The Saudi Arabian economy recorded a 5% year-on-year (YoY) GDP growth in Q4 2025, according to the General Authority for Statistics (GASTAT). This follows a 4.5% annual GDP increase compared to 2024. The growth was driven by a 10.8% rise in oil sector activities and a 4.3% expansion in non-oil sectors, despite a 1.2% decline in government activities. The data reflects the Kingdom’s transition to the moving chain methodology for GDP calculations, which provides more accurate, real-time economic measurements by using prior-year weights and prices. This growth underscores Saudi Arabia’s economic resilience amid global uncertainties. The oil sector’s strong performance aligns with higher energy prices and production efficiency, while non-oil growth highlights diversification efforts under Vision 2030. Traders should monitor how this data influences the Saudi riyal’s value against the US dollar (USD/SAR) and regional equity markets. The government’s declining activities may signal fiscal consolidation or structural reforms. For global markets, the report reinforces confidence in the Gulf’s economic stability. MENA investors should watch for policy responses to sustain growth, particularly in non-oil sectors like manufacturing and services. The next key data point will be Q1 2026 GDP figures, which will indicate if the momentum continues.