Saudi Arabia Faces Economic Slowdown: GDP and Oil Activities Decline

Saudi Arabia experienced an economic downturn in the second quarter of 2026, with its GDP dropping by 4.8% year-on-year. Oil activities, a significant sector for the Saudi economy, suffered a sharper decline of 24.7%. This economic data was reported by Saudi-owned Al-Arabiya TV on Thursday.

Saudi Arabia's economy is showing signs of strain as its GDP contracted by 4.8% in the second quarter of 2026 compared to the previous year, according to data disclosed on Thursday by Saudi-owned Al-Arabiya TV.

The oil sector, traditionally a key driver for the kingdom's economy, experienced an even steeper decline, plummeting by 24.7% during the same timeframe. Such a significant drop in oil activities underscores the challenges faced by Saudi Arabia in maintaining its economic growth.

This downturn could have broad implications, potentially affecting everything from public spending to the country's efforts in economic diversification and Vision 2030 initiatives.