RIYADH: The World Bank has upgraded its 2025 economic growth forecast for Saudi Arabia to 3.8 percent, an increase from its previous estimate of 3.2 percent, citing renewed momentum in both oil and non-oil sectors.
In its latest Gulf Economic Update, the bank noted that while softer oil prices have widened the Kingdom’s fiscal deficit and raised its debt-to-GDP ratio toward 32 percent, Saudi Arabia benefits from low overall public debt.
“Economic momentum is strengthening across oil and non-oil sectors,” the World Bank said, adding that “ongoing Vision 2030 reforms and liberalized foreign ownership rules should support investment inflows.”
It noted that historical data showed that while all GCC countries are pushing forward with diversification plans, those that are “demonstrating the benefits of early and sustained diversification are still reaping the benefits.”
The recent upward trends in Saudi Arabia and Kuwait are promising, according to the Group, indicating that policy reforms are starting to take effect. “Continued monitoring of non-oil GDP shares will be essential to assess the success of these transformative reforms,” it added.
