Saudi Economy Shows Resilience Despite Oil Sector Contraction

Saudi Arabia's non-oil GDP showed resilience in the second quarter, growing 0.6% compared to the same period last year.

However, this modest growth was not enough to offset a significant decline in the oil sector, which contracted by 24.7% due to disruptions caused by the conflict involving the United States and Israel against Iran.

The Strait of Hormuz, a critical route for oil exports from Gulf countries, nearly came to a standstill during this period, but Saudi Arabia was able to redirect some of its exports through ports on the Red Sea coast.

The government's statistical authority GASTAT released preliminary data showing an overall GDP decline of 4.8% in the second quarter.