Saudi Economy Posts Steepest Quarterly Decline Since COVID-19

Saudi Arabia's economy has experienced its steepest quarterly decline since the COVID-19 pandemic, contracting by 4.8% year-on-year in the second quarter of 2026.

The slowdown is primarily attributed to disruptions in oil exports caused by tensions in the Strait of Hormuz during the conflict between the United States and Iran.

Output in Saudi Arabia's oil sector fell by 24.7% in April-June, reversing the 2.9% growth recorded in the first quarter, with oil production remaining below pre-conflict levels.