Non-oil Saudi Activities to Boost GDP by 5.9% in 2023

The Saudi Ministry of Finance expects a 5.9% growth in the gross domestic product of non-oil activities this year. This is in light of the positive performance of economic indicators during the first half of the current year.

In the preliminary statement of the 2024 budget, the ministry stated that this growth is driven by wholesale and retail trade, restaurants and hotels as the new amendments to the tourism-targeted visit visa regulation contributed to increasing the number of visitors and tourists reflecting positively on private consumption rates.

The first quarter of this year recorded the highest quarterly rate of tourists from outside the Kingdom, estimated at 7.8 million tourists, about 64% compared to the first quarter of 2019.

The ministry expects a 0.03% growth in the real GDP in 2023 due to a voluntary decline in oil production and supported by the growth of the domestic product of non-oil activities.

Furthermore, it expected the growth of manufacturing activity during 2023, as the average index of industrial production reached a growth of about 1% from the beginning of the year until July. This is driven by the increase of the number of factories that started production from the beginning of this year until July to reach 569 factories, with a total investment of about 16.3 billion riyals.

“Reading the preliminary statement for the Saudi 2024 budget contends the continuation of the financial sustainability program in the Kingdom,” said Imam Muhammad Makkani, a finance and investment university professor.

The financial sustainability program is linked to the expansionary fiscal process, which proceeds to increase and finalise key economic projects in Greater Saudi Arabia and being a source of targeted non-oil activities, added Makkani in an interview with Al-Arabiya.

He explained that the expected 1.251 trillion riyals volume of spending in 2024, will rise to 1.300 trillion riyals next year then to 1.368 trillion riyals.

Makkani pointed out that the heightened spending reflects the continuity of the financial sustainability program to achieve the Vision 2030 goals.

2024 preliminary estimates indicate a real GDP growth of 4.4%, backed by the GDP growth of non-oil activities. The private sector is still expected to lead economic growth, contribute to increasing business opportunities, create jobs in the labor market and improve the trade balance. Moreover, it is expected to continue implementing programs and initiatives to achieve Saudi Vision 2030, regional strategies, and major development projects, and achieve positive growth rates during 2024 and in the medium term.

Saudi Arabia leads region’s economies with a GDP exceeding $1 trillion

Saudi Arabia Extends Voluntary Oil Production Cut to September

Saudi Minister of Finance Meets with Singapore Deputy Prime Minister and Minister of Finance

Short link :

Related Stories

Back to top button