Saudi Arabia’s non-oil economy is forecasted to grow by 4.4% in 2025 as the Kingdom accelerates its Vision 2030 agenda to diversify from oil reliance, according to a PwC Middle East report. The Kingdom is aligning economic diversification with sustainability goals, including achieving net-zero emissions by 2060.
In the first half of this year, the non-oil economy expanded by 3.8%, with the non-energy private sector achieving an impressive 4.9% growth in Q2. Core sectors like trade and hospitality grew by 6.4% year-on-year, while transport, communications, finance, and business services also recorded robust gains.
“Saudi Arabia’s transformational journey combines economic diversification with sustainable growth. The Kingdom’s focus on renewable energy, advanced industries, and a green future highlights its pivotal role in the global energy transition,” said Riyadh Al-Najjar, Chairman at PwC Middle East.
The Kingdom is also leading in electric vehicle (EV) innovation. By 2026, King Abdullah Economic City aims to produce 150,000 EVs annually, scaling to 500,000 by 2030. The Electric Vehicle Infrastructure Co., a partnership between the Public Investment Fund and Saudi Electricity Co., plans to deploy 5,000 fast chargers by 2030.
Global outlooks echo PwC’s optimism: Moody’s projects 5%-5.5% non-hydrocarbon GDP growth from 2025 to 2027, while the IMF forecasts a 4.6% economic boost in 2025, fueled by diversification and non-oil private sector expansion.
Saudi Arabia’s efforts underscore its commitment to adaptability, sustainability, and economic resilience, setting a benchmark for global energy transition.