Saudi GDP growth accelerates to 3.8%

Updated 01 September 2015
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Saudi GDP growth accelerates to 3.8%

JEDDAH: Saudi Arabia’s gross domestic product (GDP) grew at its fastest pace in over a year at 3.79 percent during the second quarter of this year, reaching SR617.88 billion compared to SR595.31 billion for the same quarter of the previous year.
However, at current prices the GDP value fell by 11.93 percent to SR631.03 billion but the figure is still up from a revised 2.3 percent in the first quarter, according to a report by the Department of General Statistics and Information.
Commenting on the GDP figures, John Sfakianakis, Middle East director at Ashmore Group, told Arab News: “It is unlikely for the economy to maintain for the remainder two quarters growth of 3.8 percent. There would be a deceleration in growth especially as seasonal effects kick in such as the prolonged summer and Haj holidays in September. This would have an impact on the bottom line of business activity.”

He added: “The economy is coping well with cheaper oil prices. Oil prices have fallen by more than 50 percent yet economy has not decelerated by an equal amount. It is expected that the economy should grow by 3 percent this year which is not bad at all.”
The Saudi private sector recorded a rise in its value in real terms by 3.09 percent, and at current prices traded higher in value by 5.28 percent, rising to SR293.19 billion in the second quarter of this year, compared to SR278.49 billion in the corresponding quarter of the previous year.
Fahad M. Alturki chief economist and head of research at Jadwa Investment,said: “The Saudi growth is higher but dynamics of growth are different than last year. Oil sector takes the lead this time.”
He added: “Despite some moderation in the private sector, the nonoil sector continues to grow at a healthy rate compared to regional and emerging economies. We expect this growth to remain solid for the rest of the year.”
The Saudi Press Agency, quoting the statistics department report, said the electricity and gas activity and water witnessed the biggest increase among the activities of this sector, where the value at current prices increased by 11.20 percent compared with the corresponding period of the previous year. It said the value of gross domestic product of the oil sector decreased at current prices during the second quarter of this year by 39.07 percent, while its real value prices rose at the rate of 5.1 percent, compared with its value during the same period of the previous year.
Mohamed Ramady, senior adviser, Partner-Energy, said: “The Saudi economy will still remain hostage to the vagaries of oil prices and as these are expected to remain weak within the $45-$55 range for the rest of the year. Saudi oil GDP growth will be hard pushed to achieve an average growth rate of less than 4 percent with the nonoil sector dragging GDP down if the private sector confidence falters in the face of project cutbacks, cost savings and potential capital investment cuts in next year’s budget.”
However, he said: “Non-hydro carbon diversification is a must to sustain economic growth,”
The GDP of the government sector also achieved a rise in its value in real terms by 3.04 percent during the second quarter while its current prices increased by 22.6 percent, rising to SR138.03 billion compared to SR112.59 billion in the same period of the previous year.
The report showed that the value of oil exports at current prices decreased by 41.74 percent and the value of commodity imports at current prices fell by 9.64 percent compared with the corresponding period of the previous year.
Commenting on whether Saudi Arabia will maintain the current GDP growth for the rest of the year, London-based James Reeve, deputy chief economist and assistant general manager of Samba Financial Group, said: “No, it will not. The government is already slowing spending and is likely to cut investment spending in 2016. There is a very close correlation between nonoil growth and government spending.”


Saudi Aramco achieves significant progress in its gas production plan

Updated 26 February 2026
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Saudi Aramco achieves significant progress in its gas production plan

RIYADH: Saudi Aramco has announced the achievement of significant progress in its plan to expand gas production, with the start of production at the Jafurah field, the largest unconventional gas field in the Middle East, and the commencement of operational activities at the Tanajib Gas Plant, one of the largest gas plants in the world.

The oil giant aims to increase its sales gas production capacity by approximately 80 percent by 2030 compared to 2021 production levels, reaching nearly 6 million barrels of oil equivalent per day from total gas and associated liquids production, according to the Saudi Press Agency.

This is expected to generate additional operating cash flows ranging between $12 billion and $15 billion in 2030, subject to future demand for sales gas and liquids prices.

President and CEO of Saudi Aramco, Amin Al-Nasser, said: “We are proud to commence production at the Jafurah field and begin operations at the Tanajib Gas Plant. These are major achievements for Saudi Aramco and the future of energy in the Kingdom. Our ambitious gas program is expected to become a key source of profitability.”

He affirmed that these mega-projects contribute to meeting the growing domestic demand for gas, supporting industrialization and development in several key sectors, in addition to producing significant quantities of high-value liquids.

Al-Nasser expressed his gratitude for the support, trust, and attention that Saudi Aramco receives from the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, crown prince and prime minister, noting that this has had the most profound impact on the company’s achievements and distinguished projects that serve the Kingdom’s Vision 2030.

The gas extracted from the Jafurah field is expected to support the Kingdom’s growth targets in key sectors such as energy, artificial intelligence, major industries, and petrochemicals, potentially providing a major boost to the Kingdom’s economy and strengthening its position among the world’s top ten gas producers.

Saudi Aramco began first producing unconventional shale gas from the Jafurah field in December 2025, with technology playing a pivotal role in unlocking the potential of the Jafurah field and establishing it as a global benchmark for unconventional gas development. 

Since its inception, the project has leveraged technology to help reduce drilling and stimulation costs and enhance well productivity, contributing to its strong economic prospects.

The Jafurah area covers 17,000 sq. km and is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The Jafurah field project aims to produce 2 billion standard cubic feet per day of sales gas, 420 million standard cubic feet per day of ethane, and approximately 630,00 barrels per day of gas liquids and condensates by 2030.

The Tanajib Gas Plant is a key pillar in Aramco’s strategy to increase gas processing capacities and diversify its energy product portfolio, helping to foster long-term economic growth. 

Operations began in December 2025, and its raw gas processing capacity is expected to reach 2.6 billion standard cubic feet per day in 2026. The start of operations at the Tanajib Plant coincided with the commencement of production from the Marjan field expansion and development program. 

The plant is distinguished by its digital integration, enhanced operational efficiency, capability to execute complex projects, and optimal use of resources. It processes raw gas associated with crude oil production from the offshore Marjan and Zuluf fields.

Aramco’s gas expansion is expected to create thousands of direct and indirect job opportunities, generating significant added value and strengthening its position as a reliable energy provider. 

It also helps meet the growing demand for natural gas and enhances its supply to national industries. 

The expansion strategy supports efforts aimed at achieving the optimal energy mix for local electricity generation, advancing the Kingdom’s liquid fuel displacement program, which will have a positive environmental impact, supporting the Kingdom’s ambition to achieve net-zero emissions by 2060, enhancing energy security, and contributing to building a more diversified national economy.