Saudi Economy Grows 4.5% in 2025 as Oil and Non-Oil Sectors Accelerate

Riyadh – Saudi Economy Grows 4.5% in 2025 as Oil and Non-Oil Sectors Accelerate, driven by robust expansion in hydrocarbon and non-energy sectors, official data showed.

According to flash estimates from the General Authority for Statistics (GASTAT), oil activities grew by 5.6 percent year-on-year, while non-oil operations expanded by 4.9 percent. Government activities contributed 0.9 percent, supporting the overall growth momentum.

“The main driver of real GDP growth in 2025 was non-oil activities, which contributed 2.7 percentage points, while oil activities contributed 1.4 pp, government activities 0.1 pp, and net taxes on products 0.2 pp,” GASTAT said.

Momentum accelerated in the fourth quarter, with real GDP expanding 4.9 percent compared to the same period last year. Oil activities surged 10.4 percent, while non-oil sectors grew 4.1 percent. Government activities, however, contracted 1.2 percent in the quarter.

Quarter-on-quarter, seasonally adjusted real GDP rose 1.1 percent. Oil activities grew 1.4 percent, non-oil activities by 1.3 percent, while government activities declined slightly by 0.2 percent.

Earlier projections from the International Monetary Fund and World Bank had anticipated growth of 4 percent in 2025, with forecasts of 4.3–4.4 percent in 2026–2027. Analysts, including Standard Chartered, expect the Kingdom’s GDP to continue outperforming the global average, driven by sustained growth in both hydrocarbon and non-oil sectors.

The performance underscores Saudi Arabia’s economic resilience and diversification efforts, as the country strengthens its position as a regional economic powerhouse.