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2026.07.3006:08:53UTC+00Saudi Arabia GDP Contracts for First Time in Over 2 Years

Saudi Arabia’s economy contracted by 4.8% year-on-year in the second quarter of 2026, reversing a 3.0% expansion in the previous quarter, according to preliminary data. This was the first decline since the fourth quarter of 2023 and was driven primarily by a steep downturn in oil activities, which shrank 24.7% year-on-year and shaved 5.4 percentage points off overall GDP growth.

By contrast, non-oil and government activities continued to grow, albeit at a slower pace. Growth in non-oil activities eased to 0.6% from 2.9% in Q1, while government activities expanded by 0.9%, down from 1.5% previously.

On a seasonally adjusted quarter-on-quarter basis, GDP fell 4.9%, following a 1.2% contraction in the first quarter. Oil activities declined 21.5% over the quarter, non-oil activities slipped 0.5%, and government activities edged up 0.2%.

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