Saudi Arabia’s real gross domestic product contracted 4.8% year-on-year in the second quarter of 2026, said Al Rajhi Capital, a leading financial group in Saudi Arabia, citing flash estimates from the General Authority for Statistics (GASTAT), as a 24.7% decline in oil activity outweighed growth in non-oil activities and government output.

Non-oil activity grew 0.6% in the quarter, while government activity rose 0.9%, the data showed.

Saudi crude production rose 12% month-on-month to 7.4 million barrels per day in July, reflecting resilient output despite regional geopolitical tensions, stated Al Rajhi Capital.

The brokerage’s Saudi Construction Index rose to 55.2 in July, its second-highest reading of the year, driven by continued momentum across infrastructure, residential and non-residential segments. Infrastructure activity was the main driver, reaching a year-to-date high of 56.9, it added. 

Residential activity also expanded strongly at 56.0, while non-residential construction posted a reading of 53.4.

Demand and business sentiment in the construction sector strengthened further, with new orders rising to a five-month high of 59.3. Expectations for activity over the next 12 months climbed to a survey record of 71.8, while the three-month outlook eased to 62.3.

Saudi Arabia’s unemployment rate fell to 6.4% in the first quarter of 2026 from 7.2% in the fourth quarter of 2025, with male unemployment declining to 4.9% from 5.6% and female unemployment falling to 9.0% from 10.3%.

Fiscal revenue rose 12.3% year-on-year to 339 billion riyals ($90.4 billion) in the second quarter, driven by a 22% increase in oil revenue and 2.5% growth in non-oil revenue.

Government spending increased 11% year-on-year to 373 billion riyals in the quarter.