Saudi economy contracts 3.8 percent in third quarter

Saudi Arabia's real GDP fell 3.8 percent year on year in the third quarter of 2026, a second straight contraction, as oil activities dropped 20.4 percent amid the Hormuz disruption while non-oil activities grew 1.9 percent, according to GASTAT flash estimates.

Why it matters: The print quantifies the war's cost to the world's largest oil exporter: output recovered 1.3 percent on the quarter in seasonally adjusted terms, but a fifth off oil activity year on year is still overwhelming growth in the non-oil economy.

Data as of General Authority for Statistics (GASTAT) flash estimates for the third quarter of 2026, as reported in full by Arab News on November 1, 2026 and corroborated by a second summary (fx.co) carrying identical headline figures. GASTAT's own Q3 release text was not obtained in this run: the authority's news listing was checked on November 1, 2026 and did not carry the GDP item, so the figures ship as reported from the official release by two outlets. Developing item.

Saudi Arabia’s real GDP contracted 3.8 percent year on year in the third quarter of 2026, after a 4.7 percent fall in the second quarter, according to flash estimates from the General Authority for Statistics reported by Arab News. Oil activities fell 20.4 percent from a year earlier and subtracted 4.7 percentage points from growth, while non-oil activities rose 1.9 percent, accelerating from 0.8 percent in the second quarter, and government activities fell 2.7 percent. On a seasonally adjusted basis the economy grew 1.3 percent from the second quarter, reversing a 4.8 percent quarterly contraction, as oil activities rebounded 5.7 percent on the quarter.

Saudi economy contracts 3.8 percent in third quarter

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