Prime Highlights
- Saudi Arabia recorded strong economic growth in 2025, driven by solid performance in both oil and non-oil sectors.
- The steady expansion reflects continued progress in economic diversification and sustained energy sector strength.
Key Facts
- Real GDP increased by 4.5 percent in 2025, according to the General Authority for Statistics (GASTAT).
- In the fourth quarter of 2025, the economy grew 4.9 percent year on year, supported by higher oil and non-oil activity.
Background:
Saudi Arabia’s economy grew strongly in 2025, with real GDP increasing by 4.5 percent compared to the previous year, according to the General Authority for Statistics (GASTAT).
GASTAT said non-oil sectors made the biggest contribution to overall economic growth in 2025, adding 2.7 percentage points to GDP growth. Oil activities contributed 1.4 percentage points, while government activities and net taxes on products also added modestly to the overall expansion.
Economic growth picked up toward the end of the year. Saudi Arabia’s real GDP grew by 4.9 percent in the fourth quarter of 2025 compared to a year earlier.
The growth was led by the oil sector, which rose by 10.4 percent during the quarter. Non-oil sectors also grew by 4.1 percent. However, government activities fell by 1.2 percent compared to a year earlier.
Quarter-on-quarter data also showed steady progress. Seasonally adjusted real GDP grew by 1.1 percent in the fourth quarter compared to the previous three months. Oil activities expanded by 1.4 percent, while non-oil activities rose by 1.3 percent. Government activities edged down slightly by 0.2 percent over the same period.
The latest data matches forecasts from major international organisations. The International Monetary Fund expects Saudi Arabia’s economy to grow by about 4 percent in both 2025 and 2026, while the World Bank predicts faster growth in the years ahead. Earlier this month, Standard Chartered said Saudi Arabia’s economy is likely to expand by 4.5 percent in 2026, outperforming the global growth average.
The figures reinforce Saudi Arabia’s position as one of the region’s fastest-growing major economies, supported by sustained energy sector strength and expanding non-oil industries under long-term economic reform plans.
