Saudi Arabia’s economy grew by 3.9% in the second quarter of 2025 compared to the same period a year earlier, according to flash estimates released by the General Authority for Statistics.
The non-oil sector, a key pillar of the kingdom’s economic diversification drive, expanded by 4.7% year-on-year, underscoring continued progress in reducing reliance on hydrocarbons.
Oil activities also posted solid gains, rising by 3.8% on an annual basis, reflecting the resilience of the energy sector despite global market uncertainties.
Government activities grew modestly by 0.6% over the same period.
Oil activities made the largest contribution to quarterly real GDP growth, adding 1.3 percentage points, followed by non-oil activities, which contributed 0.9 percentage points. Government activities and net taxes on products each trimmed growth by 0.1 percentage points.
However, when measured annually, non-oil activities emerged as the main growth engine, contributing 2.7 percentage points to the overall GDP increase. Oil activities accounted for 0.9 points, while government activities and net taxes added 0.1 and 0.2 points, respectively.
The figures highlight the resilience of the Saudi economy and its growing ability to generate momentum from multiple sources, as authorities push ahead with Vision 2030 reforms aimed at reducing dependence on oil revenues.
The International Monetary Fund (IMF) recently revised up its growth forecast for Saudi Arabia, projecting the economy will expand by 3.6% in 2025 — 0.6 percentage points higher than its April estimate — buoyed by stronger oil receipts and accelerating non-oil activity. The Fund also raised its 2026 forecast to 3.9%, from a previous estimate of 3.7%.
