MEcon | December 2025 Edition

Saudi Arabia 

Saudi Arabia’s real GDP grew 4.8% YoY in Q3 2025 reaching SAR1.2 Tn, driven by strong performance across all sectors. Despite this growth, the unemployment rate edged up slightly to 3.4% in Q3 2025. Meanwhile, the Kingdom advanced initiatives to enhance quality of life, including major road upgrades and metro line expansion in Riyadh, a General Policy for Youth Development, and a mandatory e-salary system to protect domestic workers’ wages.

UAE

The UAE’s economic diversification is delivering results, with non-oil activities accounting for 77.6% of GDP in Q2 2025. The UAE is progressing as a global finance and trade hub, reflected in Dubai’s doubling of hedge fund registrations, Abu Dhabi’s Al Maryah district expansion, the Global Centre of Trade programme, and free trade talks with the EU. Meanwhile, the country’s space ambitions are shifting from prestige projects to practical infrastructure, with a USD 12 Bn investment to build independent satellite networks.

Qatar

Qatar’s economy grew by 2.9% in Q3 2025, driven by a 4.4% rise in non-hydrocarbon activities. The Qatari Ministry of Finance is projecting a budget deficit of QAR 20.8 Bn for 2026 following recorded deficits throughout 2025, primarily attributed to low energy prices. Meanwhile, Qatar and Saudi Arabia also announced a high-speed rail link between Riyadh and Doha, expected to be completed in the next six years. 

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