Saudi Arabia’s real GDP expands 3.9% in Q2 on non-oil activities: GASTAT

Saudi Arabia’s non-oil activities grew by 4.6 percent year on year in the April–June period, underlining the progress of Vision 2030 reforms. Shutterstock
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Updated 08 September 2025
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Saudi Arabia’s real GDP expands 3.9% in Q2 on non-oil activities: GASTAT

  • Oil activities led the expansion with a 5.6% increase
  • Non-oil sectors contributed 2.6 percentage points to overall GDP growth

RIYADH: Saudi Arabia’s economy expanded 3.9 percent in the second quarter of the year, fueled by robust non-oil activity that extended its growth streak to 18 consecutive quarters, official data showed.

The Kingdom’s non-oil activities grew by 4.6 percent year on year in the April–June period, underlining the progress of Vision 2030 reforms aimed at diversifying the economy away from oil dependence, according to estimates from the General Authority for Statistics.

The latest gross domestic product figures align with projections from the International Monetary Fund, which in August forecast the Saudi economy to expand by 3.6 percent this year before accelerating to 3.9 percent in 2026. 

“Real GDP grew 3.9 percent in the second quarter of 2025 compared to the same quarter of 2024, while seasonally adjusted real GDP rose by 1.7 percent compared to the first quarter of 2025,” GASTAT said in its latest report. 

“All main economic activities increased year-on-year, with non-oil up 4.6 percent, oil up 3.8 percent, and government up 0.6 percent,” it added.

Quarterly, oil activities led the expansion with a 5.6 percent increase, while non-oil advanced 0.8 percent and government activities slipped 0.8 percent.

The authority said non-oil sectors contributed 2.6 percentage points to overall GDP growth, followed by oil at 0.9 points, and net taxes on products at 0.3 points.

Among individual sectors, electricity, water and gas activities expanded 10.3 percent year on year in the second quarter, while finance, insurance and business services grew 7 percent. Wholesale and retail trade, along with restaurants and hotels, rose 6.6 percent.

In May, GASTAT reported that the economy grew 2.7 percent year on year in the first quarter, also driven by strong non-oil momentum.

Commenting on the first quarter performance at the time, Minister of Economy and Planning Faisal Alibrahim, who chairs GASTAT’s board, said non-oil activities accounted for 53.2 percent of economic output, an increase of 5.7 percent from previous estimates.

He added that Saudi Arabia’s outlook remains positive, supported by structural reforms and large-scale state-led projects across multiple sectors. 


Saudi Arabia, WEF launch initiative to reshape global travel landscape

Updated 11 November 2025
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Saudi Arabia, WEF launch initiative to reshape global travel landscape

  • ‘Beyond Tourism’ is global framework advancing sustainability, inclusivity, and resilience in the sector

RIYADH: Saudi Arabia has partnered with the World Economic Forum to launch the “Beyond Tourism” initiative, a global framework designed to drive a more sustainable, inclusive, and resilient future for the travel and tourism sector.

Announcing the initiative on his X account, Saudi Minister of Tourism Ahmed Al-Khateeb said he was “thrilled to announce the launch,” noting that it is “dedicated to shaping the future of travel and tourism and is built around 10 core principles.”

Al-Khateeb emphasized that Beyond Tourism underscores the sector’s vital role as “a bridge between cultures, a means to empower communities, and a source of opportunities for future generations.”

The initiative comes as the global travel and tourism industry undergoes a major structural shift — moving away from fragmented, business-as-usual models toward integrated, ecosystem-based strategies.

According to the World Economic Forum, the sector is projected to reach 30 billion tourist visits and contribute $16 trillion to global gross domestic product by 2034. Yet, it continues to face complex challenges including rising tension between visitors and residents, environmental pressures, workforce shortages, and exposure to geopolitical and climate disruptions.

“The global travel and tourism sector is entering a period of profound transformation, moving decisively from a fragmented, business-as-usual operating model to a holistic, ecosystem-based paradigm,” the WEF said in a statement.

The forum noted that past reliance on siloed policies — a weakness underscored during the COVID-19 pandemic — has proven insufficient to address today’s global challenges.

Its proposed ecosystem approach focuses on five key enablers: infrastructure, finance, technology and innovation, people and skills, and policy and governance. The model aims to convert systemic challenges into opportunities for inclusive and sustainable growth.

Several destinations have already demonstrated the benefits of this approach. Countries such as Portugal, New Zealand, Costa Rica, Singapore, and Indonesia have leveraged it to improve conservation outcomes, diversify economies, and strengthen sustainable tourism development.

By promoting global cooperation among governments, private-sector leaders, and local communities, the Beyond Tourism initiative seeks to unlock the full potential of the industry while safeguarding cultural and natural heritage for generations to come.