Saudi Arabia’s economy posts robust real growth of 4.8% in the third quarter of 2025. Non-Oil Growth drives led the expansion, reflecting the Kingdom’s sustained economic momentum. Furthermore, seasonally adjusted real GDP rose 1.4% from the second quarter.
According to the General Authority for Statistics (GASTAT), the annual growth was slightly below the 5% flash estimate released in October. Nevertheless, it represents the strongest quarterly performance recorded in 2025. Experts say Non-Oil Growth underpinned half of the total expansion.
Non-oil activities added 2.4 percentage points, or 50% of the total 4.8% increase. Meanwhile, oil activities contributed 2.0 percentage points. GASTAT revised non-oil growth slightly downward to 4.3%, while oil-sector growth rose marginally to 8.3%.
This growth coincided with the gradual ramp-up in oil production following the expiration of voluntary OPEC+ cuts at the end of August. Saudi Arabia increased output by 547,000 barrels per day starting in September, and added another 137,000 barrels per day from November onward.
In addition, government activities and net taxes on products each contributed 0.2 percentage points. On a quarterly basis, oil added 0.8 points, while non-oil activities added 0.3 points. These figures highlight balanced contributions across sectors.
All economic sectors recorded positive annual growth. Oil refining led the gains, rising 11.9% year-on-year and 3.9% quarter-on-quarter. Crude oil and natural gas followed, up 7.3% annually and 3.2% quarterly. Electricity, gas, and water services grew 6.4% annually and 1.0% quarterly.
From the expenditure perspective, performance varied. Private final consumption rose 2.6% annually, but slipped 0.6% from the previous quarter. Conversely, government final consumption fell 3.1% year-on-year, yet increased 1.4% quarterly.
Gross fixed capital formation declined 0.7% year-on-year. However, it rebounded strongly on a quarterly basis with a 6.2% increase, signaling renewed investment momentum. Meanwhile, foreign trade performance improved. Exports surged 18.4% annually and 7.5% quarterly, reflecting strong external demand. Imports rose 4.3% year-on-year, but edged down 1.2% quarterly.
Analysts emphasize that Non-Oil Growth drives continues to be a key driver for Saudi Arabia’s economic stability. They note that diversification, investment in non-oil sectors, and global demand will support sustainable expansion into 2026.
