year, while government activities grew modestly by about 0.2% to 0.9%, offsetting part of the decline in oil output.

At current prices, total GDP in Q2 2026 was about SAR 1.26 trillion, up roughly 7.5% year-on-year. The final revision from -4.8% to -4.7% reflects updated national accounts published by the General Authority for Statistics.

Why it matters

For residents and businesses, the numbers point to an economy whose non-oil sectors are holding steady even as oil output pulls the headline figure down. Continued growth in non-oil private activity and government services signals ongoing demand in areas such as retail, services and public projects, which are closely tied to jobs and everyday spending across Riyadh, Jeddah and other cities.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving