GCC Scope
  • Home
  • Business
  • Economy
  • Politics
  • Security
  • Sport
Reading: KAPSARC Finds Saudi GDP Revision Credible Following 14.1 Percent Increase
ar ع
GCC ScopeGCC Scope
Font ResizerAa
  • Business
  • Economy
  • Politics
  • Security
  • Sport
Search
  • Home
  • Business
  • Economy
  • Politics
  • Security
  • Sport
GCC Scope > Economy > KAPSARC Finds Saudi GDP Revision Credible Following 14.1 Percent Increase
Economy

KAPSARC Finds Saudi GDP Revision Credible Following 14.1 Percent Increase

NewsDesk
Last updated: March 4, 2026 12:00 am
By
NewsDesk
4 Min Read
Share
KAPSARC Validates Saudi GDP Revision | AI-Generated Image
SHARE

The General Authority for Statistics raised Saudi Arabia’s 2023 GDP by 14.1 percent to 4.5 trillion riyals in May 2025, marking the first comprehensive revision since 2010. A KAPSARC report dated March 4, 2026, deemed the update credible, noting its alignment with physical indicators and IMF guidance while highlighting the increased non-oil GDP share of 53.2 percent.

A KAPSARC commentary authored by principal fellow Jeyhun Mikayilov examined the revision against GASTAT methodology papers, independent output metrics and international examples. The 14.1 percent increase across a 15-year gap since the prior base year proved modest compared with rebasing outcomes in Nigeria, Ghana and Kenya, according to the assessment. Construction and manufacturing drove 45 percent of the upward revision in sectors that permit relatively straightforward domestic verification rather than opaque services. The analysis determined that the changes reflect genuine measurement improvements alongside actual economic expansion.

GASTAT’s Industrial Production Index supplied independent confirmation for manufacturing gains, the KAPSARC report indicated. Physical manufacturing output rose 11 percent from 2021 to 2023, supporting both real activity increases and methodological refinements. Construction told a more nuanced story because contract awards surged 90 percent and gross fixed capital formation climbed 60 percent while cement production fell 10 percent over the period. This divergence pointed to high-value megaprojects carrying substantial import content rather than equivalent rises in local output, the commentary explained.

The International Monetary Fund’s 2025 Article IV consultation welcomed the GDP overhaul, which backfilled historical series to produce consistent long-term records. IMF staff noted that the rebased nominal GDP level stood 14 percent higher in 2024 than earlier calculations, with non-oil GDP 20 percent larger. The update incorporated recommendations from IMF technical assistance missions conducted between 2019 and 2024 and followed the chain-linked volume methodology GASTAT adopted in 2024. These adjustments aligned real and nominal figures on the new 2023 benchmark.

GASTAT attributed much of the non-oil share increase to previously undercounted activity by small and medium-sized enterprises identified through comprehensive 2023 economic, household and agricultural surveys. The authority explained that the older 2010 base year and weights had understated these segments. Revised data therefore offer policymakers a sharper tool for monitoring Vision 2030 diversification objectives. Saudi Arabia later reported 4.5 percent real GDP growth for 2025 using the updated framework.

The KAPSARC commentary stated, “For analysts and policymakers, the prudent approach is to adopt the revised series as authoritative while using physical indicators as cross-checks when assessing Vision 2030’s economic transformation.” Such verification helps distinguish measurement effects from underlying trends in non-oil sectors. The publication advised pairing value-based statistics with volume data to evaluate diversification progress accurately. This method mirrors practices followed in other countries after similar rebasing.

Saudi Arabia’s Ministry of Finance adopted the revised base in its fiscal 2025 performance reports, which showed non-oil activities expanding 4.8 percent in the first half of the year. The higher GDP denominator also improved reported debt-to-GDP ratios, according to ministry figures. Ongoing statistical upgrades include larger household surveys, new environmental statistics and steps toward Special Data Dissemination Standard Plus compliance, the IMF 2025 review observed. These initiatives extend the foundation laid by the 2025 revision and its historical backfill.

Kuwait Ministry Restores Power Nationwide After Transmission Lines Fail
Rwanga Foundation Rolls Out Solar Villages to Aid Iraq Rural Resilience
EWA Restores Power Across Bahrain After Limited Overnight Outage
Rwanga Foundation Completes Fifth Solar Village to Advance Rural Self-Reliance in Kurdistan
Saudi Public Investment Fund Doubles Net Profit on Higher Revenue in 2025
Share This Article
Facebook Email Copy Link Print

Popular News

Security

GCC Secretary-General Denounces Iranian Strikes on Kuwaiti Facilities as War Crimes

NewsDesk
By
NewsDesk
August 1, 2026
Kuwaiti Armed Forces Destroy Hostile Drones Detected in National Airspace
Kuwaiti Armed Forces Neutralise Iranian Drones in Consecutive Interceptions
Hamas Ties Gaza Disarmament to Israeli Approval of Trump-brokered Deal
Palestinian Shot in Abdomen During Israeli Settler March in Northern West Bank

More from GCC Scope

Politics

UAE Tightens Money Laundering Enforcement Through 2026 as Penalties Extend to Named Officers

By
NewsDesk
7 Min Read

Second Abu Dhabi Poetry Festival Opens With Interactive Zones to Engage Youth

By
NewsDesk
Politics

Hamas Advances Amendments in Cairo Talks on Gaza Weapons Decommissioning

By
NewsDesk
4 Min Read
Business

Kuwait’s Weight Loss Trend Points to Rising Demand for Body Contouring Surgery

Kuwait Weight Loss Trend and Body Contouring Demand | Kuwait recorded the world's highest per-capita bariatric…

By
NewsDesk
Security

Egypt Confirms Drone Attack at Damietta Port as Authority Reports Uninterrupted Operations

On Thursday, Egypt's cabinet said a preliminary investigation found a drone caused the previous day's fire…

By
NewsDesk
Security

Jordanian Air Defences Destroy Five Iranian Missiles Headed for Kingdom

Jordanian air defence systems intercepted and destroyed five missiles fired from Iran early on July 30,…

By
NewsDesk
Security

Saudi Foreign Ministry Demands Decisive Measures to Safeguard Regional Stability

Saudi Arabia's Ministry of Foreign Affairs on July 29, 2026, called for serious steps to protect…

By
NewsDesk
Security

Kuwaiti Forces Remain on High Alert After Iranian Strike Kills Worker at Northern Facility

Kuwait's Defense Ministry announced on July 30, 2026, that an Iranian attack targeted a building owned…

By
NewsDesk

Categories

  • Business
  • Economy
  • Politics
  • Security
  • Sport

Quick Links

  • About
  • Corrections
  • Editorial Policy
  • Contact
GCC Scope
© 2026 GCC Scope. Published by Peninsula News Group LLC. All rights reserved.
  • Privacy Policy
  • Terms of Use
  • Contact
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?