- Oil activities led the expansion with a 5.6% increase
- Non-oil sectors contributed 2.6 percentage points to overall GDP growth
RIYADH: Saudi Arabia’s economy expanded 3.9 percent in the second quarter of the year, fueled by robust non-oil activity that extended its growth streak to 18 consecutive quarters, official data showed.
The Kingdom’s non-oil activities grew by 4.6 percent 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.
The latest gross domestic product figures align with projections from the International Monetary Fund, which in August forecast the Saudi economy to expand by 3.6 percent this year before accelerating to 3.9 percent in 2026.
“Real GDP grew 3.9 percent in the second quarter of 2025 compared to the same quarter of 2024, while seasonally adjusted real GDP rose by 1.7 percent 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 4.6 percent, oil up 3.8 percent, and government up 0.6 percent,” it added.
Quarterly, oil activities led the expansion with a 5.6 percent increase, while non-oil advanced 0.8 percent and government activities slipped 0.8 percent.
The authority said non-oil sectors contributed 2.6 percentage 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 10.3 percent year on year in the second quarter, while finance, insurance and business services grew 7 percent. Wholesale and retail trade, along with restaurants and hotels, rose 6.6 percent.
In May, GASTAT reported that the economy grew 2.7 percent 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 53.2 percent of economic output, an increase of 5.7 percent 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.
Source: www.arabnews.com