The Saudi economy is expected to achieve its highest growth rate in three years by 2025, with projected growth ranging between 4.6% and 4.7%. This growth is considered one of the best among G20 countries, reflecting the success of Saudi efforts to diversify its economic sources.
Factors Supporting Economic Recovery
These positive expectations are attributed to several key factors, including:
- Mitigating the Impact of Oil Production Cuts: Saudi Arabia’s oil production will remain at around 9 million barrels per day.
- Favorable Fiscal Policies: Expected declines in interest rates will stimulate investments.
- Economic Reforms: As part of Vision 2030, aimed at reducing reliance on oil.
Non-Oil Sector Drives Growth
The non-oil sector remains the primary engine of growth in Saudi Arabia, with rapid development in sectors such as:
- Tourism
- Entertainment
- Sports
- Transportation
- Trade and Finance
Expected Growth Amid Economic Reforms
Major projects like the 2027 Gulf Cup and Expo 2030 support positive economic growth expectations. Additionally, structural reforms are enhancing the role of the private sector and creating more job opportunities.
Forecasts by International Institutions and Analysts
Most international institutions, such as the World Bank and Moody’s, agree that the Saudi economy will achieve growth of 4.7% in 2025. Meanwhile, the Saudi government expects slightly lower growth at 4.6%.
Future Outlook
With the continued implementation of major development programs, Saudi Arabia is expected to maintain positive growth rates of up to 4.6% in 2025, while strengthening the role of the private sector in driving economic growth and creating more jobs.