Saudi economy shrinks less as non-oil growth rises
The article highlights the temporary contraction experienced by the Saudi economy in the second quarter of 2026, recording a decline of -4.7% year-on-year due to the impact of geopolitical tensions, particularly the war between America, Israel, and Iran, and a 26% reduction in Saudi oil production during this quarter. Despite this, the non-oil sector continued its growth for the 22nd consecutive time, with its growth rate rising from 0.6% to 0.9%. The International Monetary Fund provided an optimistic outlook, noting that Saudi Arabia demonstrated high resilience thanks to economic reforms and sound policies, enabling it to efficiently manage shocks and maintain oil exports through the East-West pipeline, despite their reduction to 5 million barrels per day. The fund forecasts that the Saudi economy will grow by 1.7% in 2026, with expectations of a faster growth rate of up to 5.5% in 2027—its highest in five years—thus strengthening Saudi Arabia’s position as one of the fastest-growing countries within the G20.
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