Saudi Arabia’s economy expanded by 3.4 per cent year on year in the first quarter of 2025, propelled by robust growth in non-oil activities, according to official data.
The estimates released by the General Authority for Statistics showed that the seasonally adjusted real gross domestic product also saw a quarterly rise of 1.1pc, signalling sustained economic momentum.
The non-oil sector emerged as the primary engine of growth, increasing by 4.9pc compared to the first quarter of 2024. In contrast, oil activities contracted by 0.5pc year on year, reflecting ongoing volatility in the energy sector.
Saudi Arabia’s GDP growth aligns with the broader Middle East trend, where countries are steadily advancing economic diversification.
The UAE’s Ministry of Economy forecasts a 5-6pc growth rate in 2025, fuelled by robust performance in key sectors such as technology, renewable energy, trade, financial services, and infrastructure.
Meanwhile, Fitch Ratings has lowered Qatar’s 2025 real GDP growth forecast from 2.9pc to 2.6pc, citing the effects of US tariffs on global growth, weaker energy prices, and heightened investor caution amid rising international uncertainty.
In a release covering the latest Saudi Arabia figures, GASTAT stated: “The main driver of growth in real GDP was non-oil activities, which contributed 2.8pcage points. Government activities and net taxes on products also contributed positively adding 0.5 and 0.2 PP respectively.”
According to the GASTAT report, several non-oil sectors posted strong growth across the quarter, with the wholesale and retail trade, restaurants, and hotels sector leading at an 8.4pc annual increase.
The transport, storage, and communication sector also showed robust performance, growing by 6pc year on year.
Meanwhile, finance, insurance, and business services expanded by 5.5pc despite experiencing a slight 0.1pc quarterly dip.
These gains highlight the diversification and resilience of the economy beyond the oil industry.
Gross fixed capital formation jumped by 8.5pc annually, underscoring confidence in the economy, while government spending rose by 5.2pc. Private consumption grew by 4.5pc year on year, though it declined slightly from the previous quarter.
&uuid=(email))