Saudi Arabia GDP increased 3.9 percent in the second quarter, driven mainly by robust non-oil sector performance. This growth continues the Kingdom’s expansion streak to 18 consecutive quarters, reflecting the progress of Vision 2030 reforms aimed at diversifying the economy.
Non-oil activities grew 4.6 percent year-on-year, contributing significantly to overall Saudi Arabia GDP growth. Oil activities rose 3.8 percent, while government services increased 0.6 percent. Quarterly, oil led with a 5.6 percent gain, non-oil advanced 0.8 percent, and government activities declined slightly by 0.8 percent. In total, non-oil sectors contributed 2.6 percentage points to GDP growth, oil added 0.9 points, and net taxes contributed 0.3 points.
Key sectors performed strongly. Electricity, water, and gas expanded 10.3 percent, while finance, insurance, and business services grew 7 percent. Wholesale and retail trade, restaurants, and hotels rose 6.6 percent, reflecting increased domestic consumption and private-sector activity. These sectors further strengthened Saudi Arabia GDP, showing diverse sources of growth.
The International Monetary Fund projected the Kingdom’s economy to grow 3.6 percent this year, accelerating to 3.9 percent next year. Structural reforms, state-led projects, and private-sector initiatives continue to reinforce growth. Consequently, these measures support Saudi Arabia GDP stability while enhancing investor confidence.
Minister of Economy and Planning Faisal Alibrahim highlighted the rising contribution of non-oil sectors, now accounting for over half of total output. He added that diversification, industrial investment, and infrastructure development would sustain long-term economic momentum. Energy, transport, and industrial projects are expected to continue driving growth.
Analysts noted that non-oil growth reflects higher domestic consumption, private-sector expansion, and sound policy implementation. Meanwhile, stable oil production maintains Saudi Arabia GDP resilience despite global market uncertainties. These factors position the Kingdom to meet Vision 2030 objectives and support sustainable economic progress.
Overall, this demonstrates strong non-oil performance, strategic investments, and effective policy reforms. These elements enhance economic diversification and provide confidence in the Kingdom’s financial stability.
