The economy of Saudi Arabia is growing, as the World Bank has lifted its 2025 forecast to 3.2 percent. This reflects stronger oil production and expanding non-oil industries, signaling renewed strength in the Kingdom’s economy.
Saudi Arabia’s economy grew 3.9 percent in the first half of 2025. In addition to higher oil output, robust services also fueled this increase. Consequently, growth is expected to reach 4.3% in 2026 and 4.4% in 2027.
Both energy and non-energy sectors are driving the expansion. For example, oil production has steadily increased with global demand. Meanwhile, tourism, finance, and logistics are performing strongly. Therefore, the 2025 forecast marks a notable jump from the 2 percent growth recorded in 2024.
Moreover, other global institutions have revised their estimates. The IMF predicted similar gains in July. Likewise, the OECD raised its 2026 projection to 3.9 percent. These revisions further highlight growing confidence in the Kingdom’s economic momentum.
Regional growth is also improving. Specifically, the World Bank expects the Middle East to expand 2.8 percent in 2025. Similarly, GCC countries are projected to grow 3.5 percent this year and rise to 4.4 percent in 2026. In addition, oil-importing countries benefit from stronger investment, rising consumer spending, and recovery in tourism and agriculture.
Saudi tourism is thriving. For instance, the Saudi Summer program welcomed over 32 million visitors, up 26 percent from 2024. Furthermore, tourist spending reached SR53.2 billion, a 15 percent increase. At the same time, inflation remains stable at 2.3 percent in 2025 and 2.2 percent in 2026.
Labor participation is also a major driver of future growth. Saudi Arabia is steadily increasing women’s workforce involvement. Finance Minister Mohammed Al-Jadaan aims for 40 percent female participation by 2030, exceeding the previous 30 percent target. Between 2017 and 2023, women’s participation rose nearly 14 percentage points.
The World Bank added that these gains boost productivity and reduce inequality. As a result, economists view them as crucial for sustaining long-term economic momentum.
Looking ahead, the outlook remains positive. Rising oil output, diversification, and labor reforms will support steady expansion. Additionally, non-oil industries are expected to grow, keeping the economy resilient. Overall, the World Bank’s upgrade underscores strong confidence in Saudi Arabia’s future growth and progress toward Vision 2030.
