RIYADH: According to official figures, Saudi Arabia’s GDP grew by 3.9 percent year over year in the second quarter of 2025, driven mostly by robust non-oil industries. The General Authority for Statistics’ flash estimates show that non-oil activity growth was 4.7 percent, which was higher than the oil sector’s 3.8 percent expansion and the government services sector’s 0.6 percent increase. With an addition of 2.7 percentage points, the non-oil sector made the highest contribution to GDP growth, followed by oil operations at 0.9 percentage points.
Contributions to the total expansion from government operations and net product taxes were 0.1 and 0.2 percentage points, respectively. The information is consistent with S&P Global Ratings’ macroeconomic projection, which predicts that Saudi Arabia’s real GDP would expand at an average pace of 3.5 percent between 2025 and 2028, outpacing the 0.8 percent growth observed in 2024. According to GASTAT’s quarterly report, “seasonally adjusted real GDP increased 2.1 percent in Q2/2025, compared to the previous quarter Q1/2025.”
The biggest spike in oil activity since Q3 2021—up 5.6% this quarter—was the cause of this surge. While government operations saw a decline of 0.8 percent, non-oil activity increased by 1.6 percent, the report continued. According to GASTAT, non-oil sectors contributed 0.9 percentage points to the quarterly increase, while oil activities contributed 1.3 percentage points. However, there was a 0.1 percentage point decline in both government operations and net product taxes.
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