The IMF raised Saudi growth forecasts for 2025 and 2026, highlighting the Kingdom’s accelerating economic momentum. As a result, the fund now predicts 4 percent annual growth for both years, up from 3.6 percent in its previous 2025 projection.
Consequently, analysts say the revised forecast strengthens the Kingdom’s influence across the region. Moreover, many experts expect ongoing reforms and strategic investments to continue driving robust economic expansion. Therefore, Saudi Arabia will reinforce its position as a regional growth leader.
In October, the IMF released its World Economic Outlook and highlighted notable improvements across the Gulf Cooperation Council. Rising oil revenues and economic diversification support the upgraded projections. Analysts anticipate inflation to reach 2.1 percent in 2025 and slightly drop to 2 percent in 2026. Additionally, domestic reforms and foreign investment continue fueling the Kingdom’s economic progress. As a result, Saudi Arabia’s performance will shape broader Middle East economic trends.
Regionally, the Middle East and North Africa will grow 3.3 percent in 2025 and climb to 3.7 percent in 2026. For example, the UAE could expand by 4.8 percent this year and reach 5 percent next year. Similarly, Qatar’s economy may accelerate from 2.9 percent to 6.1 percent over the same period. Meanwhile, Kuwait is likely to rebound with 2.6 percent growth in 2025, while Oman and Bahrain will each grow 2.9 percent. These developments reflect rising investment, dynamic trade activity, and active economic planning across the region.
Globally, economists project overall growth of 3.2 percent in 2025 and 3.1 percent in 2026. Private sector agility and newly negotiated trade deals drive this positive outlook. The US may grow 2 percent in 2025 and 2.1 percent next year. In contrast, India leads emerging markets with 6.6 percent growth in 2025 and 6.2 percent in 2026. Meanwhile, China will expand 4.8 percent this year and 4.2 percent next year, keeping global trade vibrant and active.
Economists emphasize that the strong forecast will attract additional foreign investment and energize the economy. In addition, officials continue promoting reforms and actively support private sector initiatives. Moreover, experts stress that maintaining fiscal stability remains essential for long-term success. Strategic development plans aim to strengthen growth even further, creating new opportunities for businesses and citizens alike. Consequently, Saudi Arabia continues asserting itself as a leading economic power in the region.
