Saudi Arabia reports economic growth of 5pct in Q3

Saudi Arabia’s economy grew 5 percent in the third quarter from a year earlier, according to flash government estimates released on Thursday, with oil-related growth surging as output ramps up.

Oil activities expanded 8.2 percent year-on-year, followed by growth of 4.5 percent in non-oil activity and 1.8 percent growth in government activity, preliminary data from the statistics authority showed.

Seasonally adjusted real GDP increased 1.4 percent in the third quarter, compared to the previous quarter, due to an increase in oil activities of 3.1 percent. Non-oil activity growth was 0.6 percent on a quarterly basis.

Saudi Arabia’s economic growth is expected to be boosted this year by the gradual unwinding of oil production cuts by the OPEC+ group of nations of which the kingdom is a leading member.

Having curbed production over several years in a bid to support the oil market, the group, which also includes Russia, started easing those curbs in April.

The ministry of finance has forecast real GDP growth of 4.4 percent in 2025, up from 2 percent last year, driven by the growth of non-oil activities. The International Monetary Fund raised its forecast for real GDP growth in 2025 to 4 percent earlier this month on increased oil output.

The world’s top oil exporter is in the midst of a massive economic transformation spearheaded by Crown Prince Mohammed bin Salman – Vision 2030 – designed to increase non-oil growth and revenue and reduce hydrocarbon dependence.

The economy minister said on Wednesday the country was on a long term restructuring journey towards economic diversification.