Saudi Arabia’s Economy Shrinks 3.8% as Oil Output Falls

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 2, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

The General Authority for Statistics reported on Sunday that Saudi Arabia’s real gross domestic product contracted by 3.8% year-over-year in the third quarter, a slight improvement from the 4.7% decline recorded in the previous quarter. This economic slowdown was primarily driven by a 20.4% drop in oil activities compared to the same period in 2025, while non-oil sectors expanded by 1.9%. The data, which covers the period through September 30, does not fully capture recent escalations involving Houthi militants, including attacks on civilian airports and critical infrastructure that have caused travel disruptions and casualties. Barclays Bank economist James Swanston noted that limited fiscal options, stemming from an inability to control oil revenues and a reluctance to reduce public spending, may lead to future taxation on residents.

Background

• Saudi Arabia and other Gulf states have pursued economic diversification under the Vision 2030 model to reduce reliance on hydrocarbon exports.
• The Tadawul All-Share index, the kingdom’s headline stock market indicator, decreased by 0.8% on Sunday.
• Recent conflicts with Iran-aligned Houthi groups have intensified, resulting in significant damage to civilian infrastructure and severe travel interruptions.

Read the full article at wsj.com

More from Monday, November 2: