RIYADH: Saudi Arabia’s economy recorded a 3 percent year-on-year growth in the first quarter of 2026, with non-oil sectors serving as the main driver of expansion, according to preliminary estimates released by the General Authority for Statistics (GASTAT).

The data showed that non-oil activities contributed 1.7 percentage points to the overall GDP growth, while oil-related activities added 0.8 percentage points. Government activities and net taxes on products contributed 0.3 and 0.2 percentage points, respectively.

According to GASTAT, both the oil and non-oil sectors registered 2.9 percent annual growth during the first quarter, while government activities increased by 1.5 percent compared with the same period last year.

Among the various industries, the finance, insurance, and business services sector recorded the strongest annual growth at 5.4 percent. It was followed by manufacturing activities excluding oil refining, which expanded by 4 percent during the quarter.

The report also noted that crude oil and natural gas activities rose by 3.6 percent compared with the first quarter of 2025.

On the expenditure side, government final consumption spending increased by 11.3 percent year-on-year, while private final consumption grew by 5.3 percent. In addition, gross fixed capital formation recorded a 3.9 percent increase during the reporting period.

On a seasonally adjusted quarterly basis, however, real GDP declined by 1.2 percent compared with the fourth quarter of 2025, mainly due to a 6.8 percent decrease in oil-related activities.