RIYADH: The World Bank has raised Saudi Arabia’s 2025 economic growth forecast to 3.2 percent, citing stronger oil output and robust non-oil activity, marking a notable upgrade from the 2.8 percent projected in April.
The Washington-based lender said in its latest Middle East, North Africa, Afghanistan, and Pakistan Economic Update that the Kingdom’s economy expanded 3.9 percent in the first half of 2025, buoyed by increased oil production and sustained growth in services.
The pace is set to quicken further, with growth expected to reach 4.3 percent in 2026 and 4.4 percent in 2027.
The World Bank’s latest outlook aligns with projections from other institutions. The International Monetary Fund in July forecast Saudi Arabia’s economy to grow 3.6 percent this year and 3.9 percent in 2026, while the Organization for Economic Cooperation and Development in September raised its 2026 estimate for the Kingdom to 3.9 percent, from 2.5 percent previously.
“In Saudi Arabia, real GDP grew by 3.9 percent during the first half of 2025 and is forecast to grow by 3.2 percent for all of 2025. This is a major increase from the 2 percent growth rate of 2024 — driven by oil production expansion and strong non-oil sector growth, particularly for services,” said the World Bank in the latest report.
