Saudi Real GDP Falls 4.8% in Q2 2026 on Oil Drop

Saudi Arabia's real gross domestic product (GDP) contracted 4.8% year-on-year in the second quarter of 2026, The decline was driven mainly by a sharp fall in oil activities, while non-oil sectors continued to record modest growth.

Oil activities dropped 24.7% year-on-year during the quarter, subtracting 5.4 percentage points from overall real GDP growth. In contrast, non-oil activities expanded 0.6% year-on-year, contributing 0.4 percentage points to growth, while government activities grew 0.9% and added 0.1 percentage points. Net taxes on products also contributed 0.1 percentage points.

On a seasonally adjusted quarter-on-quarter basis, real GDP fell 4.9%. Oil activities declined 21.5% compared with the previous quarter, and non-oil activities edged down 0.5%, while government activities rose 0.2%.

Why it matters

The headline contraction reflects the heavy weight of the oil sector in the national economy, but the continued growth of non-oil and government activities points to the ongoing diversification efforts under رؤية السعودية 2030. For residents and businesses, the resilience of non-oil sectors is a key indicator of everyday economic activity beyond energy exports.

These are flash (preliminary) estimates based on incomplete quarterly data and may be revised in later official releases. Saudi Living will follow up as updated figures become available.

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