Official data reported that the actual gross domestic product of Saudi Arabia increased by 4.5 percent year-on-year in 2025, with robust growth in both the oil and non-energy sectors.
As per flash estimates issued by the General Authority of Statistics in Saudi Arabia, the oil activities in the Kingdom increased by 5.6 percent as compared to the previous year, whereas non-oil activities and government activities increased by 4.9 percent and 0.9 percent, respectively.
The most recent report is in line with an outlook made by the International Monetary Fund in October, which projected that Saudi Arabia would experience a GDP increase of 4 percent by 2025 and 2026.
The World Bank predicted that the GDP of the Kingdom is expected to grow by 4.3 percent in 2026 and 4.4 percent in 2027, compared to an estimated 3.8 percent in 2025.
GASTAT reported, “The main driver of real GDP growth in 2025 was non-oil activities, which contributed 2.7 percentage points, while oil activities with 1.4 pp, government activities at 0.1 pp, and net taxes on products at 0.2 pp, also contributed positively.”
However, the momentum increased in the direction of the end of the year. In the fourth quarter, real GDP grew 4.9 percent compared to the same period a year prior, with oil activities rising 10.4 percent and non-oil sectors increasing 4.1 percent. The government activities shrank at an annual rate of 1.2 percent in the quarter.
The authority stated, “The main driver of growth in real GDP of the fourth quarter of 2025 was oil activities, which contributed 2.5 pp, non-oil activities contributed 2.3 pp, and net taxes on products contributed 0.2 pp, while government activities had a negative contribution of 0.2 pp.”
The real GDP of Saudi Arabia, adjusting to seasonality, has seen growth of 1.1 percent in the fourth quarter of 2025 as compared to the past three months.
The oil activities experienced quarter-on-quarter growth of 1.4 percent in the fourth quarter, whereas the increase in the non-oil activities was 1.3 percent in the fourth quarter. The government activities reached a decline of 0.2 percent in the fourth quarter compared to the previous three months.
Earlier this month, another study by Standard Chartered indicated that the GDP of the Kingdom is projected to grow by 4.5 percent in 2026, compared to the global growth rate of 3.4 percent, due to the continued growth in both the hydrocarbon and the non-oil sectors.
