Saudi GDP Growth Surpasses Expectations on Strong Non-Oil Activity
Expansion of 3.9% in Q2 fueled by non-oil sector as Vision 2030 reforms take hold, says GASTAT.
Riyadh: Saudi Arabia's economy demonstrated robust performance in the second quarter, expanding at a rate of 3.9 percent, according to official data released by the General Authority for Statistics (GASTAT).
This growth represents an 18th consecutive quarter of expansion driven primarily by non-oil activities.Non-oil sectors were particularly dynamic, increasing by 4.6 percent year-on-year in the April-June period.
These advancements underscore the effectiveness of Vision 2030 reforms aimed at reducing the nation's dependence on oil revenues and diversifying its economic base.The latest figures align with projections from the International Monetary Fund (IMF), which anticipates a 3.6 percent growth for Saudi Arabia this year, followed by an acceleration to 3.9 percent in 2026.In detailing the Q2 performance, GASTAT highlighted that all main economic activities experienced year-over-year growth, with non-oil sectors contributing significantly to the overall expansion with a 4.6 percent increase.
In contrast, oil activities saw a more modest rise of 3.8 percent, while government sectors expanded at a slower pace of 0.6 percent.On a quarterly basis, oil activities led the economic growth with a notable increase of 5.6 percent, whereas non-oil activities advanced by 0.8 percent and government sectors contracted by 0.8 percent.Electricity, water, and gas sectors were among the most dynamic during this period, posting a substantial 10.3 percent year-on-year gain.
Additionally, finance, insurance, and business services grew by 7 percent, with wholesale, retail trade, restaurants, and hotels increasing by 6.6 percent.The momentum seen in Q2 follows a strong start to the year, where GASTAT reported that the economy expanded by 2.7 percent year-on-year in the first quarter, also buoyed by robust non-oil activity.Economic Minister Faisal Alibrahim emphasized the significance of non-oil activities' contribution to the overall GDP growth, which now accounts for 53.2 percent of economic output, reflecting a positive outlook supported by ongoing structural reforms and large-scale state-led projects across various sectors.
This growth represents an 18th consecutive quarter of expansion driven primarily by non-oil activities.Non-oil sectors were particularly dynamic, increasing by 4.6 percent year-on-year in the April-June period.
These advancements underscore the effectiveness of Vision 2030 reforms aimed at reducing the nation's dependence on oil revenues and diversifying its economic base.The latest figures align with projections from the International Monetary Fund (IMF), which anticipates a 3.6 percent growth for Saudi Arabia this year, followed by an acceleration to 3.9 percent in 2026.In detailing the Q2 performance, GASTAT highlighted that all main economic activities experienced year-over-year growth, with non-oil sectors contributing significantly to the overall expansion with a 4.6 percent increase.
In contrast, oil activities saw a more modest rise of 3.8 percent, while government sectors expanded at a slower pace of 0.6 percent.On a quarterly basis, oil activities led the economic growth with a notable increase of 5.6 percent, whereas non-oil activities advanced by 0.8 percent and government sectors contracted by 0.8 percent.Electricity, water, and gas sectors were among the most dynamic during this period, posting a substantial 10.3 percent year-on-year gain.
Additionally, finance, insurance, and business services grew by 7 percent, with wholesale, retail trade, restaurants, and hotels increasing by 6.6 percent.The momentum seen in Q2 follows a strong start to the year, where GASTAT reported that the economy expanded by 2.7 percent year-on-year in the first quarter, also buoyed by robust non-oil activity.Economic Minister Faisal Alibrahim emphasized the significance of non-oil activities' contribution to the overall GDP growth, which now accounts for 53.2 percent of economic output, reflecting a positive outlook supported by ongoing structural reforms and large-scale state-led projects across various sectors.
