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Nov 1, 2026

Saudi Arabia's GDP shrinks 3.8% in third quarter as oil output falls

Saudi Arabia's economy contracted 3.8% year-on-year in the third quarter of 2026, marking a second consecutive quarterly decline driven by falling oil production. The kingdom's non-oil sector grew 1.9%, accelerating from 0.8% in the previous quarter, but was insufficient to offset the oil sector's contraction.

Nov 1, 20264 sources

Top claims

▪Preliminary General Authority for Statistics data released November 1, 2026, shows Saudi Arabia's gross domestic product declined 3.8% year over year in third-quarter 2026, following a 4.7% second-quarter decline—its first consecutive quarterly annual declines since 2023.
▪Escalating conflict between Saudi-led forces and Iran-backed Houthi rebels in Yemen increased economic uncertainty for Saudi Arabia's non-oil businesses entering the fourth quarter of 2026.
▪Saudi Arabia partially offset oil export disruptions caused by conflict in the Strait of Hormuz by redirecting crude shipments through an east-west pipeline to a Red Sea export terminal.

Subtopics

Economic impact of the U.S.-Iran war1 Energy1 Gulf states1 Houthi-Saudi escalation1 Iran War1 Oil prices & energy markets1 Strait of Hormuz blockage1

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