Saudi Arabian Economy Contracts in Second Quarter as Oil Activities Plunge

07:10 AM EDT, 09/08/2026 (MT Newswires) -- Saudi Arabia's economy recorded a contraction in the second quarter, as growth in both government and non-oil activities failed to offset a sharp drop in oil-related operations, final data from the General Authority for Statistics showed Tuesday. The country's real gross domestic product fell 4.7% year over year in the second quarter, compared with the flash estimate of a 4.8% decline and a 3% expansion in the previous three-month period. The contraction was largely driven by a 24.8% plunge in oil activities, while government and non-oil activities each saw an increase of 0.9%. By sector, oil activities reduced real GDP growth by 5.4 percentage points, whereas non-oil activities added 0.6 percentage points. Government activities and net taxes on products, meanwhile, positively contributed 0.1 percentage points each. "Several economic activities recorded positive year-on-year growth rates, with community, social & personal services activities recording the highest growth rates in Q2 of 2026, at 4.1% Y-o-Y and 0.6% Q-o-Q. This is followed by finance, insurance and business services activities, which grew 3.3% Y-o-Y and 0.7% Q-o-Q," the statistics agency said. On a quarterly basis, the kingdom's seasonally adjusted real GDP declined 4.8% in the second quarter, against the preliminary reading of a 4.9% fall and the revised 1.4% decrease in the prior three-month period. The quarterly decline was primarily attributed to a 21.6% drop in oil activities, alongside a 0.4% decline in non-oil activities. In contrast, government activities edged up 0.2% over the period.