Saudi Arabia’s Economy Expands 5% in Q3, Fastest Growth Since Early 2023

Saudi Arabia’s economy accelerated at a 5 percent annual rate in the third quarter of 2025, marking its strongest growth in more than two years, driven by a rebound in oil production and sustained momentum in non-oil activities, official data showed.

According to flash estimates released by the General Authority for Statistics (GASTAT), oil sector output surged 8.2 percent year-on-year, while non-oil activities grew 4.5 percent. Government services also expanded by 1.8 percent during the same period. The performance represents the fastest pace since the first quarter of 2023, when real gross domestic product (GDP) increased by 5.7 percent.

The latest data underscores the progress of the Kingdom’s Vision 2030 economic transformation plan, which aims to reduce dependence on oil revenues and stimulate growth across a range of industries including tourism, logistics, manufacturing, and technology.

Commenting on the outlook earlier this week, Minister of Economy and Planning Faisal Alibrahim said during the Future Investment Initiative forum in Riyadh that Saudi Arabia’s GDP is expected to grow by 5.1 percent in 2025, buoyed by continued expansion in the non-oil sectors.

GASTAT noted that non-oil activities were the primary driver of overall growth in the third quarter, contributing 2.6 percentage points to the total GDP increase. Oil activities added 2 percentage points, while government services and net taxes on products each contributed 0.2 percentage points.

Quarter-on-quarter, seasonally adjusted real GDP grew by 1.4 percent, reflecting broad-based gains across all major sectors. Oil output rose 3.1 percent compared to the previous quarter, while non-oil and government activities grew 0.6 percent and 0.7 percent, respectively. Oil activities accounted for 0.8 percentage points of quarterly growth, followed by non-oil activities with 0.4 points and government services with 0.1 points, the report said.

The strong performance aligns with upward revisions to Saudi Arabia’s growth forecasts by major global institutions. Earlier this month, the World Bank raised its 2025 growth projection for the Kingdom to 3.2 percent from 2.8 percent, citing higher oil production and resilient non-oil activity. Similarly, the Organization for Economic Cooperation and Development (OECD) in September lifted its 2026 growth estimate to 3.9 percent, up from a previous forecast of 2.5 percent.

GASTAT explained that flash GDP estimates are produced shortly after the end of each quarter and provide an early indication of economic trends before full data becomes available. These preliminary figures are subject to revision in future releases as more comprehensive information is collected.