Saudi GDP grows rapidly in Q2, driven by non-oil
COMMERCIAL NEWS
Saudi Arabia’s real GDP grew 3.9% y-o-y in Q2 2025, driven by a 4.7% increase in non-oil GDP, according to flash estimates by GASTAT. Oil GDP also rose 3.8% y-o-y, a report said.
Saudi Arabia posted a SAR34.5 billion fiscal deficit in Q2 2025, narrower than Q1’s SAR58.7 billion deficit. Revenues fell 14.7% y-o-y to SAR301.6 billion, while expenditure declined 8.9% yo-y to SAR336.1 billion, said Al Rajhi Capital research report.
The non-oil private sector remained in expansion mode, with PMI edging up to 56.4 in August from 56.3 in July.
Non-oil exports rebounded 22.1% y-o-y in June vs 6.9% in May, with Transport Equipment up 19.3%. Total exports (including oil) rose 3.7% y-o-y to SAR 92.1 billion, driving a 10.6% y-o-y increase in the trade balance.
Index of Industrial Production (IIP) rose 7.9% y-o-y in June to 111.9 (vs. 103.7 a year earlier), driven by higher activity in utilities and waste management.
Saudi Arabia’s crude output reached 9.60mbpd in August 2025, up 6.8% y-o-y. Brent prices averaged $66.7 in August, down 2.8% m-o-m and 11.8% y-o-y amid supply growth.
Consumer price index (CPI) eased to 2.14% y-o-y in July (vs. 2.27% in June), driven by a 5.63% rise in rental prices. Wholesale price index (WPI) held steady at 2.10% y-o-y.
Total consumer spending surged 15.4% y-o-y to SAR135 billion in July. E-commerce rose 79.4%, while Jewelry and Laundry Services recorded the sharpest POS growth.
Cement sales
Cement sales by Saudi Arabia’s 17 producers rose 8.0% y-o-y to 4.7 million tons in July, compared to 4.4 million tons a year earlier.
Meanwhile, credit grew 0.9% m-o-m in July (15.2% y-o-y), driven by corporate loans. Deposits fell 0.3% m-o-m (8.4% y-o-y), weighed by government deposits, while M3 declined 0.3% m-o-m (8.4% y-o-y). - TradeArabia News Service
