Saudi Arabia’s GDP Growth in Early 2025
In the first quarter of 2025, Saudi Arabia experienced a 3.4% increase in its real gross domestic product (GDP) compared to the same timeframe in 2024, as reported by the General Authority for Statistics (GASTAT).
The main drivers behind this growth were a 4.9% rise in non-oil activities and a 3.2% increase in governmental operations. However, there was a minor decline in oil-related activities, which fell by 0.5% year-on-year.
On a seasonally adjusted basis, the real GDP showed a growth of 1.1% when compared to the last quarter of 2024.
Non-Oil Sectors Fuel Economic Expansion
GASTAT emphasized that the expansion in GDP was largely fueled by non-oil sectors, contributing 2.8 percentage points to the overall growth. Government operations added 0.5 percentage points, while net product taxes contributed an additional 0.2 percentage points.
The report also indicated a widespread economic upturn, with most sectors showing positive growth over the year. The sectors of wholesale and retail trade, coupled with restaurants and hotels, exhibited the most significant annual growth, increasing by 8.4% from the previous year and 0.7% from the previous quarter.