Saudi Arabia’s non-oil economy continued to expand in the second quarter of 2026, even as the Kingdom’s overall real gross domestic product (GDP) declined due to weaker oil activity.
Flash estimates released by the General Authority for Statistics (GASTAT) showed that real GDP fell 4.8% year-on-year in the second quarter, largely driven by a 24.7% drop in oil activities.
In contrast, non-oil activities grew by 0.6% compared with the same period last year, while government activities recorded a 0.9% increase.
According to GASTAT, the decline in oil activities reduced overall GDP growth by 5.4 percentage points. Meanwhile, non-oil activities contributed 0.4 percentage points to growth, with government activities and net taxes on products each adding 0.1 percentage points.
On a seasonally adjusted basis, real GDP decreased 4.9% from the previous quarter. Oil activities fell 21.5%, while non-oil activities edged down 0.5%. Government activities, however, rose 0.2% during the quarter.
The latest figures highlight the continued resilience of Saudi Arabia’s non-oil sectors despite the impact of lower oil activity on the Kingdom’s overall economic performance.
