Saudi Arabia's real GDP increased by 3.9% in the second quarter of 2025, with significant growth across non-oil and oil sectors, according to official estimates.

In a notable economic development, Saudi Arabia has achieved a real gross domestic product (GDP) growth rate of 3.9% during the second quarter of 2025 compared to the same period last year. This data, gleaned from flash estimates provided by the General Authority for Statistics (GASTAT), highlights a broad-based expansion across key sectors.

The robust performance is largely attributed to non-oil activities, which saw an impressive annual growth rate of 4.7%. This underscores the Kingdom’s strategic commitment to diversifying its economy beyond oil dependence.

Oil-related activities also posted a strong showing with a 3.8% increase, illustrating the persistent vigor of Saudi Arabia’s cornerstone energy sector. Meanwhile, government activities experienced a more modest rise of 0.6% on an annual basis.

From a seasonally adjusted perspective, oil activities made the largest contribution to real GDP growth at 1.3 percentage points, followed by non-oil sectors contributing 0.9 points. In contrast, government functions and net taxes on products each slightly reduced growth by subtracting 0.1 points.

A deeper dive into contributions reveals that non-oil sectors were pivotal drivers of total real GDP growth, adding significantly with a contribution of 2.7 percentage points. Oil activities further enhanced this figure with an additional contribution of 0.9 points; government functions and net taxes added marginally with contributions of 0.1 and 0.2 points respectively.

This diversification-driven economic momentum showcases Saudi Arabia's resilience and adaptability in building a multifaceted economy while strategically reducing reliance on oil revenue streams.

The International Monetary Fund recently revised its projections upwards for Saudi economic growth through both 2025 and beyond into 2026 due to anticipated increases in oil revenues coupled with robust non-oil sector performance.

Specifically, the IMF now foresees Saudi Arabia’s GDP climbing by another 3.6% in all of next year-an upward adjustment from prior predictions-and maintaining strong progress into subsequent years as well.