Saudi Arabia’s economy expanded by 4.5% in 2025, supported by growth across oil, non-oil, and government activities, as higher crude production and steady domestic demand boosted overall performance.

Data from the General Authority for Statistics showed that real gross domestic product grew 5% year on year in the fourth quarter, capping a year in which oil activities increased by 5.7% and non-oil sectors rose by 4.9%. Government activities also recorded a modest 0.9% increase compared with the previous year.

The data comes as Saudi Arabia’s non-oil exports reached their highest quarterly level on record, rising to $25.9 billion in the fourth quarter of 2025. The figure represents a 114% increase compared with the first quarter of 2017, when the Kingdom began publishing the data.

The increase in non-oil exports reflects progress under Saudi Vision 2030, which aims to reduce reliance on crude oil revenues and raise the contribution of non-oil exports to non-oil GDP to 50% by the end of the decade.

“The main drivers of growth in real GDP in 2025 were non-oil activities, which contributed 2.8 percentage points, and oil activities, which contributed 1.4 percentage points. Government activities and net taxes on products contributed 0.1 and 0.2 percentage points, respectively,” GASTAT said.

The stronger performance in 2025 follows revised projections from the International Monetary Fund, which in January raised its forecast for Saudi Arabia’s economic growth in 2026 to 4.5% from 4%, while estimating that the economy expanded by 4.3% in 2025.

The World Bank expects the Kingdom’s GDP to grow by 4.3% in 2026, following an estimated growth of 3.8% in 2025.

Within the non-oil economy, several sectors recorded notable gains. Wholesale and retail trade, restaurants, and hotels led the expansion with a growth of 6.2%. Financial services, insurance, and business services followed closely, rising by 6.1%, while electricity, gas, and water activities increased by 6%.

Oil sector activities also expanded. Crude petroleum and natural gas extraction grew by 5.7%, while petroleum refining rose by 5.8%.

Crude petroleum and natural gas extraction remained the largest contributor to the economy, accounting for 17.1% of GDP at current prices. Government activities ranked second, followed by the wholesale and retail trade sector.

Economic momentum strengthened in the fourth quarter of 2025, when GDP expanded by 5% year on year. Oil activities rose sharply by 10.8% during the period, while non-oil activities continued to grow at a steady pace of 4.3%.

On a seasonally adjusted quarter-on-quarter basis, the economy grew by 1.4%, led by non-oil activities at 1.7% and oil activities at 1.8%, while government activities contracted slightly by 0.2%.

By expenditure, exports rose 12.8% year on year, and private consumption increased by 3.6%, while government consumption declined by 8.5% compared with the same period in 2024.

The oil sector was the largest contributor to quarterly growth, adding 2.6 percentage points to the 5% total. Non-oil activities contributed 2.4 percentage points, and net taxes on products added 0.2 percentage points, while government activities reduced growth by 0.2 percentage points.