Saudi Arabia's Economy Contracts Again Amidst Regional Conflicts
Saudi Arabia's economy contracted by 3.8% in the third quarter of 2026, marking the second consecutive quarter of negative growth. This slowdown was driven by a 20.4% drop in oil activities, while the non-oil sector grew at a modest pace of 1.9%. The economic performance comes amidst regional wars and disruptions to the energy sector and oil exports. The Saudi government has raised its estimates for the 2026 budget deficit to 4.9% of GDP, predicting a 3.6% contraction in the economy for the year.12 sourcesSee all sources