Middle East Conflict Devastates Saudi Economy, Oil Activity Plummets

Saudi Arabia's economy has taken a significant hit due to ongoing conflicts in the Middle East. Preliminary figures from the General Authority for Statistics (GASTAT) show that the country's real gross domestic product (GDP) dropped 4.8% in the second quarter.

The decline was largely driven by a substantial 24.7% fall in oil activity, which has been severely impacted by the conflict and subsequent US-led attack on Iran. The disruption to shipping and energy markets has further exacerbated the situation.

Economists predict that the ripple effects will lead to sharper economic contractions across the Gulf region, with recovery anticipated only by 2027 as per a recent Reuters poll.