Saudi GDP Grew 3.0% in Q1 2026, Data Confirms

Saudi Arabia's real gross domestic product (GDP) grew 3.0% in the first quarter of 2026 compared with the same period a year earlier, official statistical data confirmed. The figures capture the economy's momentum before a sharper oil-sector decline recorded in the following quarter.

The 3.0% year-on-year expansion was broad-based. Oil activities rose 2.9%, non-oil activities also increased 2.9%, and government activities grew 1.5% over the same period. On a seasonally adjusted, quarter-on-quarter basis, however, real GDP edged down about 1.2%, mainly reflecting a drop in oil activities.

The picture shifted in the second quarter of 2026, when real GDP contracted roughly 4.7% to 4.8% year-on-year. The reversal was driven by a steep fall in oil-sector output, which declined about 24.7% to 24.8% year-on-year, wiping out the earlier gains recorded in the first quarter.

Non-oil activities in the second quarter were broadly flat, easing around 0.4% year-on-year, while government activities continued to grow modestly at about 0.2% quarter-on-quarter. Seasonally adjusted GDP fell about 4.8% to 4.9% from the previous quarter, with oil activities down roughly 21.5% to 21.6%.

Why it matters

The data underlines how heavily quarterly headline figures can swing with oil output, while non-oil activities — closely watched under national economic diversification goals — held steadier through the period. For residents and businesses in the Kingdom, the first-quarter reading offers a reference point on the broader growth trend, while the second-quarter numbers show the impact of shifts in oil production. The releases report macroeconomic aggregates and growth rates only, with no change to compilation methodology or base year.

---

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