Saudi Real GDP Falls 4.7% in Q2 2026 on Oil Decline

Saudi Arabia's real gross domestic product contracted 4.7% year-on-year in the second quarter of 2026, The decline was driven mainly by a sharp fall in oil activities, while non-oil and government activities continued to grow.

Oil activities dropped 24.8% year-on-year during the quarter, weighing heavily on the overall figure. In contrast, non-oil activities grew 0.9% and government activities also expanded 0.9% over the same period, reflecting continued momentum outside the energy sector.

The revised numbers were slightly adjusted from earlier flash estimates, which had shown real GDP down 4.8%, oil activities down 24.7%, non-oil activities up 0.6%, and government activities up 0.9%. On a seasonally adjusted quarter-on-quarter basis, real GDP fell about 4.8% to 4.9%, with oil activities down around 21.5% and non-oil activities down roughly 0.4% to 0.5%.

At current prices, GDP in the second quarter reached about SAR 1.26 trillion, up 7.5% year-on-year. Within that figure, the non-oil sector grew about 3.0%, the private sector expanded about 3.1%, and the oil sector grew about 25.0%. Budget data for the quarter showed oil revenues of about SAR 185 billion, up 22% year-on-year, and non-oil revenues of about SAR 154 billion, up 3% year-on-year.

For residents and businesses across the Kingdom, the figures highlight a familiar pattern: headline growth remains sensitive to oil output, while the non-oil economy continues its steady, diversified expansion in line with the country's long-term economic goals. The official GDP and national accounts releases are published through the General Authority for Statistics.

---

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