Saudi Non-Oil Sectors Lead Growth in Q1 2026

Saudi Arabia's economy continued to expand in the first quarter of 2026, with real gross domestic product growing by roughly 2.8% to 3.0% year-on-year. The latest figures show that non-oil activities remained the main engine of growth, underscoring the Kingdom's ongoing shift toward a more diversified economy.

Non-oil activities grew by around 2.8% to 2.9% year-on-year during the quarter, matching or outpacing the oil sector. These activities contributed about 1.7 percentage points to total GDP growth, compared with roughly 0.7 to 0.8 percentage points from oil activities and 0.3 percentage points from government activities.

While non-oil growth slowed from about 4.3% to 4.6% in the previous quarter, it still reflected continued positive momentum. Recent estimates now place non-oil sectors at around 55% to 56% of the Kingdom's total real economy, signalling a lasting structural shift.

Why it matters

For residents and businesses across Riyadh, Jeddah and beyond, the trend points to a broader base of economic activity beyond oil. From 2024 to 2025, non-oil GDP grew by about 4.5% to 4.9% staying above 4% for several consecutive years. Forecasts project non-oil growth of roughly 4.3% to 5.8% in 2026.

Overall Saudi GDP growth for 2026 is projected between about 3.1% and 4.7%, with major forecasts identifying non-oil sectors — supported by domestic demand, services and manufacturing — as the primary driver. The direction aligns with the diversification goals of رؤية السعودية 2030, and suggests continued opportunities in services, retail and industry for the community.

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