Panorama econòmic

Economic indicators

Saudi Arabia is the largest economy in the Middle East and the richest Arab country. The policy of large-scale public works undertaken by the authorities, as well as foreign direct investment and the soundness of the banking and financial system, have enabled the country to become the number one regional economy and one of the largest in the world. However, the economy of Saudi Arabia is almost entirely based on oil, with GDP growth being closely linked to real oil growth. After a recession in 2023 (-0.8% of GDP) due to oil production cuts and lower oil prices, the kingdom returned to growth in 2024 and accelerated sharply in 2025, with real GDP increasing 4.5% compared to the previous year, according to government data. Non-oil growth remained robust, rising by 4.9%, while oil activities rebounded by 5.7% and government activities grew by 0.9%. According to the World Bank, overall GDP growth is projected to average 4.6% per year over 2026-2027, as the voluntary Opec+ oil production cuts continue to be unwound, with non-oil GDP rising by an average of 3.6% per year over the same horizon.

Concerning public finances, the 2025 budget deficit came in at SAR 276.6 billion, wider than the 5.3% of GDP the finance ministry had estimated in September 2025, as spending growth outpaced revenue growth, which was constrained by a roughly 20% fall in oil revenues to SAR 606.5 billion. In the 2026 state budget, authorities forecast a fiscal deficit of SAR 165 billion (USD 44 billion), as the kingdom continues spending on large-scale gigaprojects to diversify its economy away from oil. The deficit aligns with the finance ministry's pre-budget statement, representing about 3.3% of GDP. Public debt rose to SAR 1.52 trillion at the end of 2025, up from SAR 1.22 trillion at the end of 2024, according to the Ministry of Finance. Government deposits at the Saudi Central Bank (SAMA), including the current account and fiscal reserve, were estimated at 10.3% of GDP at the end of 2024. Contingent liabilities are rising as government-related entities (GRE), particularly the Public Investment Fund (PIF), increase borrowing, but remain small relative to GRE assets (PIF debt was 4.4% of its assets at the end of Q3 2024). Saudi Arabia's inflation in 2025 increased to 2.1% compared to the previous year, according to data from the General Authority for Statistics (GASTAT). The cost-of-living index stood at 111.30 points in 2024, based on the 2018 reference year, up from 109.45 points in 2023.

The standard of living in Saudi Arabia is one of the highest in the Middle East, with a GDP per capita (PPP) of USD 73,784 (World Bank, 2025). According to the latest data available from the Saudi General Authority for Statistics,  unemployment among Saudis stood at 6.4% as of the first quarter of 2026, while the overall unemployment rate stood at 3.1%. The unemployment rate hit historic lows, with women’s labour force participation remaining well above the 30% target for 2030.

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