Saudi GDP Grew 3% in Q1 as Council Reviews Geopolitical Risks

Saudi Arabia's economy grew 3.0% in the first quarter, driven by oil and non-oil activity as well as government services, the Council of Economic and Development Affairs said after a meeting Wednesday. The council reviewed a periodic report from the Ministry of Economy and Planning that assessed the global economic outlook and the impact of regional geopolitical tensions on the national economy, state-run news agency SPA reported.

The report highlighted the kingdom's financial resilience and the logistics sector's ability to manage crises. It pointed to proactive government measures that have safeguarded food security and kept supply chains running through alternative routes. The council said ongoing regional developments will not halt major development projects.

Annual inflation declined in the first quarter. The non-oil private sector index rose. The trade balance improved. Those numbers reinforce a picture of an economy that absorbed external shocks better than many had expected.

The council also reviewed the Digital Content Council's annual report for fiscal year 2025. That report covered the sector's direct contribution to GDP, revenues, and market size, along with key achievements of the Digital Content Program. The program aligns with Saudi Vision 2030 objectives.

On the procedural side, the council examined a draft guideline for government entity models and a draft national policy to enhance emergency safety in public places and workplaces. It was briefed on outcomes from the committee for improving the balance of payments and economic diversification. The permanent committee for price monitoring submitted its quarterly report. The council also reviewed a summary of the quarterly real estate price index report, the monthly foreign trade executive summary, and summaries of the monthly consumer price and wholesale price index reports.

The council adopted several decisions and recommendations. The specific measures were not disclosed.

For investors tracking Saudi stocks, the council's confirmation that development projects continue despite regional tensions removes one layer of uncertainty. Government spending on logistics, food security, and digital content signals where capital flows will concentrate. The digital content sector's direct contribution to GDP and market size was part of that review.

The geopolitical risk remains the variable that could shift the council's stance. The report itself acknowledged it. The council's action Wednesday was to reaffirm the current path.