Riyadh: Saudi Arabia’s Economy Minister Faisal Alibrahim has projected the kingdom’s real GDP growth at 5.1% for 2025, buoyed largely by a strong performance in the non-oil sector, as the government continues to push forward with its economic diversification agenda under Vision 2030.
Speaking at the Future Investment Initiative (FII) conference in Riyadh on Wednesday, Alibrahim said non-oil GDP is expected to grow by 3.8%, highlighting that Saudi Arabia is undergoing a major structural transformation aimed at long-term sustainability.
“We are on a long-term restructuring journey,” the minister said. “Our priority is to diversify the economy away from oil and build a more resilient and productive growth model that isn’t solely dependent on natural resources.”
The Ministry of Finance earlier forecasted 4.4% GDP growth for 2025 and 4.6% for 2026, primarily supported by expanding non-oil activities. The International Monetary Fund (IMF) also revised its projection upward to 4%, citing expectations of higher oil output and stronger fiscal momentum.
The kingdom, the world’s largest oil exporter, has been implementing a series of economic reforms under Crown Prince Mohammed bin Salman’s Vision 2030, which aims to increase non-oil revenues, boost private sector participation, and reduce reliance on hydrocarbons.
However, several of Vision 2030’s flagship mega-projects—including futuristic cities and tourism initiatives—have faced delays and scaling down amid fluctuating oil prices and widening fiscal deficits.
Despite these challenges, Saudi authorities remain optimistic that continued investment in technology, infrastructure, and human capital will sustain growth beyond the oil sector and anchor the next phase of the kingdom’s economic evolution.
