Saudi economy grows 4.5% in 2025 as oil, non-oil sectors accelerate 

According to flash estimates released by Saudi Arabia’s General Authority for Statistics, oil activities in the Kingdom expanded by 5.6 percent in 2025 compared to the previous year. Shutterstock
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Updated 01 February 2026
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Saudi economy grows 4.5% in 2025 as oil, non-oil sectors accelerate 

RIYADH: Saudi Arabia’s real gross domestic product expanded by 4.5 percent year on year in 2025, driven by strong growth in both oil and non-energy activities, official data showed. 

According to flash estimates released by Saudi Arabia’s General Authority for Statistics, oil activities in the Kingdom expanded by 5.6 percent in 2025 compared to the previous year, while non-oil operations and government activities rose by 4.9 percent and 0.9 percent, respectively, during the same period. 

The latest report aligns with an October outlook from the International Monetary Fund, which projected Saudi Arabia’s GDP would grow by 4 percent in both 2025 and 2026. 

Earlier this month, the World Bank forecast that the Kingdom’s GDP is projected to expand by 4.3 percent in 2026 and 4.4 percent in 2027, up from an expected 3.8 percent in 2025. 

“The main driver of real GDP growth in 2025 was non-oil activities, which contributed 2.7 percentage points, while oil activities with 1.4 pp, government activities at 0.1 pp and net taxes on products at 0.2 pp, also contributed positively,” said GASTAT.  

Momentum accelerated toward year-end. Real GDP expanded 4.9 percent in the fourth quarter from a year earlier, led by a 10.4 percent surge in oil activities, while non-oil sectors grew 4.1 percent. Government activities contracted 1.2 percent on an annual basis in the quarter. 

“The main driver of growth in real GDP of the fourth quarter of 2025 was oil activities, which contributed 2.5 pp, non-oil activities contributed 2.3 pp and net taxes on products contributed 0.2 pp, while government activities had a negative contribution of 0.2 pp,” added the authority.  

Saudi Arabia’s seasonally adjusted real GDP recorded growth of 1.1 percent in the fourth quarter of 2025 compared to the previous three months.  

In the fourth quarter, oil activities witnessed a quarter-on-quarter growth of 1.4 percent, while non-oil activities expanded by 1.3 percent during the same period.  

Government activities, however, recorded a decline of 0.2 percent in the fourth quarter compared to the previous three months.  

Earlier this month, a separate analysis by Standard Chartered said the Kingdom’s GDP is expected to expand by 4.5 percent in 2026, outperforming the global growth average of 3.4 percent, driven by sustained momentum in both hydrocarbon and non-oil sectors. 


Saudi Arabia leads outcome-based education to prepare future-ready generations: Harvard Business Review

A Harvard sign is seen at the Harvard University campus in Boston, Massachusetts, on May 27, 2025. (AFP)
Updated 10 February 2026
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Saudi Arabia leads outcome-based education to prepare future-ready generations: Harvard Business Review

  • The Riyadh-based school group developed a strategy that links every classroom activity to measurable student competencies, aiming to graduate learners equipped for the digital economy and real-world contexts

RIYADH: Saudi Arabia’s education system is undergoing a sweeping transformation aligned with Vision 2030, shifting from traditional, input-focused methods to outcome-based education designed to equip students with future-ready skills, Harvard Business Review Arabic reported.

The transformation is being adopted and spearheaded by institutions such as Al-Nobala Private Schools, which introduced the Kingdom’s first national “learning outcomes framework,” aimed at preparing a generation of leaders and innovators for an AI-driven future, the report said.

Al-Nobala has leveraged international expertise to localize advanced learning methodologies.

The Riyadh-based school group developed a strategy that links every classroom activity to measurable student competencies, aiming to graduate learners equipped for the digital economy and real-world contexts. The school’s group approach combines traditional values with 21st-century skills such as critical thinking, communication, innovation and digital fluency.

According to the report, the shift addresses the growing gap between outdated models built for low-tech, resource-constrained environments and today’s dynamic world, where learners must navigate real-time information, virtual platforms, and smart technologies.

“This is not just about teaching content, it’s about creating impact,” the report noted, citing how Al-Nobala’s model prepares students to thrive in an AI-driven world while aligning with national priorities.

The report noted that Saudi Arabia’s Ministry of Education has paved the way for this shift by transitioning from a centralized controller to a strategic enabler, allowing schools such as Al-Nobala to tailor their curriculum to meet evolving market and societal needs. This is part of the long-term goal to place the Kingdom among the top 20 global education systems.

Al-Nobala’s work, the report stated, has succeeded in serving the broader national effort to link education outcomes directly to labor market demands, helping to fulfill the Vision 2030 pillar of building a vibrant society with a thriving economy driven by knowledge and innovation.

Last February, Yousef bin Abdullah Al-Benyan, Saudi Arabia’s minister of education, said that the Kingdom was making “an unprecedented investment in education,” with spending aligned to the needs of growth and development. He said that in 2025, education received the second-largest share of the state budget, totaling $53.5 billion.