Saudi Arabia’s economy expanded 3.9 per cent in the second quarter of the year, fuelled by robust non-oil activity that extended its growth streak to 18 consecutive quarters, official data showed, reports Arab News.
The kingdom’s non-oil activities grew by 4.6pc year on year in the April–June period, underlining the progress of Vision 2030 reforms aimed at diversifying the economy away from oil dependence, according to estimates from the General Authority for Statistics (GASTAT).
The latest gross domestic product figures align with projections from the International Monetary Fund, which in August forecast the Saudi economy to expand by 3.6pc this year before accelerating to 3.9pc in 2026.
“Real GDP grew 3.9pc in the second quarter of 2025 compared to the same quarter of 2024, while seasonally adjusted real GDP rose by 1.7pc compared to the first quarter of 2025,” GASTAT said in its latest report.
“All main economic activities increased year-on-year, with non-oil up 4.6pc, oil up 3.8pc, and government up 0.6pc,” it added.
Quarterly, oil activities led the expansion with a 5.6pc increase, while non-oil advanced 0.8pc and government activities slipped 0.8pc.
The authority said non-oil sectors contributed 2.6pcage points to overall GDP growth, followed by oil at 0.9 points, and net taxes on products at 0.3 points.
Among individual sectors, electricity, water and gas activities expanded 10.3pc year on year in the second quarter, while finance, insurance and business services grew 7pc. Wholesale and retail trade, along with restaurants and hotels, rose 6.6pc.
In May, GASTAT reported that the economy grew 2.7pc year on year in the first quarter, also driven by strong non-oil momentum.
Commenting on the first quarter performance at the time, Minister of Economy and Planning Faisal Alibrahim, who chairs GASTAT’s board, said non-oil activities accounted for 53.2pc of economic output, an increase of 5.7pc from previous estimates.
He added that Saudi Arabia’s outlook remains positive, supported by structural reforms and large-scale state-led projects across multiple sectors.
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