Saudi Arabia's economy expanded in the first quarter of 2026, with real GDP growing 3.0% year-on-year, driven largely by momentum in the private sector and non-oil industries.
Non-oil activities grew by 2.9% during the quarter, contributing 1.7 percentage points to overall real GDP growth. Financial and insurance activities together with business services recorded the strongest expansion at 5.4%, while manufacturing excluding oil refining rose by 4.0%.
Investment appetite also remained strong. Private non-oil investment increased by 7.3% in 2025 and accounted for roughly 76% of total fixed capital formation, underlining the growing role of private businesses in the economy. In Q1 2026, the Kingdom issued 7,742 investment licenses, a 68% jump compared with the same period a year earlier. Construction, wholesale and retail, and manufacturing together made up about 65% of those licenses.
Looking ahead, non-oil activity growth is projected at 3.2% for the full year 2026.
Why it matters
The figures point to a broadening economic base beyond oil, in line with the goals of رؤية السعودية 2030. For residents and expats across الرياض, جدة and other cities, stronger private-sector activity and a surge in new business licenses typically mean more jobs, more services, and expanding opportunities in sectors such as retail, construction, manufacturing, and financial services.
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