Saudi Non-Oil, Government Activity Up 0.9% in Q2 2026

Saudi Arabia's non-oil and government activities each grew 0.9% year-on-year in the second quarter of 2026, signaling continued momentum in the parts of the economy outside crude production.

The figure reflects updated data released in early September 2026. Earlier flash estimates issued in late July had placed non-oil growth at 0.6% year-on-year, before the number was revised upward to 0.9%.

Despite the gains outside the energy sector, overall real GDP contracted by roughly 4.7% to 4.8% year-on-year during the quarter. The decline was driven mainly by a sharp drop of about 24% to 25% in oil activities. On a seasonally adjusted quarter-on-quarter basis, real GDP fell around 4.8% to 4.9%, with oil activities down roughly 21% to 22%, non-oil activities slightly negative at about -0.4% to -0.5%, and government activities posting a small increase of around 0.2%.

In nominal terms, the picture was stronger. GDP at current prices reached about SAR 1.26 trillion in the second quarter, up 7.5% year-on-year. The non-oil sector grew around 3.0% in nominal terms, while the private sector expanded by about 3.1%.

Why it matters

The steady expansion of non-oil and government activities is central to the country's long-term economic plans under رؤية السعودية 2030, which aims to broaden the economy beyond oil. For residents and businesses, growth in these sectors points to activity in areas such as services, construction, retail and private enterprise, even during periods when oil output weighs on headline figures.

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