The private and government sector fuels growth as Vision 2030 projects attract record investment.
RIYADH, Saudi Arabia – Saudi Arabia’s economy is accelerating as businesses and the government pour money into new projects at a rapid pace. New data shows spending on factories, infrastructure, and equipment surged by 10.3% in early 2025 compared to last year, signaling strong confidence in the kingdom’s economic future.
Private companies are driving this boom, responsible for 94% of all major investments. Their spending jumped 10.3%, while government projects grew even faster at 11.6%. This wave of investment is transforming Saudi cities, with construction cranes dotting skylines and new industrial zones opening across the country.
The growth comes as Saudi Arabia’s Vision 2030 plan to diversify beyond oil shows concrete results. Non-oil sectors like real estate and manufacturing are thriving, with home prices rising 5.1% as demand increases.
With inflation remaining low at 2.2% and new projects breaking ground weekly, international investors are taking notice. The report revealed investment has already blown past 2024 targets by 38%, suggesting the economy is heating up faster than expected.
Source: Ministry of Investment, Saudi Arabia
