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Saudi Arabia’s economy expanded 2.8% year-on-year in the first quarter of 2026, slowing sharply from a 5% growth in the previous quarter, preliminary data showed. This marked the weakest pace of expansion since the second quarter of 2024, weighed down by the ongoing conflict in the Middle East. Non-oil activities grew at a slower pace of 2.8%, down from 4.3% in the previous quarter, while oil activities decelerated sharply to 2.3% from 10.8%. Meanwhile, government activities rose 1.5%, rebounding from a 1.2% decline in the prior period. On a quarterly basis, GDP fell 1.5%, the first decline since the third quarter of 2023, following a 1.4% increase in the previous quarter.
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