Saudi GDP Falls 4.8% in Q2 2026 on Oil Decline

Saudi Arabia's real gross domestic product (GDP) declined 4.8% year-on-year in the second quarter of 2026 compared with the same period of 2025, according to flash preliminary estimates released by the General Authority for Statistics (GASTAT).

The contraction was driven mainly by the oil sector, where activities fell 24.7% year-on-year. In contrast, non-oil activities continued to expand, growing 0.6% over the same period, while government activities rose 0.9%.

On a seasonally adjusted basis, real GDP declined about 4.9% quarter-on-quarter in Q2 2026, with oil activities dropping around 21.5% compared with the previous quarter.

Why it matters

The figures highlight the ongoing effort to broaden the Kingdom's economy beyond oil under رؤية السعودية 2030. While lower oil output weighed heavily on the headline number, the continued growth in non-oil and government activities points to resilience in sectors that touch residents and businesses every day, from retail and services to construction and tourism.

For residents and expats in الرياض and جدة, the health of the non-oil economy is closely tied to employment, private-sector activity, and consumer spending. The data suggest these areas remained in modest growth despite the overall contraction.

As these are flash preliminary estimates, the figures may be revised when GASTAT publishes its detailed quarterly release. سعودي ليفنج will continue to follow the updates.

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