Saudi Arabia sees stronger growth, pegs 2025 GDP at 4.5%

Saudi Arabia has revised its estimate of economic growth for 2025 upwards, signalling stronger than expected performance despite softer oil prices.

Saudi Arabia has revised its estimate of economic growth for 2025 upwards, signalling stronger than expected performance despite softer oil prices.

In a flash reading released on Sunday, February 1st, 2026, the General Authority for Statistics said the Kingdom’s economy expanded by 4.5 per cent last year, exceeding the International Monetary Fund’s earlier forecast of 4.3 per cent. The revised figure is also slightly higher than the government’s own projection of 4.4 per cent outlined in its preliminary 2026 budget statement released in December.

Growth was led by oil activities, which expanded by 5.6 per cent in 2025, followed by non-oil sectors at 4.9 per cent and government activities at 0.9 per cent, GASTAT said.

Officials noted that the non-oil economy now contributes more than half of Saudi Arabia’s GDP, reflecting the impact of the Kingdom’s economic diversification drive under Vision 2030. The government aims for 50 per cent of exports to originate from non-oil sectors by the end of the decade.

In November, non-oil exports were valued at SAR19 billion ($5 billion), while oil exports stood at SAR67 billion, according to GASTAT data.

Meanwhile, the government and the $930 billion Public Investment Fund are reprioritising major investment projects amid weaker global oil prices, focusing on sustaining growth while accelerating private sector participation.

Leave a comment

Your email address will not be published. Required fields are marked *