Saudi Arabia’s Economy Grows 5% in Q3 2025 as Oil and Non-Oil Sectors Expand
Saudi Arabia’s economy grew by 5% in the third quarter of 2025 compared to the same period last year. The growth came from all major sectors, especially oil, which rose as OPEC+ slowly reduced production limits.
Key Growth Numbers
According to early estimates from the General Authority for Statistics (GASTAT):
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Oil activities grew the most — up 8.2%.
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Non-oil activities rose 4.5%.
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Government activities increased 1.8%.
Non-oil sectors were the biggest contributor to overall growth, adding 2.6 percentage points to GDP. Oil activities added 2 points, while government and tax-related activities each added 0.2 points.
Compared to the second quarter, the economy grew 1.4% on a seasonally adjusted basis.
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Oil added 0.8 points,
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Non-oil added 0.4 points,
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Government and taxes each added 0.1 points.
Sector-wise quarterly growth:
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Oil activities: up 3.1%
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Non-oil activities: up 0.6%
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Government activities: up 0.7%
Why the Growth
Analysts say the easing of OPEC+ production cuts helped boost oil output. The group, which includes Saudi Arabia and Russia, began relaxing production limits in April after years of lower output meant to keep prices stable.
Economic Diversification
Saudi Arabia, one of the world’s largest oil exporters, continues to push its Vision 2030 plan under Crown Prince Mohammed bin Salman. The goal is to grow non-oil sectors, attract investment, and reduce dependence on oil.
Economy Minister Faisal Alibrahim said the country is steadily restructuring its economy for the long term.
Saudi Arabia has invested around $8 billion in new solar and wind projects with a total capacity of 15,000 megawatts, part of efforts to grow renewable energy.
The kingdom is also focusing on artificial intelligence (AI), putting large investments into data centers, digital infrastructure, and AI startups.
What’s Next
The Ministry of Finance expects Saudi Arabia’s real GDP to grow 4.4% in 2025, up from 2% in 2024, led by the non-oil sector.
The International Monetary Fund (IMF) also raised its 2025 forecast to 4%, citing higher oil production.
Published: 31th October 2025
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