Saudi Arabia's Economy Expands by 2.8% in Q1 as Non-Oil Sector Grows
Saudi Arabia's real GDP increases by 2.8% year-on-year in the first quarter of 2026, with non-oil activities leading growth.
Riyadh: Saudi Arabia's real gross domestic product (GDP) expanded by an annual rate of 2.8 percent during the first quarter of 2026, according to flash estimates released by the General Authority for Statistics (GASTAT).
This growth was driven by improvements across all economic sectors, with non-oil activities showing a notable increase of 2.8 percent year-on-year.
The robust economic performance in Saudi Arabia reflects the nation's strong financial position and progress made in diversifying its economy away from oil.
The International Monetary Fund (IMF) recently forecasted that Saudi Arabia's economy will grow by 3.1 percent in 2026, citing ongoing strength in domestic activity and reforms aimed at broadening the economic base.
In its latest report, GASTAT stated that the increase in real GDP was primarily due to growth across all main economic activities.
Non-oil activities contributed most significantly to this growth, adding 1.7 percentage points to the real GDP. Oil activities contributed 0.7 percent, government activities contributed 0.3 percent, and net taxes on products contributed 0.2 percent.
Seasonally adjusted data showed a different picture, however, with real GDP contracting by 1.5 percent quarter-on-quarter due to a sharp decline of 7.2 percent in oil activities.
This was partially offset by modest increases in non-oil activities (up 0.2 percent) and government activities (up 0.8 percent).
Despite the quarterly contraction, Saudi Arabia's strong economic performance in the first quarter follows a full-year growth of 4.5 percent in 2025, driven by higher oil output and sustained momentum in non-oil sectors.
This growth was driven by improvements across all economic sectors, with non-oil activities showing a notable increase of 2.8 percent year-on-year.
The robust economic performance in Saudi Arabia reflects the nation's strong financial position and progress made in diversifying its economy away from oil.
The International Monetary Fund (IMF) recently forecasted that Saudi Arabia's economy will grow by 3.1 percent in 2026, citing ongoing strength in domestic activity and reforms aimed at broadening the economic base.
In its latest report, GASTAT stated that the increase in real GDP was primarily due to growth across all main economic activities.
Non-oil activities contributed most significantly to this growth, adding 1.7 percentage points to the real GDP. Oil activities contributed 0.7 percent, government activities contributed 0.3 percent, and net taxes on products contributed 0.2 percent.
Seasonally adjusted data showed a different picture, however, with real GDP contracting by 1.5 percent quarter-on-quarter due to a sharp decline of 7.2 percent in oil activities.
This was partially offset by modest increases in non-oil activities (up 0.2 percent) and government activities (up 0.8 percent).
Despite the quarterly contraction, Saudi Arabia's strong economic performance in the first quarter follows a full-year growth of 4.5 percent in 2025, driven by higher oil output and sustained momentum in non-oil sectors.
