Saudi GDP Falls 4.8% in Q2 2026 on Oil Decline

Aug 29, 2026

Share this article

Saudi GDP Falls 4.8% in Q2 2026 on Oil Decline

Saudi Arabia's economy shrank in the second quarter of 2026, according to a preliminary flash estimate showing real gross domestic product (GDP) fell 4.8% year-on-year. The contraction was driven mainly by a sharp downturn in the oil sector,

Oil activities dropped 24.7% compared with the same period a year earlier, subtracting roughly 5.4 percentage points from overall real GDP growth. On a seasonally adjusted quarter-on-quarter basis, real GDP declined 4.9% versus the first quarter of 2026, while oil activities fell about 21.5% on the same basis.

Away from the energy sector, the picture was more stable. Non-oil activities grew 0.6% year-on-year, and government activities expanded 0.9% over the same period. On a seasonally adjusted quarterly basis, non-oil activities eased around 0.4–0.5%, while government activities edged up about 0.2%.

This marks the first annual decline in Saudi real GDP since the fourth quarter of 2023 and the steepest since the COVID-19 pandemic period, underscoring how closely headline growth remains tied to oil output despite continued diversification efforts.

What it means for residents

The figures are macroeconomic aggregates measured in real, inflation-adjusted terms and are not directly linked to any fees or administered prices for citizens or residents. No changes to government platforms or service charges are part of this release, which focuses on overall economic performance rather than administrative procedures.

It is important to note that the estimate is preliminary and may be revised in later regular quarterly GDP releases, with more detailed figures expected in the full national accounts reporting.

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: