RIYADH: Saudi Arabia’s real GDP fell 4.7% year on year in the second quarter of 2026 as oil activity dropped 24.8%, while non-oil activity grew 0.9%.
Revised figures from the General Authority for Statistics (GASTAT) confirmed the contraction, with government activity also rising 0.9%.
Public finances have faced heavier demands this year. Saudi Arabia’s 2026 budget projected 1.147 trillion riyals in revenue against 1.313 trillion riyals in expenditure, leaving an expected deficit of 165 billion riyals.
The first-half deficit approached 160 billion riyals, close to the full-year projection. Spending pressures coincide with changes to some Vision 2030-linked projects.
The Cradle reported that work on the Mukaab in Riyadh’s New Murabba development had stopped for a financing and feasibility reassessment.
NEOM has also undergone a wider review, including reduced plans for The Line and delays affecting other projects, according to the same report.
Saudi Arabia’s Ministry of Finance, however, says its 2026 spending programme continues to support Vision 2030 while maintaining a strategy for managing deficits and public debt.
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The ministry estimated the kingdom’s 2026 financing needs at about 217 billion riyals, covering the projected deficit and debt repayments.
