Saudi Arabia’s gross domestic product (GDP) grew 2.8% year-on-year in the third quarter, with a strong push from non-oil activities, official data shows. The General Authority for Statistics (GASTAT) reports that the Kingdom’s non-oil sector surged 4.2%, aligning with Vision 2030’s diversification goals.
Non-Oil Sector Outpaces Oil Growth
The oil sector saw a modest growth of 0.3%, while government activities increased by 3.1% year-on-year in Q3. On a quarterly basis, the Kingdom’s seasonally adjusted GDP rose 0.8%, with non-oil activities up by 0.5% and oil activities climbing by 1.5%. Government activities, however, declined slightly by 0.3% from the previous quarter.
Global Institutions Forecast Saudi Growth
The International Monetary Fund (IMF) projects Saudi GDP to grow 1.5% in 2024, accelerating to 4.6% in 2025. Similarly, the World Bank predicts a 1.6% rise this year and 4.9% by 2025. These forecasts surpass Saudi Arabia’s pre-budget projection of 0.8% for 2024, backed by a 3.7% expected increase in non-oil activities.
Non-Oil Exports See Strong Gains
In August, Saudi non-oil exports, including reexports, grew 7.5% year-on-year, reaching SR27.52 billion. Month-on-month, non-oil exports rose by 8.13%, underscoring the sector’s role in economic resilience. Saudi Finance Minister Mohammed Al-Jadaan recently highlighted non-oil GDP’s rising significance, now comprising 52% of the economy.
Positive Outlook Amid Global Challenges
A Reuters poll anticipates a 1.3% GDP growth for Saudi Arabia in 2024, slightly below the IMF’s forecast but reflecting resilience amid lower oil prices. S&P Global, in its recent report, forecasts 1.4% growth next year, increasing to 5.3% in 2025, driven by the Kingdom’s commitment to reducing oil dependency.
Saudi Arabia’s economic outlook remains optimistic, supported by robust non-oil growth and a diverse economy envisioned in Vision 2030.
