Written by The Banking Post
Saudi Arabia expects its economy to grow by 5.1% in 2025, fueled largely by expansion in non-oil sectors as the Kingdom intensifies efforts to diversify away from hydrocarbons.
“We forecast to close the year…in terms of total real GDP growth at around 5.1% and for non-oil GDP around 3.8%,” Economy Minister Faisal Alibrahim said during a panel at the Future Investment Initiative conference in Riyadh on Wednesday.
He noted that the country is on a long-term restructuring journey aimed at building a more resilient and productive economy less dependent on oil. “We are prioritising diversifying our economy away from having to rely on oil, to become a more resilient economy that witnesses sustainable growth that’s driven by productivity, not just by natural resources,” he said.
The finance ministry projects real GDP growth of 4.4% in 2025 and 4.6% in 2026, both led by non-oil activities. Earlier this month, the International Monetary Fund raised its forecast for Saudi Arabia’s 2025 growth to 4% on expectations of higher oil output.
The world’s top oil exporter is pursuing Vision 2030, an ambitious reform plan championed by Crown Prince Mohammed bin Salman, to boost non-oil revenue and reduce reliance on hydrocarbons. Officials often describe the initiative as the country’s “north star.”
However, several major projects under Vision 2030 have faced delays amid lower oil prices and widening budget deficits, forcing the government to prioritize certain developments while scaling back others.
