World Bank ups Saudi Arabia’s 2025 growth forecast to 3.8%

The Kingdom of Saudi Arabia's flag

The World Bank raised its forecast for Saudi Arabia’s economic growth in 2025 to 3.8%, up from its previous estimate of 3.2% issued last October, according to its latest report on Gulf economies.

The bank noted that Saudi Arabia is experiencing renewed economic momentum supported by growth in both the oil and non-oil sectors.

It expects that ongoing reforms under Vision 2030, along with recent updates to foreign ownership regulations, will enhance the Kingdom’s investment environment and attract additional capital inflows.

The bank added that the recent decline in oil prices has widened the fiscal deficit; however, the Kingdom continues to benefit from low levels of public debt in meeting its financing needs. Recent debt issuances have raised the debt-to-GDP ratio to approximately 32%.

According to data available on Argaam, the Ministry of Finance projected in the 2026 preliminary budget that the real GDP would grow by 4.4% in 2025, and by 4.6% in 2026.