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Saudi GDP Grows 3.9% Amid Rising Non-Oil Sector

9/8/2025

29 4 Full Breakdown

Summary

Story summary

Saudi Arabia's GDP grew by 3.9% in Q2 2025, primarily due to non-oil sectors.
Non-oil activities increased by 4.6%, while oil activities rose by 3.8%.
The electricity, gas, and water sectors experienced the highest growth at 10.3%.
OPEC+ plans to raise oil production by 137,000 barrels per day in October.
Lower oil prices around $65 may affect Saudi Arabia's economy, which needs prices above $90 to balance its budget.

History

Historical Context

The 2014 decline in Brent crude oil prices to $57 per barrel exposed Saudi Arabia's economic vulnerability, with 90% of its revenue reliant on oil. In response, the Kingdom initiated diversification efforts, crucial for sustaining growth as non-oil sectors grew by 4.6% in 2025. These reforms are vital for mitigating risks associated with fluctuating oil prices, which need to exceed $90 for budget balance.

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Story summary

Saudi Arabia's GDP grew by 3.9% in Q2 2025, primarily due to non-oil sectors.
Non-oil activities increased by 4.6%, while oil activities rose by 3.8%.
The electricity, gas, and water sectors experienced the highest growth at 10.3%.
OPEC+ plans to raise oil production by 137,000 barrels per day in October.
Lower oil prices around $65 may affect Saudi Arabia's economy, which needs prices above $90 to balance its budget.

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