Saudi GDP Falls 4.8% in Q2 2026 on Weaker Oil

Preliminary official flash estimates show Saudi Arabia's real GDP declined 4.8% year-on-year in the second quarter of 2026, as a sharp drop in oil-sector activity outweighed continued growth in non-oil industries.

oil activities fell 24.7% year-on-year during the quarter, subtracting 5.4 percentage points from overall growth. In contrast, non-oil activities expanded 0.6% year-on-year and added 0.4 percentage points, while government activities grew 0.9% year-on-year.

On a seasonally adjusted quarter-on-quarter basis, real GDP fell 4.9% compared with the first quarter of 2026. Oil activities dropped 21.5% quarter-on-quarter, while non-oil activities edged down 0.5% over the same period.

Why it matters

The headline contraction reflects lower oil output rather than a broad weakening of the wider economy. The continued, if modest, growth in non-oil and government activities points to the ongoing diversification of the Kingdom's economy under رؤية السعودية 2030, which residents and businesses experience through expanding services, projects, and private-sector activity.

These figures are preliminary flash estimates and may be revised in later official releases. No changes to administrative fees, service prices, or government platforms are connected to this data.

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