Video|12 June 2025

Can Saudi Arabia’s Non-Oil Momentum Drive Regional Growth?

Scott Livermore
Scott Livermore
Chief Economist & Managing Director
Can Saudi Arabia’s Non-Oil Momentum Drive Regional Growth?


Saudi Arabia’s Q1 GDP was revised upward to 3.4% year-on-year, driven by a robust 4.9% expansion in the non-oil sector. Domestic momentum is expected to strengthen further in the second half of the year, with full-year economic growth forecasted at 5.2%. Meanwhile, strong demand for Saudi debt issuance on international markets suggests that government policy should continue to support growth despite ongoing weaker oil prices.


Across the GCC, non-oil business activities sustained expansion in May, with all PMI readings remaining above 50, signalling continued growth. However, the pace of expansion softened slightly in the UAE, as output and new order increases weakened. In contrast, Saudi Arabia, Qatar, and Kuwait maintained strong momentum. Looking ahead, non-oil private sectors are expected to remain key economic growth engines, particularly the tourism sector in the UAE and Qatar, and the construction sector in Kuwait and Saudi Arabia.


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