Overview:
Saudi Arabia's economy contracted in the third quarter of 2026 owing to weakness in petroleum output and government activity, though private non-oil industries maintained growth. The General Authority for Statistics reported real GDP fell 3.8 percent compared to the same quarter in 2025. Oil activities fell sharply, while non-oil sectors delivered modest expansion. Separately, Saudi Aramco and the Public Investment Fund completed a deal giving Aramco a 49 percent stake in artificial intelligence company Humaine, with the fund retaining 51 percent.
Details:
The General Authority for Statistics disclosed that oil-dependent sectors contracted 20.4 percent year-on-year in the third quarter, while government activity retreated 2.7 percent. Non-oil economic activity achieved a 1.9 percent expansion during the same period, signaling resilience in private enterprise and services outside energy.
The completion of the Aramco-Humaine transaction marks a strategic allocation of capital toward artificial intelligence infrastructure. Both entities will contribute assets, technical capabilities, and personnel to accelerate global expansion of the AI company. The arrangement intends to support development of integrated, competitive artificial intelligence systems spanning data centers, high-performance computing, advanced models, and enterprise applications.
Separately, gold prices recovered 0.7 percent to 3,900.90 dollars per ounce in spot trading during Monday's session, regaining ground after the prior session's year-low close. Oil price declines eased inflation concerns. Investors monitored statements from U.S. Federal Reserve officials for signals on interest rate direction.
Outlook:
Investors will track whether the non-oil sector sustains its 1.9 percent growth trajectory in coming quarters. Markets are assessing Federal Reserve communications for clues on the pace and scale of interest rate moves, with implications for energy and commodity valuations.