Saudi Arabia reported a robust 5% year-on-year economic growth in the third
quarter of 2025, driven mainly by non-oil sector expansion, as per preliminary
government estimates. Multiple global and regional news outlets, citing
official releases, have provided further details and analysis, attributing the
performance to post-pandemic recovery initiatives, Vision 2030 reforms, and
improved global economic conditions.
Saudi Economy Records Strong Growth
Saudi Arabia's economy expanded by approximately 5% during
the third quarter of 2025, according to official preliminary data issued by the
Saudi General Authority for Statistics. As reported by Reuters’ Mohamed El
Sharif, the government’s estimates reflect a significant rebound in economic
activity compared to the prior year, with the majority of growth contributions
stemming from non-oil sectors.
The General Authority for Statistics stated that
“the growth is attributed to continued momentum in diversified sectors such as manufacturing, tourism, and retail trade, which saw positive gains through the third quarter.”
These insights, mentioned by El Sharif for Reuters, echoed
official Saudi statements issued alongside the data release.
Non-Oil Sectors Lead Expansion
As detailed by Bloomberg’s Vivian Nereim, the non-oil
private sector—central to Riyadh’s Vision 2030 economic diversification
strategy—demonstrated robust results, helping drive overall GDP growth.
Manufacturing and tourism, in particular, saw enhanced investment inflows,
buoyed by major government-led initiatives to attract both domestic and international
capital to non-oil industries.
In statements cited by Nereim of Bloomberg, officials
highlighted the importance of these sectors in generating employment and
sustaining long-term fiscal health for the Kingdom.
Oil Output and Price Dynamics
While Saudi Arabia’s headline growth was led by non-oil sectors, oil output remained steady amid fluctuating global prices during the reporting period.
“The oil sector held its ground, contributing to stable export revenues and government income, which continue to support public spending,”
according to coverage by The Wall Street Journal’s Summer Said.
Saudi officials quoted by The Wall Street Journal emphasised that
“energy markets remain a vital stabilising force for the economy, but the Kingdom’s strategic focus is now firmly on diversification to ensure sustained growth regardless of oil price volatility.”
Government and Market Reactions
Minister of Economy and Planning Faisal Al-Ibrahim, quoted in the Saudi Gazette by staff reporter Khalid Al-Bahri, welcomed the new data:
“These strong results underscore the resilience of the Saudi economy. Measures introduced in recent years, such as investor-friendly regulations, digital transformation, and infrastructure investment, are now bearing fruit.”
He added
that forward-looking indicators suggest continued expansion into 2026.
Market analysts, including those from Al Arabiya cited in
the same report, viewed the figures as a vote of confidence in the Kingdom’s
reform trajectory, helping sustain foreign investor interest in Saudi markets.
Vision 2030 and Investment Climate
As reported by Simon Kerr for the Financial Times, Saudi
Arabia’s Vision 2030 has been instrumental in directing investments towards
non-oil sectors. Kerr’s analysis highlights the rising role of the Public
Investment Fund (PIF) in projects spanning tourism, technology, entertainment,
and logistics.
“Increasing capital inflows and ambitious mega-projects, such as NEOM and the Red Sea Development, are playing central roles in bolstering economic activity and diversifying national income sources,”
Kerr
quoted senior officials as saying in the FT.
Consumer Spending and Labour Market Trends
Reflecting on household consumption, journalists at Gulf
News reported that retail trade and household services experienced upward
trends, underpinned by improved consumer confidence and employment conditions
in the Kingdom.
The Minister for Human Resources, Ahmad Al-Rajhi, quoted by Gulf News, noted:
“Job creation in non-oil industries is accelerating, giving more Saudis access to employment opportunities and boosting local spending power,”
contributing to the positive Q3 results.
Regional and Global Context
The economic uptick also comes at a time of gradual global recovery from the COVID-19 pandemic, with international trade volumes and tourism flows to the region improving in 2025. As observed by CNBC’s Hadley Gamble,
“Saudi Arabia’s performance stands out in the Middle East and North Africa, where several economies are reporting more modest recoveries due to ongoing regional uncertainties,”
citing comparative country data in the
quarterly IMF bulletin.
Gamble added that
“the recalibration of Saudi economic policy has positioned the Kingdom as an engine of growth in the Gulf and beyond.”
Future Outlook
Looking ahead, the Ministry of Finance forecast steady,
though slightly moderated, growth in the coming quarters, in line with
expectations for the global economy and continued rollouts under Vision 2030.
The ministry, speaking to Asharq Al-Awsat’s staff, emphasised prudent fiscal
management and ongoing economic reforms as keys to resilience and
diversification in the evolving global economic landscape.
Banking groups, including National Commercial Bank, told Asharq Al-Awsat’s business desk that
“business sentiment remains overwhelmingly positive, and the government’s track record in implementing economic initiatives has raised confidence among global investors.”
Saudi Arabia’s estimated 5% GDP increase in Q3 2025 underlines the effectiveness of the country’s diversification policies, with strong non-oil sector performance, investor confidence, and a positive employment trend all contributing factors. As international observers continue to monitor the Kingdom’s transition from oil dependency, these latest results are considered a sign of promising economic momentum.