Saudi Arabia’s economy showcased strong economic resilience by posting 3.4% year-on-year real GDP growth in the first quarter of 2025, according to official data released Monday.
The General Authority for Statistics revealed this upward trend stems primarily from exceptional 4.9% expansion in non-oil sectors, significantly outpacing the modest 0.5% contraction in oil-related activities.
Notably, non-oil activities powered this strong Saudi economic growth, expanding by 4.9% year-on-year. Government services also contributed significantly with 3.2% growth. Meanwhile, oil-related activities dipped slightly by 0.5%.
Compared to Q4 2024, seasonally adjusted GDP grew 1.1%. This quarterly growth highlights the economy’s momentum despite global oil market fluctuations. Non-oil sectors added 2.8 percentage points to annual GDP growth.
Furthermore, wholesale and retail trade surged 8.4% annually. The hospitality sector also expanded robustly alongside commercial services. These results confirm Saudi Arabia’s successful economic diversification strategy.
Additionally, government activities contributed 0.5 percentage points to growth. Tax revenues added another 0.2 points, showing balanced fiscal health. Most economic sectors posted positive results across the board.
Economists highlight how this strong economic resilience reflects Vision 2030’s success. The report shows decreasing oil dependence as private sector activity thrives. Construction, logistics and tourism all showed particularly strong performance.
Looking ahead, analysts predict sustained non-oil expansion throughout 2025. The Q1 results suggest Saudi Arabia remains on track for steady growth. Continued diversification should further be strengthening the economic outlook.
With oil prices stabilizing, Saudi Arabia’s balanced growth approach appears effective. The kingdom continues demonstrating its ability to adapt to changing global conditions. These latest figures reinforce its position as a regional economic leader.
Saudi Arabia’s first-quarter economic performance underscores the remarkable success of its diversification strategy under Vision 2030.
The 3.4% GDP growth, led by a robust 4.9% expansion in non-oil sectors, demonstrates the kingdom’s strong economic resilience amid fluctuating oil markets.
