Saudi’s 2024 GDP to expand by 4.4% on non-oil growth

Saudi’s 2024 GDP to expand by 4.4% on non-oil growth

Saudi Arabia’s economic outlook will be positive this year on the back of strong non-oil activities, including higher consumer spending, according to a new analysis.

The kingdom’s gross domestic product (GDP) is on track to expand by 4.4% in 2024 despite lower oil revenues, as the non-oil economy continues to get a boost from the Saudi Vision 2030 programmes, AlJazira Capital said in its report.

“Increase in consumer spending, low unemployment levels and expansion in non-oil private sector activity point towards favourable economic conditions for the kingdom,” the Saudi investment firm’s report said.

“[The GDP will expand] on the back of growth in the private sector amid implementation of programmes under Saudi Vision 2030. Weak oil revenues would be offset by growth in non-oil revenues.”

Saudi’s forecast GDP for the full year is slightly lower than China’s (4.6%), but higher than emerging economies (4%), Euro area (1.2%) and the United States (1.5%).

Revenues from oil for the full year 2023 are forecast to fall to SAR752 billion ($200.5 billion) from a year earlier due to output cuts, but non-oil revenues are expected to climb to SAR441 billion from SAR411 billion over the same period.

The government’s expansionary spending over the medium term through the Public Investment