Saudi Arabia hits important economic milestone: Non-oil activities at 50% of GDP

Saudi Arabia hits important economic milestone: Non-oil activities at 50% of GDP

Image credit: Getty Images Saudi Arabia’s economy has reached a key economic milestone as the non-oil sector activities comprised 50 per cent of the country’s real GDP in 2023. This is the highest share ever recorded in the country’s economic activity makeup. This achievement, analysed from data provided by the General Authority for Statistics and the Ministry of Economy and Planning, underscores the kingdom’s ongoing economic diversification efforts. Consumer spending, private investment push non-oil economy The non-oil economy, valued at SAR1.7tn (approximately $453bn) at constant prices, has been buoyed by growth in investment, consumer spending, and exports. Private-sector investment, in particular, has surged by 57 per cent over the past two years, reaching a record high of SAR959bn ($254bn) in 2023. Leading the charge in non-oil activities are arts and entertainment, which saw an exceptional 106 per cent growth between 2021 and 2022. Other sectors, including accommodation, food services, transportation, and storage, also experienced robust growth, expanding by 77 per cent and 29 per cent, respectively. The growth in non-oil activities spans various sectors, with social services, transportation, communication, and trade, restaurants, and hotels all registering significant increases. Notably, real service exports, driven primarily by tourist spending,