Saudi economy to record second-highest global growth rate in 2025

One of the most important indicators for foreign direct investors is the growth rate of the economy. Saudi Arabia has maintained its status within the G20 club.

Despite geopolitical developments in the region and worldwide, the International Monetary Fund has increased its growth forecast for Saudi Arabia’s economy by 0.5 percent, to 6 percent for 2025, up from the 5.5 percent predicted in January.

For some time we at BMG have highlighted that Saudi Arabia, India, and Indonesia enjoy the highest economic growth rates among the G20 economies. The latest IMF forecast indicates that the Saudi economy is expected to record the second-highest growth rate in 2025, following the Indian economy, which is projected to achieve a growth rate of 6.5 percent.

It is worth noting that the IMF has raised its forecast for the Saudi economy’s growth rate for 2025 for the second time this year. In its World Economic Outlook report released this month, the IMF indicated that the baseline forecast for the global economy is 3.2 percent growth for 2024 and 2025, maintaining the same pace as in 2023. The report pointed out that the global recovery is steady but slow and varies by region.

Despite geopolitical developments in the region and worldwide, the International Monetary Fund has increased its growth forecast for Saudi Arabia’s economy by 0.5 percent, to 6 percent for 2025, up from the 5.5 percent predicted in January.

In a related matter, the Kingdom’s National Competitiveness Center and the World Bank Group recently announced in Washington their intention to establish a knowledge center in Saudi Arabia, as part of their efforts to promote the culture of economic reforms globally.

World Bank Group officials emphasized that this decision confirms the significant progress made by Saudi Arabia in global competitiveness reports and indicators, which has resulted from the economic reforms implemented with the support and directives of Crown Prince Mohammed bin Salman.

The announcement ceremony was attended by Majid Al-Qasabi, Saudi minister of commerce and chairman of the National Competitiveness Center; Princess Reema bint Bandar, Saudi Arabia’s ambassador to the US; and Ajay Banga, president of the World Bank Group.

During the 16th BMG Financial Group’s Economic Forum on July 3 at the London Stock Exchange, we will host a special panel discussing the IMF’s latest forecast and hear from global and Saudi economists sharing their views in line with the forum’s theme: Why Saudi and Why Now?

Basil M.K. Al-Ghalayini is the chairman and CEO of BMG Financial Group.