While the headline numbers of Saudi Arabia’s GDP growth are impressive, a deeper dive into the data from H2 2024 and H1 2025 reveals a much more nuanced and surprising story of economic transformation. This report unpacks the key drivers, regional context, and sector-specific trends that are reshaping the Kingdom’s economy, providing insights that go beyond the surface-level analysis.

Five Facts That Will Change How You See the Saudi Economy

  1. Saudi Arabia is now officially a non-oil majority economy. In 2024, non-oil sectors crossed the critical threshold to contribute 55% of the country’s total GDP, a landmark achievement in its diversification journey.
  2. The Kingdom achieved its 2030 unemployment target six years ahead of schedule. The unemployment rate plummeted from 12.3% in 2016 to just 7% in 2024, showcasing a dramatic improvement in the labor market.
  3. Saudi Arabia leaped 46 places in the global e-government rankings in just six years. Moving from 52nd in 2018 to 6th in 2024, this meteoric rise reflects a profound digital transformation.
  4. The Public Investment Fund’s (PIF) success was so exceptional that its 2030 target was raised by 43%. Originally aiming for $1.87 trillion in assets, the PIF’s stellar performance, growing 390% since 2016, prompted a revised target of $2.67 trillion.
  5. In 2024, Saudi Arabia’s oil sector contracted by 4.5% while its non-oil sector grew by 4.6%—a near-perfect mirror image that vividly illustrates the success of the Kingdom’s diversification strategy.

Vision 2030: More Than Just a Plan, It’s a Reality

The ambitious goals of Vision 2030 are not just future aspirations; they are being realized today. The 2024 annual report reveals that 85% of the 1,502 initiatives are either complete or on track, with 257 key performance indicators (KPIs) surpassing their targets.
This progress is most evident in the non-oil sector, which has become the primary engine of the Saudi economy. In Q4 2024, non-oil activities grew by a robust 4.7%, significantly outpacing the oil sector’s 3.4% growth. This trend is not an anomaly but the result of a concerted effort to empower the private sector, attract foreign investment, and develop new industries.

Key Non-Oil Sector Highlights:

  • Manufacturing: Now the largest single non-oil sector, contributing 12.5% to nominal GDP.
  • Finance & Insurance: A thriving hub of investment and innovation, this sector grew by 7% in Q2 2025.
  • Electricity, Water & Gas: This sector saw explosive growth of 10.3% in Q2 2025, fueled by massive investments in renewable energy and water desalination projects.
  • Tourism & Hospitality: A key pillar of Vision 2030, this sector continues to expand, with significant gains in non-oil manufacturing and supply chain development.

A Regional Leader in a Global Context

Saudi Arabia’s economic transformation is even more impressive when viewed in a regional and global context. While the global economy faced headwinds in 2024 with a weaker-than-expected growth of 3.2%, the GCC region demonstrated remarkable resilience, growing by 1.7%.
However, the real story lies in the individual country performances. In 2024, Qatar led the GCC with a 4.5% real GDP growth, followed by the UAE at 3.6% and Saudi Arabia at 2.8%. This highlights the diverse economic strategies at play within the region.
Looking ahead, the World Bank projects a strong recovery for the GCC, with an expected growth of 3.2% in 2025 and 4.5% in 2026. Saudi Arabia is poised to be a key driver of this growth, with a projected non-oil GDP growth of 4.4% in 2025.

Surprising Regional Insights:

  • The UAE is a consistent outperformer, leading GCC growth projections for 2025-2027.
  • Kuwait is staging a dramatic turnaround, recovering from a -2.9% contraction in 2024 to a projected 2.2% growth in 2025.
  • Qatar’s LNG boom is set to accelerate its growth from 2.4% in 2025 to an average of 6.5% in 2026-2027.

A New Economic Paradigm

The data from H2 2024 and H1 2025 paints a clear picture: Saudi Arabia is undergoing a profound economic transformation. The Kingdom is successfully diversifying its economy, empowering the private sector, and creating new opportunities for its citizens. While challenges remain, the progress made so far is undeniable.
The surprising success stories, from the dramatic leap in e-government rankings to the early achievement of unemployment targets, demonstrate the power of a clear vision and a relentless focus on execution. As Saudi Arabia continues on its path of reform, the world is taking notice. The Kingdom is no longer just an oil powerhouse; it is emerging as a dynamic and diversified economy, a hub of innovation, and a global benchmark for transformation.
The key takeaway is this: the Saudi Arabia of today is not the Saudi Arabia of a decade ago. The numbers don’t lie, and they tell a story of a nation on the rise, a story that is just beginning to unfold.

 

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