Saudi Arabia Sees 3.9% Economic Growth Led by Non-Oil Sectors

Saudi Arabia’s GDP expanded by 3.9% in the second quarter of 2025, with non-oil sectors leading the growth at 4.6% year-on-year, according to official data.

Electricity, gas, and water recorded the highest growth rates, followed by finance, insurance, and business activities. Oil activities also gained momentum, climbing 5.6% from Q1, as Saudi-led OPEC+ agreed to a modest October production increase of 137,000 barrels per day — significantly lower than the monthly hikes of 555,000 barrels in August and September and 411,000 barrels in July and June.

Oil prices remain down about 15% since January but are still hovering near USD 65 a barrel.

Despite the quarterly expansion, Saudi Arabia faces continued pressure from weaker oil prices, which remain below the IMF’s estimated USD 90 per barrel fiscal breakeven. The Kingdom continues to advance its Vision 2030 economic diversification strategy, directing significant investments into tourism, entertainment, and sports. Its 2025 fiscal deficit is projected at SAR 101 billion (USD 27 billion).