Saudi Arabia’s Economy Exceeds Expectations in Q1 2025
Economic data for Saudi Arabia’s first quarter of 2025 reveal that the country’s economy performed stronger than expected.
Economic data for Saudi Arabia’s first quarter of 2025 reveal that the country’s economy performed stronger than expected. While previously announced growth was 2.7%, the main contribution came from non-oil sectors, which grew by 4.9%. During the same period, contraction in the oil sector remained limited at around 0.5%. Government spending was also one of the important factors supporting growth.
Among the leading sectors, retail and hospitality grew by 8.4%, transportation and communication by 6%, and finance and business services by 5.5%. Domestic demand increased by 4.5%, while fixed capital investments rose by 8.5%.
Saudi Arabia is the Most Active Venture Capital Market in the MENA Region
According to MAGNiTT data, Saudi Arabia was the most active venture capital market in the MENA region during the first half of 2025, completing 114 investment deals and attracting investments exceeding 860 million dollars. These figures highlight the country’s economic diversification and growth targets in innovative sectors.
On the export side, there was a 9% increase in non-oil products, while imports decreased by 10%. These developments positively impacted the trade balance and helped net exports contribute positively to growth.
An increase in oil production limited the contraction of the sector. However, the budget GDP growth for the first half of the year was revised to 3.4%, reaching a level of 101 billion riyals.
This increase also led to a budget deficit being recorded. The Ministry of Finance announced that public expenditures will be reviewed.
Mega projects and infrastructure investments carried out under Vision 2030 are expected to accelerate economic growth throughout the year.