Saudi Arabia closed 2025 on a strong economic note, with the General Authority for Statistics (GASTAT) confirming that the Kingdom’s real gross domestic product expanded by 5 percent year-on-year in the fourth quarter. The full-year figure came in at 4.5 percent growth compared to 2024, reinforcing the Kingdom’s position as one of the fastest-growing major economies in the region.
Oil and Non-Oil Sectors Both Deliver
The Q4 2025 results reflect broad-based momentum across the economy. Oil activities surged by 10.8 percent year-on-year during the quarter, driven by higher production levels and sustained global energy demand. Non-oil activities, which have been a central pillar of Vision 2030’s diversification strategy, rose by 4.3 percent over the same period. Total value added reached SAR 1.207 trillion in Q4 2025, up from SAR 1.148 trillion in Q4 2024.
On a full-year basis, GASTAT confirmed that oil activities grew by 5.7 percent in 2025, while non-oil private sector growth came in at 4.3 percent. The private sector overall expanded by approximately the same margin, signalling that domestic demand remains robust and that the Kingdom’s reform agenda is gaining real traction on the ground.
Wholesale, Retail, and Services Lead Non-Oil Growth
Among the non-oil activities driving growth, wholesale, retail trade, restaurants and hotels emerged as a standout performer, expanding by 6.2 percent and becoming the leading non-oil contributor to GDP growth for the year. This reflects the surge in consumer spending, an expanding hospitality sector, and the increasing footfall from tourism and Umrah pilgrims.
Saudi Arabia’s GDP at current prices reached SAR 1.21 trillion in Q4 2025, representing a 2 percent increase from the same quarter a year earlier. The private sector at current prices grew by 6.2 percent, underscoring the strength of the domestic economy independent of oil price movements.
A Year of Accelerating Momentum
When viewed against the quarterly trajectory, 2025 was a year of steady acceleration. Growth rates moved from 3.7 percent in Q1 to 4.5 percent in Q2, 4.8 percent in Q3, and 5 percent in Q4. This consistent upward trend reflects disciplined fiscal management, the continued rollout of giga-projects, and a maturing non-oil private sector that is increasingly capable of sustaining growth on its own terms.
GASTAT noted that its data is calculated using the moving chain-weighting methodology, a modern approach that updates price and volume weights annually to more accurately reflect current economic conditions. This makes Saudi Arabia’s GDP reporting more aligned with international standards and improves comparability with other advanced economies.
The full-year 2025 growth figure of 4.5 percent positions Saudi Arabia well above many of its G20 peers and serves as a strong foundation heading into 2026, as major infrastructure investments and the continued development of tourism, entertainment, and technology sectors are expected to sustain the growth trajectory.
