Saudi Arabia GDP Growth Rate Revised Up in Q4

Saudi Arabia’s economy expanded 2.8% year-on-year in the first quarter of 2026, slowing sharply from a 5% growth in the previous quarter, preliminary data showed. This marked the weakest pace of expansion since the second quarter of 2024, weighed down by tensions between the US and Iran that disrupted shipping through the Strait of Hormuz, a key route for roughly 20% of global oil and LNG supply. Growth in non-oil activities (2.8% vs 4.3% in Q4) and oil activities (2.3% vs 10.8%) decelerated sharply. Meanwhile, government activities rose 1.5%, rebounding from a 1.2% decline in the prior period. On a quarterly basis, GDP fell 1.5%, the first decline since the third quarter of 2023, following a 1.4% increase in the previous quarter. The IMF noted that the country is expected to be less heavily affected by the conflict than other Gulf states, given its ability to reroute part of its exports through alternative channels, alongside the relative resilience of its non-oil industrial sector.

Saudi Arabia’s economy grew 5% year-on-year in Q4 2025, marking the fastest pace in a year and slightly above preliminary estimates of 4.9%, following a 4.8% rise in Q3. The non-oil sector expanded 4.3%, the same as in the previous quarter, while the oil sector surged 10.8%, up from 8.3% in Q3. By activity, crude petroleum and natural gas extraction posted the largest gain in Q4 (12.4%), followed by wholesale and retail trade, restaurants, and hotels (5.4%), petroleum refining (5%), manufacturing excluding petroleum refining (5%), and finance, insurance, and business services (4.5%). Government activities, in contrast, contracted 1.2%, after a 1.4% rise in Q3. For the full year 2025, Saudi Arabia’s economy expanded 4.5%, accelerating from 2.7% growth in 2024.

Saudi Arabia’s economy advanced by 4.9% year-on-year in the fourth quarter of 2025, accelerating slightly from 4.8% expansion in the previous period, according to preliminary estimates. This marked the strongest economic expansion since the fourth quarter of 2024, mainly supported by growth in oil activities, which surged 10.4%, following an 8.3% increase in the prior quarter. Meanwhile, non-oil activities continued to expand (4.1% vs 4.3% in Q3). By contrast, government activities contracted by 1.2%, reversing from a 1.4% gain in the previous quarter. On a seasonally adjusted quarterly basis, GDP expanded 1.1%, slowing from the 1.4% expansion recorded in the September quarter and marking the softest growth in three quarters. For the full year of 2025, the economy grew by 4.5% after a 2.7% gain in 2024, with all sectors posting expansions: oil activities grew 5.6%, followed by non-oil activities at 4.9% and government activities at 0.9%.