Non-oil industries drive Saudi growth for 5th straight quarter

Expansion of Saudi Arabia’s non-oil economy – highlighted by construction, tourism and entertainment – is fueling a rebound in the kingdom’s finances amid falling petroleum prices.

Gross domestic product is expected to have expanded 3.9% in the second quarter of 2025 compared to the same period last year as Saudi Arabia and other OPEC+ states lifted production limits to stimulate sales.

It was the fifth consecutive quarter of growth for the overall economy after a 3.4% expansion in the first three months of the year, according to the Saudi General Authority of Statistics.

The kingdom’s non-oil economy, which Crown Prince Mohammed bin Salman set as the fulcrum of his Vision 2030 economic blueprint, grew 4.7% in the second quarter.

Meanwhile, oil continued to be the driving force in the economy, with the sector expanding 3.8%.

The Saudi economic rebound was reflected in the International Monetary Fund’s decision on Wednesday to raise its GDP forecast for this year to 3.5%, revised from its earlier prediction of 3%.

The kingdom “has demonstrated strong resilience to shocks, with non-oil economic activities expanding, inflation contained, and unemployment reaching record-low levels,” the IMF said.