Saudi Economy Contracts 4.8% in Q2 Amid Oil Slump
Saudi Arabia's economy contracted by 4.8% in the second quarter of 2026, according to flash estimates from the General Authority for Statistics (GASTAT). The decline was mainly due to a 24.7% drop in oil activity, which outweighed growth in non-oil activities and government output.
Non-oil activity grew by 0.6% in the quarter, while government activity rose by 0.9%. Despite this, Saudi crude production increased by 12% month-on-month to 7.4 million barrels per day in July, reflecting resilient output despite regional geopolitical tensions.
The brokerage's Saudi Construction Index rose to 55.2 in July, its second-highest reading of the year, driven by continued momentum across infrastructure, residential and non-residential segments. Infrastructure activity was the main driver, reaching a year-to-date high of 56.9, while residential activity expanded strongly at 56.0.
Fiscal revenue rose 12.3% year-on-year to 339 billion riyals ($90.4 billion) in the second quarter, driven by a 22% increase in oil revenue and 2.5% growth in non-oil revenue.