Saudi Arabia’s real gross domestic product grew 3.9% in the second quarter of 2025 compared to the same period a year earlier, driven by a pickup in non-oil and oil sector activity, according to preliminary estimates released by the General Authority for Statistics on Monday.
Non-oil activities posted a 4.7% year-on-year increase, while oil activities expanded 3.8%. Government services rose marginally by 0.6%.
On a seasonally adjusted basis, GDP rose by 2.1% compared to the first quarter of 2025. Oil activity recorded a quarterly increase of 5.6%, making it the largest contributor to growth, followed by non-oil sectors, which expanded 1.6%. Government activity contracted 0.8% over the same period.
The flash estimates are based on partial data compiled shortly after the quarter’s close and will be revised once full datasets become available. The final GDP figures are expected to reflect broader trends in energy production, government expenditure, and private sector output, particularly as the Kingdom pursues its Vision 2030 targets to reduce dependence on hydrocarbons.
According to recent data from OPEC and the Saudi Ministry of Energy, crude production in the second quarter remained stable amid efforts to manage global supply. Meanwhile, non-oil growth was supported by continued activity in construction, financial services, and wholesale trade, in line with recent trends in the PMI and bank credit data.
Saudi Arabia’s full-year GDP contracted by 0.9% in 2023 due to oil output cuts but is projected to rebound in 2025, according to IMF forecasts. The Fund expects the Kingdom to post overall GDP growth of 2.6% this year, with non-oil GDP expanding by over 4%. Final Q2 data from GASTAT is scheduled to be released in the coming months.
