Economic Overview

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.

Foreign Trade

Trade represents around 58% of Saudi Arabia’s GDP (World Bank, 2025). Saudi Arabia is the world's leading oil exporter: in 2025, crude oil accounted for 53.0% of total merchandise exports and refined petroleum products for 13.0%, followed by telephones (4.7%), polyethylene (3.1%), and petroleum gas (1.9%). Imports were led by motor cars (8.4%), telephones (6.8%), refined petroleum products (4.4%), and gold (3.9% - data Comtrade). According to the General Authority for Statistics (GASTAT), non-oil exports including re-exports rose by 18.9% in 2025 to SAR 366 billion (USD 97 billion), driven by a 64.4% jump in re-exports, while national non-oil exports were stable (-0.1%). Chemical products (22.5%) and machinery and electrical equipment (22.4%) were the main non-oil export categories, and the share of oil in total exports fell from 73.1% in 2024 to 68.7% in 2025.

In 2025, China was Saudi Arabia's top export destination, accounting for 14.6% of total exports, followed by the UAE (10.0%) and India (9.4%). Exports to the top 10 destinations, also including South Korea, Japan, the U.S., Egypt, Bahrain, Poland, and Malta, made up 66.8% of total exports. China was also the primary source of imports, representing 27.5% of the total, followed by the U.S. (8.2%) and the UAE (5.7%). Imports from the top 10 countries, also including India, Germany, Japan, Italy, France, Switzerland, and Egypt, accounted for 65.9% of total imports (data GASTAT). In order to promote international trade, attract foreign investment and diversify the non-oil sectors, the government announced plans to establish four “economic cities” in different regions of the country, providing a variety of advantages to companies that choose to locate their operations within their limits.

The country's trade balance, although structurally in surplus, fluctuates depending on the price of oil and global demand. In 2025, exports totalled USD 310.7 billion against USD 254.1 billion in imports. In the same year, the Kingdom exported USD 69.4 billion worth of services, importing USD 128.7 billion (WTO). In the fourth quarter of 2025, non-oil exports, including re-exports, rose by 18.6% year-on-year, while national non-oil exports (excluding re-exports) dropped by 1.5%. Re-exported goods saw a 67.4% increase. Merchandise exports grew by 7.9% on the back of a 3.5% increase in oil exports, with the share of oil exports falling from 70.4% in Q4 2024 to 67.5% in Q4 2025. Imports rose by 4.7%, leading to a 26.3% increase in the merchandise trade balance surplus (data GAS). The overall trade balance was estimated to be positive by 1.6% of GDP in 2025 by the World Bank (from 2.4% one year earlier). For the full year 2025, merchandise exports rose by 2.1% to SAR 1,170 billion, while imports increased by 8.8% to SAR 949.8 billion, narrowing the trade surplus by 19.2% to SAR 220.2 billion (GASTAT).