Saudi GDP falls 4.7% in Q2 2026 on lower oil output

Saudi Arabia's real gross domestic product (GDP) contracted 4.7% year-on-year in the second quarter of 2026 compared with the same period a year earlier, marking the first annual decline since the fourth quarter of 2023 and following a 3.0% expansion in the first quarter of 2026.

The contraction was driven mainly by a sharp 24.8% year-on-year drop in oil activities. Average crude oil production fell about 27.4% year-on-year to around 6.7 million barrels That decline in the oil sector subtracted roughly 5.4 percentage points from the overall growth rate, outweighing gains elsewhere in the economy.

Away from oil, the picture was more resilient. Non-oil activities grew between 0.6% and 0.9% year-on-year, while government activities expanded by about 0.9%, partially offsetting the sharp fall in oil output. On a quarterly basis, real GDP eased around 4.8% versus the first quarter of 2026, with oil activities down about 21.6%, non-oil activities down about 0.4% and government activities up about 0.2%.

Initial flash estimates had put the annual GDP decline at 4.8% and the drop in oil activities at 24.7%; these were later revised to a 4.7% GDP contraction and a 24.8% fall in oil activities.

For residents and business owners, the numbers underline a familiar theme: headline GDP remains sensitive to oil production levels, while the non-oil and government sectors continue to grow steadily and support everyday economic activity. This release is a routine macroeconomic statistical update and does not introduce any new fees, procedures or validity-period changes for citizens or expats.

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