Saudi real GDP contracts 4.8 pct in Q2 as oil activity plunges

Saudi Arabia’s real gross domestic product (GDP) shrank 4.8 percent year on year in the second quarter of 2026, reversing a 3.0-percent expansion in the first quarter, according to flash estimates released Thursday by the Saudi General Authority for Statistics.

The downturn was mainly driven by a 24.7-percent year-on-year decline in oil activities, which subtracted 5.4 percentage points from overall growth.

In contrast, non-oil activities rose 0.6 percent, contributing positively to real GDP by 0.4 percentage points. Government activities and net taxes on products contributed 0.1 percentage points respectively.

On a seasonally adjusted basis, real GDP fell 4.9 percent from the previous quarter. Oil activities plunged 21.5 percent and non-oil activities dipped 0.5 percent, while government activities rose 0.2 percent.

The authority noted that the figures are preliminary, based on incomplete quarterly data.

Tokyo stocks ended higher Friday, following robust earnings from AI- and chip-related companies in Japan and the United States.

The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended up 2,494.59 points, or 4.03 percent, from Thursday at 64,362.02.

The broader Topix index, meanwhile, finished 50.80 points, or 1.29 percent, higher at 4,003.30.

Driven by AI- and semiconductor-related shares, the benchmark Nikkei index briefly surged over 5 percent, as investor sentiment was buoyed by solid earnings reports from Microsoft Corp. and Tokyo Electron Ltd., analysts said.