Saudi Arabia’s non-oil economy accounts for 55% of GDP

 

Saudi Arabia’s economic transformation increasing share of non-oil sectors in GDP  

Saudi Arabia’s economic transformation under Saudi Vision 2030 continued to accelerate in 2025, with the non-oil sector accounting for around 55% of GDP and the private sector contributing 51%, according to the latest annual report.

The figures highlight a significant shift toward a more diversified economy, driven by regulatory reforms and increased private sector participation. The non-oil economy grew by 4.9%, reflecting steady progress away from oil dependency.

Private sector activity expanded notably, rising to 51% of GDP—an increase of four percentage points. Small and medium-sized enterprises (SMEs) also played a growing role, contributing 22.9% to GDP.

Commercial momentum remained strong, with more than 1.8 million active business registrations recorded, including 259,000 new entries and over 13,000 foreign companies. Entrepreneurship indicators improved as well, with more firms listing on financial markets and franchise activity increasing. The Kingdom climbed to 23rd globally in entrepreneurship rankings, a sharp rise from 83rd in 2021.

 

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Financial support mechanisms continued to underpin growth. The Kafalah Program issued guarantees worth SR93 billion, enabling over 27,000 businesses to access financing totaling SR130.6 billion. Meanwhile, the National Development Fund emphasized directing capital toward high-impact sectors, boosting job creation and economic productivity.

Investor confidence in Saudi startups surged, with venture capital investment increasing 25-fold between 2018 and 2025.

On the global front, the Saudi Export-Import Bank supported exports through SR116 billion in credit facilities. Non-oil exports reached a record SR622.87 billion, reinforcing diversification efforts.

Saudi Arabia also improved its international standing, ranking 17th in the IMD World Competitiveness Yearbook after implementing more than 1,000 reforms through the Saudi Competitiveness and Business Centre in collaboration with dozens of government bodies.

The digital economy expanded rapidly, with artificial intelligence-related registrations rising 34% to more than 19,000. The Saudi Business Center supported this shift by delivering over 10 million services and streamlining licensing processes.

 

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Labour market indicators showed continued improvement, with more than 222,000 securing jobs through programs run by the Human Resources Development Fund. The unemployment rate fell to 7.2%, down significantly from 12.3% in 2016.

Overall, the data reflects steady progress in Saudi Arabia’s transition toward a diversified, private sector-led economy, with SMEs, exports, and digital innovation playing central roles in sustaining growth.

Source: Arabian Business