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Saudi Arabia Posts Fastest Growth Since 2023, Powered by Oil and Non-Oil Gains

Prime Highlights: 

  • Saudi Arabia recorded a strong 5% economic growth in the third quarter of 2025, reflecting solid performance across oil and non-oil sectors. 
  • The growth highlights the progress of Vision 2030, aimed at diversifying the Kingdom’s economy and reducing dependence on oil. 

Key Facts: 

  • Oil activities increased by 8.2%, non-oil sectors grew 4.5%, and government services rose 1.8% during the period. 
  • This marks Saudi Arabia’s fastest economic growth since early 2023, when GDP expanded by 5.7%. 

Background: 

Saudi Arabia’s economy grew 5 percent in the third quarter of 2025, driven by strong oil and non-oil growth, according to GASTAT. Oil activities rose 8.2 percent, non-oil sectors 4.5 percent and government services 1.8 percent. It’s the fastest growth since early 2023. 

The rise reflects progress under Vision 2030, which aims to diversify the economy and reduce oil dependence. Officials said the steady rise in non-oil sectors will help maintain long-term growth. 

At the Future Investment Initiative in Riyadh, Minister of Economy and Planning Faisal Alibrahim said Saudi Arabia’s GDP is expected to grow by 5.1 percent in 2025, supported by continued expansion in non-oil industries and new investments. 

According to GASTAT, non-oil activities contributed 2.6 percentage points to the total GDP increase, while oil activities added 2 percentage points. Government activities and net taxes each contributed 0.2 percentage points. On a quarterly basis, Saudi Arabia’s seasonally adjusted GDP rose 1.4 percent compared to the previous three months. Oil output rose by 3.1 percent in the third quarter, while non-oil activities grew by 0.6 percent and government services by 0.7 percent. 

The report said oil was the main driver of quarterly growth, adding 0.8 percentage points, followed by non-oil sectors, which contributed 0.4 percentage points. 

Earlier this month, the World Bank revised its forecast for Saudi Arabia’s 2025 economic growth to 3.2 percent, up from 2.8 percent projected in April, citing stronger oil output and resilient non-oil activity. Similarly, the OECD raised its 2026 GDP growth estimate for the Kingdom to 3.9 percent from 2.5 percent previously. 

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