Saudi Economy Contracts Amid Ongoing Middle East Conflict

Saudi Arabia's economy has contracted due to ongoing conflict in the Middle East, which is weighing heavily on trade, investment, and energy exports.

The Kingdom experienced one of its sharpest slowdowns in recent years, with the impact of regional tensions extending far beyond the battlefield and into financial markets, business activity, and government planning.

The conflict has disrupted shipping routes critical to global energy markets, including the Strait of Hormuz, making it more difficult and costly for Gulf producers to export oil and gas.

Saudi Arabia's oil sector suffered a steep decline compared with the same period a year earlier, due to reduced export volumes, transportation challenges, and uncertainty in global energy markets.