In a move reflecting growing confidence in the economic trajectory of the Kingdom of Saudi Arabia, the World Bank revised its forecast for Saudi economic growth, raising the expected rate to 3.8% during 2025. This positive revision comes at a time when the Kingdom is undergoing massive structural transformations within the framework of Saudi Vision 2030, which aims to diversify sources of income and reduce overall dependence on oil revenues.
Drivers of expected economic growth
This optimism from international financial institutions, most notably the World Bank, is attributed to the strong and sustained performance of non-oil sectors. In recent years, the Kingdom has successfully stimulated vital new sectors such as tourism, entertainment, technology, and renewable energy. These sectors are no longer mere theoretical plans but have become genuine engines of growth, contributing effectively to GDP and creating new job opportunities for citizens, thereby boosting purchasing power and domestic consumption.
Economic context and the impact of Vision 2030
This figure (3.8%) cannot be interpreted in isolation from the historical context of economic reforms initiated with the launch of Vision 2030. The Kingdom has worked to improve the business environment, streamline procedures for foreign investors, and launch mega-projects such as NEOM, the Red Sea Project, and Qiddiya. These major projects play a pivotal role in attracting foreign direct investment and revitalizing the contracting and logistics sectors, thus supporting positive prospects for the coming years.
Balance between the oil and non-oil sectors
Although the voluntary oil production cuts implemented by the Kingdom within the OPEC+ alliance temporarily impacted overall growth rates in previous periods, projections for 2025 indicate a recovery in global energy demand, coinciding with stable or gradually increasing production. This balance between a renewed momentum in the oil sector and accelerated growth in the non-oil sector is what prompts the World Bank to raise its projections.
Regional and international importance
This anticipated growth carries significant weight that extends far beyond local borders; the Saudi economy is a key driver of the economies of the Middle East and North Africa region. Growth in the Saudi economy translates to increased trade with neighboring countries and enhanced financial stability in the region. Internationally, the Kingdom remains a crucial player in stabilizing global energy markets and a strategic partner in the G20, making its economic indicators a focus of attention for investors and policymakers worldwide.
