https://arab.news/bfhcd
By the end of 2025, Saudi Arabia had recorded notable advances in its economic and developmental transformation, further solidifying its status as a leading regional and global economy and reaffirming its role as a founding member of the G20.
Driven by the continued implementation of Saudi Vision 2030, the Kingdom achieved key economic and financial milestones during the year. It diversified government revenue sources, strengthened private sector participation, attracted both foreign and domestic investment, and accelerated growth in priority sectors including industry, tourism, technology, and renewable energy.
These achievements enhanced economic sustainability, improved quality of life, and created new employment opportunities, reflecting the Kingdom’s ambitious pursuit of a more prosperous and globally competitive future.
Despite global economic uncertainty stemming from geopolitical tensions, trade disputes, and supply chain disruptions, Saudi Arabia’s economy maintained steady growth. According to the General Authority for Statistics, real gross domestic product grew by 4.8 percent in the third quarter of 2025 compared with the same period in 2024. This expansion was driven by growth across all major economic activities, with oil activities increasing by 8.3 percent, non-oil activities by 4.3 percent, and government activities by 1.4 percent on a year-on-year basis.
Oil refining recorded the highest growth among oil-related activities in the third quarter of 2025, rising by 11.9 percent year on year and 3.9 percent quarter on quarter. Overall oil activities expanded by 3.9 percent, supported by higher production following the OPEC+ agreement to gradually unwind voluntary output cuts beginning in May 2025, accelerating the return of supply to the market.
Inflation remained well contained. The annual inflation rate, as measured by the Consumer Price Index, stood at 1.9 percent in November 2025 compared with November 2024. On a month-on-month basis, the index remained relatively stable, increasing by just 0.1 percent from October 2025.
External trade performance was also robust. Non-oil exports, including re-exports, surged by 32.3 percent year on year in October 2025, while national non-oil exports rose by 2.4 percent. Total merchandise exports increased by 11.8 percent, contributing to a 47.4 percent rise in the trade surplus.
Foreign direct investment continued to gain momentum. Net FDI inflows reached SR24.9 billion ($6.64 billion) in the third quarter of 2025, representing a 34.5 percent increase year on year compared with SR18.5 billion in the same quarter of the previous year. Net inflows also rose by 5.2 percent on a quarter-to-quarter basis, up from SR23.7 billion in the preceding quarter.
Inward FDI flows totaled approximately SR27.7 billion during the third quarter of 2025, marking a 4.4 percent year-on-year increase compared with SR26.5 billion in the same quarter of 2024. By contrast, outward FDI flows declined significantly, amounting to around SR2.7 billion in the third quarter of 2025, down 65.7 percent from SR8 billion in the corresponding quarter of 2024.
Saudi Arabia also emerged as a global leader in tourism in 2025. Supported by strong government backing and ambitious leadership, the Kingdom ranked first globally in international tourism revenue growth in the first quarter of 2025 compared with 2019, according to the World Tourism Barometer. It also ranked third worldwide in international tourist arrivals growth and second in the Middle East over the same period.
In summary, despite heightened global economic uncertainty driven by multiple economic and geopolitical challenges, the Saudi economy continued to post positive growth throughout 2025. According to the IMF’s 2025 Article IV Consultation, Saudi Arabia demonstrated strong resilience to external shocks, supported by expanding non-oil economic activity, contained inflation, and unemployment at record-low levels.
A forthcoming article will provide a forward-looking assessment of Saudi Arabia’s economic outlook for 2026, in line with the objectives of Saudi Vision 2030.
• Talat Zaki Hafiz is an economist and financial analyst.
X: @TalatHafiz