Saudi Non-Oil Economy Grows 0.9% in Q2 2026

Saudi Arabia's non-oil economy continued to expand in the second quarter of 2026, with non-oil activities growing 0.9% year-on-year, even as overall real GDP contracted 4.7% because of a steep drop in oil production.

oil activities fell about 24.8% year-on-year during the quarter, the main driver behind the overall contraction. In contrast, non-oil activities and government activities each rose 0.9% compared with the same period a year earlier.

The updated numbers were revised upward from earlier flash estimates, which had put non-oil growth at 0.6% and the real GDP contraction at 4.8%. On a seasonally adjusted basis, real GDP also declined quarter-on-quarter, reflecting the large drop in oil activities alongside a slight decline or stagnation in the non-oil sector.

Why it matters

At current prices, the Kingdom's GDP reached about SAR 1.26 trillion in the second quarter, up 7.5% year-on-year. Measured at current prices, the non-oil sector grew 3.0% and the private sector expanded 3.1%, while the oil sector rose 25.0% despite the drop in volume.

For residents and businesses, the continued growth of non-oil and private sector activity is a key indicator of economic diversification under Saudi Vision 2030. It signals ongoing momentum in sectors outside oil, which supports jobs, local business, and everyday commercial activity even during periods of lower oil output.

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