Saudi Gazette report

RIYADH — Saudi Arabia’s real gross domestic product (GDP) recorded a 3.9% growth in the second quarter of 2025 compared to the same period last year, according to flash estimates released by the General Authority for Statistics (GASTAT).

The increase reflects positive growth across all major economic sectors.

Non-oil activities posted an annual growth rate of 4.7%, reinforcing the Kingdom’s ongoing economic diversification.

Meanwhile, oil activities expanded by 3.8%, underlining the continued strength of the energy sector. Government activities grew by a modest 0.6% year-on-year.

In terms of contributions to seasonally adjusted real GDP growth, oil activities led with 1.3 percentage points, followed by non-oil activities with 0.9 points.

However, both government activities and net taxes on products subtracted 0.1 points each.

When analyzing contributions to total real GDP growth, non-oil activities emerged as the primary driver, contributing 2.7 percentage points.

Oil activities added 0.9 points, while government activities and net taxes contributed 0.1 and 0.2 points, respectively.

The data highlights the resilience and adaptability of the Saudi economy, which continues to grow from multiple sources with an increasing focus on reducing oil dependency.

The International Monetary Fund recently revised its forecast for Saudi Arabia’s economic growth in 2025 and 2026, citing higher expected oil revenues and accelerating non-oil growth.

The IMF now projects 2025 GDP growth at 3.6%, up 0.6 percentage points from its April estimate. For 2026, growth is expected at 3.9%, up from the earlier forecast of 3.7%.