Saudi Non-Oil Activity Grows 0.9% as GDP Drops 4.7%

Both non-oil and government activities in Saudi Arabia grew by 0.9% year-on-year in the second quarter of 2026, according to data from the General Authority for Statistics, the official quarterly reading of the Saudi economy's performance. This growth reflects the continued expansion of sectors outside of oil in the Saudi economy during the quarter.

Non-oil activity added 0.6 percentage points to real annual GDP growth, reflecting its continued contribution to driving the economy. This contribution serves as an indicator of the expanding role played by non-oil sectors in generating activity and creating jobs.

In contrast, real GDP contracted by 4.7% as oil activities plummeted 24.8%, deducting 5.4 percentage points from growth. This highlights the significant divergence between the performance of the two sectors during the same quarter.

These figures reveal the scale of divergence between the oil sector and other activities in the Saudi economy, with oil activity declining while the non-oil sector continues to grow. This variance is a central focus of the Kingdom's economic diversification plans, which seek to reduce reliance on oil revenues and boost other income sources. Analysts monitor this performance to measure the pace of the long-term transition away from oil.

What do these terms mean?

Gross Domestic Product: The total value of goods and services produced by a country's economy over a period of time. Non-oil activities: Economic sectors outside oil extraction and refining, such as manufacturing, tourism, and services. Percentage point: A unit measuring the difference in percentages; raising a contribution from 1% to 1.6% means adding 0.6 percentage points.