Saudi Arabia’s economy expanded by 3.4% in real terms during the first quarter of 2025 compared to the same period last year, driven by a 4.9% rise in non‑oil activity and 3.2% growth in government services, according to updated data from the General Authority for Statistics (GASTAT). Oil‑sector output contracted 0.5%, offsetting some gains, while seasonally adjusted real GDP rose 1.1% from Q4 2024.
Non‑oil industries contributed 2.8 percentage points to annual growth, with government interventions and net taxes adding 0.5 and 0.2 points, respectively. The strongest annual growth within non‑oil sectors was seen in wholesale and retail trade, restaurants, and hotels, up 8.4%. While these sectors also posted modest quarterly gains of 0.7%.
Although the oil sector’s decline indicates lingering volatility, the sustained growth in non-oil segments marks a structural shift driven by consumer demand, government investment, and state-led diversification policies. The result aligns with recent IMF forecasts, which project around 3% growth for 2025, and highlights the broader regional pivot toward services, trade, and private-sector expansion.
