Saudi Economy Contracts 4.8% in Q2 Amid Oil Output Slump

Saudi Arabia's economy contracted by 4.8% in Q2 of 2026, according to flash estimates from the General Authority for Statistics (GASTAT) cited by Al Rajhi Capital.

The decline was largely due to a 24.7% drop in oil activity, which outweighed growth in non-oil activities and government output.

Non-oil activity grew 0.6% in the quarter, while government activity rose 0.9%, the data showed.

Saudi crude production rose 12% month-on-month to 7.4 million barrels per day in July, reflecting resilient output despite regional geopolitical tensions.