Saudi Economy Grows 4.5% in 2025, 5% in Q4

Saudi Arabia's real gross domestic product grew 4.5% in 2025 compared with the previous year, reflecting continued momentum across the Kingdom's economy. Growth accelerated in the final months of the year, with real GDP rising 5.0% year-on-year in the fourth quarter of 2025.

On a seasonally adjusted basis, the economy expanded 1.4% in the fourth quarter of 2025 compared with the third quarter, pointing to steady quarter-on-quarter improvement heading into the new year.

The pace shifted in the following period. Real GDP grew 3.0% year-on-year in the first quarter of 2026, with oil and non-oil activities each rising 2.9% and government activities up 1.5%. On a seasonally adjusted basis, GDP eased 1.2% in the first quarter of 2026 compared with the previous quarter. In the second quarter of 2026, real GDP declined 4.7% year-on-year.

Why it matters

Economic growth affects jobs, business activity and everyday costs for residents and expats alike. The 2026 national budget projected around 4.6% real GDP growth for the year, driven primarily by non-oil activities — a key measure of progress under the Kingdom's long-term diversification goals.

It is worth noting that a comprehensive update to GDP data was carried out in September 2026, which means some historical growth figures may be revised as the new methodology is applied. Saudi Living will continue to track the Kingdom's economic indicators and their impact on the community.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving