Saudi Arabia’s economy is projected to grow by 3 percent in 2025, according to the International Monetary Fund (IMF) in its April report, which has revised its previous estimate of 3.3 percent downward.
In its World Economic Outlook Report, the IMF has also lowered its projections for Saudi Arabia’s GDP growth in 2026 to 3.7 percent, down from an earlier forecast of 4.1 percent. The report indicates that Saudi Arabia’s real GDP is expected to grow by 3 percent in 2025, with a subsequent acceleration to 3.7 percent in 2026.
Global economic trends impacting growth
The IMF anticipates a slowdown in global growth due to shifts in policies and increased uncertainty, while global inflation is expected to decline. However, the organization has upgraded its growth projections for several countries.
The rapid escalation of trade tensions and elevated levels of policy uncertainty are likely to impede growth. This shift in policies may result in a sudden tightening of global financial conditions and capital outflows, which could particularly affect emerging markets, as noted in the report.
Saudi Arabia’s digital infrastructure progress
Earlier in April, the IMF highlighted Saudi Arabia’s prominent position in the number of data centers among Gulf Cooperation Council (GCC) countries, underscoring the Kingdom’s substantial advancements in digital infrastructure. This progress is closely associated with the swift growth in data and artificial intelligence sectors, spearheaded by the Saudi Data and Artificial Intelligence Authority (SDAIA). This national entity is responsible for development, processing, and regulatory initiatives in collaboration with relevant sectors.
Commitment to data governance
The IMF also praised the Kingdom’s enactment of the Personal Data Protection Law, which reflects Saudi Arabia’s dedication to robust data governance and privacy. This law aims to establish a dynamic regulatory framework that aligns with technological advancements while protecting individual and institutional rights in accordance with global standards.
