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Saudi Arabia's non-oil trade surplus with the GCC surged by 203.2% year-on-year in April 2025, exceeding SAR2 billion. This seismic economic shift is a clear indicator of the Kingdom's diversification success and a signal to global entrepreneurs: now is the time to enter the Saudi market.
A 200%+ leap in trade surplus is significant. In this post, we explore what Saudi Arabia’s expanding non-oil GDP means for foreign businesses, where the Kingdom’s economy is headed, and how companies can position themselves to capitalise on the growth.
According to the latest data from Saudi Arabia’s General Authority for Statistics, April 2025 saw the Kingdom’s non-oil trade surplus with Gulf Cooperation Council (GCC) countries rocket to SAR3.51 billion (approx. $935 million), up from SAR1.16 billion the previous year. That’s a growth rate of 203.2%.
This growth is part of a broader 41.3% increase in total non-oil trade with the GCC, which hit SAR18.03 billion in April. The strongest contributors? Machinery, equipment, and manufactured goods, core sectors aligned with Vision 2030’s diversification goals.
It marks a turning point in regional economic integration and underlines the Kingdom’s emerging dominance as a regional trade and innovation hub.
In parallel, the Kingdom's non-oil economy grew by 4.9% in Q1 2025, driving overall GDP growth to 3.4% even as the oil sector contracted slightly. This confirms a structural rebalancing long promoted by Vision 2030.
The International Monetary Fund (IMF) has raised its forecast for Saudi Arabia’s 2025 GDP growth to 3.5%, attributing the momentum to "strong domestic demand" and expanding private-sector activity across tourism, fintech, logistics, and entertainment.
With PMI data reaching a three-month high in June, Saudi Arabia’s private sector is thriving. New business accelerators, international trade zones, and regulatory reforms are removing barriers to entry for foreign-owned businesses.
Key sectors showing robust growth include advanced manufacturing, clean energy, digital services, and logistics. Riyadh and Jeddah are emerging as major commercial centres for regional headquarters, supported by strategic infrastructure investments and streamlined setup procedures for international companies.
DHL and Maersk have expanded their operations in the Kingdom, drawn by investments in smart warehousing and the development of special economic zones near major ports. These zones offer customs exemptions and 100% foreign ownership.
The Red Sea Project and Diriyah Gate developments are attracting global hotel chains, experience design firms, and F&B investors. These projects are supported by public-private partnerships and offer long-term leasing options for foreign companies.
Cloud providers like Google and Oracle are investing in Saudi-based data centres, supported by the Kingdom’s National Digital Transformation Plan. Tech startups are being courted with access to venture capital, mentorship, and partnerships with state entities.
Saudi Arabia’s NEOM and Green Hydrogen initiatives present openings for international firms in solar panel manufacturing, carbon capture technologies, and energy consulting. Regulatory incentives include land grants and fast-tracked permits.
When trade data, GDP numbers, and global investor sentiment all point in the same direction, it's a positive signal. The Kingdom is no longer an oil-only economy. Now is the moment to take that first step.
Peninsula is here to simplify the journey. Book your free consultation today to explore opportunities for foreign-owned businesses in Saudi Arabia and build your presence in one of the region’s fastest-growing non-oil economies.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
