Saudi Economy Grows 3.9% in Q2, Led by Non-Oil Sector
Saudi Arabia’s economy grew by 3.9% in the second quarter of 2025, mainly because of strong performance in non-oil sectors, according to the Saudi Press Agency.
Growth in Key Sectors
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Non-oil activities grew the most, up 4.6%.
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Oil activities rose 3.8%.
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Government activities increased slightly by 0.6%.
Non-oil sectors were the main driver, adding 2.6% to overall growth. Oil activities added 0.9%, while product taxes added 0.3%.
The fastest-growing industries were:
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Electricity, gas, and water (up 10.3%)
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Finance, insurance, and business services (up 7%)
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Wholesale, retail trade, restaurants, and hotels (up 6.6%)
Compared to the first quarter, the economy grew 1.7%, with oil activities contributing 1.3% and non-oil activities 0.4%.
Non-Oil Sector Performance
Saudi Arabia’s non-oil private sector also improved in August. The Riyad Bank PMI rose slightly to 56.4 from 56.3 in July, showing steady growth.
The improvement was driven by:
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Higher demand
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A small rebound in output
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More hiring
Export orders also picked up, supported by stronger marketing and partnerships in the GCC region.
Outlook
The IMF raised its 2025 growth forecast for Saudi Arabia to 3.5% (up from 3%), citing government projects and the OPEC+ plan to gradually reduce oil production cuts.
Published: 10th September 2025
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