Saudi Arabia gears up for stronger growth

KINGDOM EXPECTED TO GROW BY 3.5% IN 2025, 4.2% IN 2026

- BY JUSTIN GEORGE VARGHESE

Saudi Arabia is setting its sights on stronger economic growth in 2025 and 2026, driven by a combination of robust non-oil activity and improving oil prospects.

According to Riyad Capital's latest outlook, the Kingdom's economy is expected to grow by 3.5 per cent in 2025 and 4.2 per cent in 2026, with momentum building on both sides of the economic spectrum.

The anticipated pickup in oil sector activity comes after Opec's decision to accelerate the unwinding of voluntary output cuts in the second half of 2025.

Riyad Capital expects this move to support a 3.5 per cent expansion in Saudi oil activities in 2025, followed by a more pronounced 5.4 per cent growth in 2026.

While oil prices have been soft recently, the forecast hinges on the production boost driving sectoral gains rather than immediate price spikes.

Spending-driven fiscal policy