Saudi Arabia’s economic outlook has improved, with the International Monetary Fund raising its growth forecast as OPEC+ production cuts ease. The nation’s economy is now expected to expand by 3.5% this year, up from an earlier estimate of 3%, and by 3.9% in 2026.
The IMF highlighted Saudi Arabia’s resilience, noting growth in non-oil sectors, stable inflation, and historically low unemployment. The country is actively reducing its reliance on oil by investing in technology, real estate, tourism, and infrastructure, aligning with its Vision 2030 strategy.
Efforts to diversify are driving job creation and boosting the non-oil economy, which is projected to rise by 3.4% in 2025 following strong performance last year. Continued investment and credit growth are expected to support domestic demand and help cushion lower oil prices.
Oil markets remain volatile due to factors such as international trade tensions and geopolitical conflicts. OPEC+ members, including Saudi Arabia and Russia, have recently agreed to increase oil production, influencing price trends.
Looking ahead, domestic demand and the anticipation of large international events, including Expo 2030 and the FIFA World Cup in 2034, are set to push non-oil growth near 4% by 2027 before stabilizing. The IMF also expects inflation to stay low, around 2%, thanks to currency stability, subsidies, and ongoing economic expansion. Fiscal deficits are predicted to narrow as spending becomes more efficient.