The World Bank expects the Saudi economy will grow by 2.8% in 2025, with economic performance accelerating further in 2026 to reach 4.5%, supported by increased oil production and a stronger contribution from non-oil sectors to GDP.
In its new report titled “How the Private Sector Can Drive Growth in the Middle East and North Africa,” that the Kingdom’s efforts to diversify its economy are playing a pivotal role in supporting sustainable growth and enhancing the economy’s resilience in the face of global challenges.
The report explained that economic activity in Saudi Arabia is poised to benefit from OPEC+"s plans to gradually increase oil production between April 2025 and September 2026, which is considered an important factor supporting economic growth in the Kingdom.
The bank also affirmed that Saudi Vision 2030 has helped drive economic transformation through investment in promising sectors, increased reliance on the private sector, and the promotion of innovation and investment, thereby strengthening the Saudi economy’s ability to achieve stable and sustainable growth rates over the medium term.
The bank projected that average growth in the Middle East and North Africa region would reach 2.6% in 2025, while the economies of the Gulf Cooperation Council (GCC) countries are expected to grow by 3.2%, with growth of 0.8% in oil-exporting developing countries and 3.4% in oil-importing countries in 2026.
The report noted that Saudi Arabia is steadily moving toward strengthening the private sector’s role as a key driver of economic growth, amid an attractive reform environment and incentive programs aimed at fostering business development and creating job opportunities for citizens.
While the report noted some challenges related to global market volatility, it emphasized that the Kingdom’s ability to respond flexibly to international changes enhances its prospects for maintaining a balanced growth trajectory, especially given the presence of well-considered fiscal and economic policies.
