Saudi Arabia's economy grew by 2.8% in the first quarter of 2026, according to Vision 2030
The General Authority for Statistics in the Kingdom of Saudi Arabia announced that the real GDP achieved positive growth of 2.8% during the first quarter of 2026, compared to the same period of the previous year, 2025. This growth reflects the continued strong performance of the Saudi economy and its ability to achieve sustainable growth rates, driven mainly by the strong momentum in non-oil economic activities.
According to the Authority's preliminary estimates, the primary driver of this growth was the non-oil sector, which recorded a remarkable 2.8% year-on-year increase, further confirming the success of the Kingdom's economic diversification strategies. Oil activities also saw growth of 2.3%, while government activities grew by 1.5%, indicating a balanced performance across the various sectors of the national economy.
General context and objectives of Vision 2030
This outstanding economic performance comes within the context of the Kingdom's relentless efforts to achieve the objectives of "Saudi Vision 2030," an ambitious plan aimed at transforming the Saudi economy and reducing its dependence on oil as the primary source of income. Since its launch in 2016, the Vision has focused on developing promising economic sectors such as tourism, entertainment, technology, industry, and logistics. The rapid growth of the non-oil sector is tangible evidence that these structural reforms are beginning to bear fruit, as this sector has become the largest contributor to GDP growth, accounting for approximately 1.7 percentage points of the overall growth.
Importance and expected impact
Domestically, this growth boosts confidence in the business environment and encourages increased local and foreign investment, contributing to the creation of more job opportunities for citizens. It also reflects improved purchasing power and increased consumer and investment spending. Regionally and internationally, the continued growth of the Saudi economy solidifies the Kingdom's position as a leading economic power in the Middle East and an influential player within the G20. The success of the Saudi economic diversification model offers an inspiring story for other resource-dependent nations and attracts the attention of global investors seeking stable markets with high growth potential.
In contrast, the data showed that seasonally adjusted real GDP recorded a decrease of 1.5% compared to the fourth quarter of 2025. The authority explained that this quarterly decline is mainly due to a decrease in oil and government activities, which may be related to natural fluctuations in production or government spending in the short term, and does not affect the positive picture of annual growth, which is the most important indicator of the health of the economy.
