Saudi Real GDP Contracts 4.8% in Q2 2026 as Oil Sector Drops Amid Regional Escalation

Thursday 30 July 2026 08:20

Saudi Arabia's Real Gross Domestic Product (GDP) contracted by 4.8% year-on-year in the second quarter of 2026, driven primarily by a sharp decline in oil sector activities amid the economic fallout from the conflict involving Iran, according to data released on Thursday by the General Authority for Statistics (GASTAT).

Sectoral Breakdown (YoY Performance)

Oil Activities: Plunged 24.7% year-on-year, exerting a -5.4 percentage point drag on overall real GDP growth.

Non-Oil Activities: Expanded by 0.6% year-on-year, contributing a positive 0.4 percentage points to total real GDP.

Government Activities: Grew by 0.9% year-on-year, adding 0.1 percentage points to GDP growth.

Net Taxes on Products: Added a positive 0.1 percentage points to GDP growth.

Quarter-on-Quarter (QoQ) Performance

On a seasonally adjusted basis, real GDP fell by 4.9% in Q2 2026 compared to the first quarter of the year:

Oil Activities: Dropped 21.5% QoQ.

Non-Oil Activities: Slipped 0.5% QoQ.

Government Activities: Rose 0.2% QoQ.