Saudi Arabia’s Economy Grows 4.5% in 2025, Fueled by Dual Oil and Non-Oil Expansion

Strong performance in both sectors signals robust momentum for Vision 2030, with non-oil activities driving nearly two-thirds of annual growth.

RIYADH – Saudi Arabia’s economy grew by 4.5% in 2025, powered by significant gains in both oil and non-oil sectors, according to flash estimates released by the General Authority for Statistics (GASTAT).

The data underscores the Kingdom’s accelerating diversification efforts under Vision 2030, with non-oil activities rising by 4.9% and contributing 2.7 percentage points to overall GDP growth. Oil activities expanded by 5.6%, contributing 1.4 percentage points. Government services grew modestly at 0.9% for the year.

“The main driver of real GDP growth in 2025 was non-oil activities, which contributed 2.7 percentage points,” GASTAT noted in its report.

Growth gained momentum toward year-end, with fourth-quarter real GDP climbing 4.9% year-on-year. Quarterly expansion was led by a sharp 10.4% rise in oil activities, while non-oil sectors maintained a solid 4.1% growth. Government activities contracted by 1.2% in the same quarter.

On a seasonally adjusted basis, the economy expanded by 1.1% in Q4 compared to Q3, with both oil and non-oil sectors advancing.

The strong figures align with recent forecasts from the International Monetary Fund and World Bank, both of which project continued growth above 4% through 2026–2027, outpacing much of the global economy.

A recent Standard Chartered analysis highlighted Saudi Arabia’s expected 2026 GDP growth of 4.5%, significantly above the projected global average of 3.4%, supported by sustained investments in diversification and energy sector stability.