Middle East Conflict Slams Saudi Economy by 4.8%

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 dropped by 4.8% in the second quarter.

The decline was primarily driven by a substantial 24.7% fall in oil activity, which is closely linked to the ongoing conflict. The situation was further exacerbated when the U.S. launched an attack on Iran, disrupting shipping and energy markets.

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