Home / Business and Economy / Saudi Economy Surges: Oil Powers Fastest Growth in 3 Years
Saudi Economy Surges: Oil Powers Fastest Growth in 3 Years
1 Feb
Summary
- Saudi GDP grew 4.5% in 2025, the fastest pace in three years.
- Oil sector growth reached 5.6%, driven by increased production.
- IMF forecasts 4.5% growth for 2026, citing strong oil and non-oil sectors.
Saudi Arabia's economy achieved its fastest growth in three years in 2025, expanding by 4.5% as preliminary data revealed. This marked the strongest expansion since 2022. The oil sector was a significant contributor, showing a 5.6% growth rate.
This robust performance was fueled by Saudi Aramco's increased crude oil production, averaging around 10 million barrels per day in the final quarter of 2025, the highest since early 2023. These supply increases align with the OPEC+ policy led by the kingdom and Russia.
While non-oil activities also showed resilience, their momentum saw a gradual slowdown for the third consecutive year. The kingdom faces ongoing fiscal pressures, including budget deficits and planned spending cuts, prompting adjustments to major project timelines.
Despite geopolitical tensions that recently pushed Brent crude above $70 a barrel, potentially boosting oil revenues but risking broader economic slowdown, the IMF has upgraded its 2026 economic growth forecast for Saudi Arabia to 4.5%. This projection is supported by expectations of continued higher oil production and a healthy non-oil sector.
