World Bank Lifts Saudi Arabia’s 2025 GDP Growth Outlook to 5.9%

Saudi Arabia a well-known business hub drastically boosts the economic outlook. World Bank revised its GDP growth forecast to 5.9% by the year 2025. This economic outlook indicates the Kingdom’s potential, for economic growth and resilience.

Scratch the Reasons

There are a lot of factors which serves in contribute to Saudi Arabia’s Economic momentum. One would be the Saudi government’s diversification initiatives, which are a component of Vision 2030. This roadmap also aims to reduce the dependency of the Kingdom on oil revenues. And also serves as a key factor in generating growth in the entertainment, technology, and tourism sectors.

Future Outlook

The Kingdom’s projects are serving a lot in economic development. Additionally, these projects will also serve as a major factor in attracting foreign investors to the kingdom and job creation in the kingdom for fostering success and innovation. The mega-projects of the kingdom not merely bolster the economy but speak the Saudi Arabia’s marvelous success and innovation. Saudi Arabia will be the region’s center for trade and business. Moreover, the commitment of the country to economic reforms, and smoothening out the regulatory matters increased the business environment in the Kingdom. Saudi Arabia is determined to unlock its economic potential by introducing new laws and facilitating foreign investment.

Dive into Numbers

World Bank raised expectations for economic growth from 4.2% which was predicted in January to 5.9% in 2025. As per the latest report, the Bank revised the forecast of 2024 for the growth of gross domestic product for the Kingdom low down to 2.5% from the prior forecast which was 4.1%.

Overall, the forecast of GDP growth for GCC regions reduces to 2.8%, down from 3.6% in 2024. Meanwhile, according to the 2025 forecast, it revises to 4.7% from 3.8%. The economy of Kuwait is expected to boost by 2.8% by the year 2024 and further increase by 3.1% in the year 2025.  Similarly, the economy of Bahrain will grow during 2024 forecast from 2.5% to 2.1%. And the revised increased during 2025 to 3.2% from 2.1%. Meanwhile, the economy of Qatar faces a downward revision from 2.5% to 2.1% in 2024. And also the upward revision during 2025 is to 3.2% from 2.1%. The economy Projection in Oman for 2024 and 2025 has increased by 0.1% since the forecast of January.

Furthermore, the adjustments indicate the economic trends in the increase in oil prices in 2022 following Russia’s invasion of Ukraine. It supports Middle Eastern and North African oil-exporting companies. In comparison, the growth in non-oil exporting nations like Jordan, Morocco, Djibouti, Tunisia, and in Gaza and the West Bank slowed down. During 2024, the expectation for the distribution among developing oil importers and GCC oil exporters narrows by 0.9%. As the report indicates, Marketing is an important shift from 2022 when the growth of GCC is 5.9% faster. Developing oil exporters will grow about 2.8% during 2024 which is lower than 3.1% during 2023. There’s a projection to decrease growth in developing oil importers  by 2.5% in 2024 which is also less than 3.1% in 2023.

MENA region is estimated to achieve the pre-COVID target growth of 2.7% in 2024. On the other hand, developing economies and emerging markets are estimated to remain below the growth rates of pre-pandemic. And the MENA region surpasses 1.2% in 2024.

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