RIYADH: Saudi Arabia’s non-oil activities expanded by 0.6 percent year on year in the second quarter of 2026, even as the Kingdom’s real gross domestic product declined by 4.8 percent, official data showed.
According to flash estimates from the General Authority for Statistics, the fall in real GDP was due to a 24.7 percent drop in oil activities during the second quarter compared to the same period of 2025.
Government activities rose 0.9 percent over the same period.
The latest figures suggest the Kingdom’s non-oil economy continued to provide support for growth despite weakness in the hydrocarbons sector, reflecting the progress of Vision 2030 reforms aimed at reducing reliance on oil.
The Organization for Economic Co-operation and Development said in June that Saudi Arabia’s economy is expected to expand 3.2 percent this year before accelerating to 4.3 percent in 2027.
Saudi Arabia’s oil activities declined sharply in the second quarter of 2026 primarily because of severe disruptions to crude exports caused by the escalation of regional conflict, particularly the near-closure of the Strait of Hormuz following the outbreak of hostilities involving Iran in late February.
Quarterly GDP
In its latest report, GASTAT said Saudi Arabia’s real GDP declined by 4.9 percent in the second quarter of the year compared to the previous three months.
This fall was driven by a 21.5 percent drop in oil activities and a marginal 0.5 percent decline in non-oil activities.
Government activities edged up by 0.2 percent over the three-month period compared to the previous quarter. Oil activities contributed negatively to seasonally adjusted real GDP growth by 4.5 percentage points.
Non-oil activities and net taxes on products recorded negative contributions of 0.3 and 0.1 percentage points, respectively, while government activities recorded a slight positive contribution of 0.03 percentage points.
GDP growth in Q1
In June, GASTAT revealed that Saudi Arabia’s GDP expanded by 3 percent year on year in the first quarter of 2026, supported by growth across all major economic activities.
According to that report, both oil and non-oil activities grew 2.9 percent annually in the three months to March 31, while government activities increased 1.5 percent.
