Saudi Arabia non-oil economy grows 0.9% in Q2 2026

Saudi Arabia’s non-oil economy grew by 0.9% year-on-year in the second quarter of 2026, according to data from the General Authority for Statistics. This figure revised upward from an initial preliminary estimate of 0.6%.

Despite the non-oil expansion, the Kingdom’s real GDP contracted by 4.7% year-on-year. This decline was driven by a 24.8% drop in oil activities, which subtracted 5.4 percentage points from the overall GDP growth. Non-oil activities provided a positive contribution of 0.6 percentage points to the growth rate.

On a seasonally adjusted basis, real GDP fell by 4.8% compared to the first quarter of 2026. During this period, oil activities decreased by 21.6%, non-oil activities fell by 0.4%, and government activities grew by 0.2%.

The International Monetary Fund (IMF) has adjusted its economic outlook for the Kingdom, lowering its 2026 growth forecast to 1.7% while raising its 2027 growth projection to 5.5%.