Saudi’s Non-Oil Activities Record “50%” of GDP in 2023
In an unparalleled achievement, Saudi’s non-oil activities recorded its highest-ever contribution to the Gross Domestic Product (GDP) in 2023, reaching an impressive 50%. This milestone, as analyzed by the Ministry of Economy and Planning based on data from the General Authority for Statistics (GASTAT), signifies a historic peak in the diversification of KSA’s economy. The total value of the non-oil economy soared to 1.7 trillion riyals at constant prices, propelled by sustained growth in investment, consumption, and exports. This surge indicates Saudi Arabia’s effective policies and initiatives to boost non-oil sectors as economic growth drivers.
Investment & Sectoral Growth in Saudi’s Non-Oil Activities
The record contribution has been significantly influenced by an unprecedented performance in non-governmental investment over the last two years, which witnessed a 57% growth rate. The value of non-governmental investments reached a historic high of 959 billion riyals in 2023. This underscores the vitality and confidence in the Saudi economy’s diverse sectors.
Among the leading activities, the arts and entertainment sector achieved an exceptional growth of 106% during 2021/2022. Additionally, sectors such as accommodation and food services recorded strong growth rates of 77%. Similarly, transportation and storage also saw a significant increase, with growth rates reaching 29%.This exceptional growth across various non-oil activities in 2023 highlights KSA’s strategic approach towards economic diversification and sectoral development, aiming to create a balanced and dynamic economic landscape.
Social Services and International Trade
The non-oil sector’s growth in 2023 was particularly notable for the diversity of contributions and the momentum of expansion. Social services, including health, education, and entertainment, grew by 10.8%, followed by transport and communications at 7.3%, and trade, restaurants, and hotels at 7%. This varied growth underscores the comprehensive development strategies implemented by KSA. Consequently, it focuses on enhancing the quality of life and providing a wide range of services to its residents.
Furthermore, real service exports, driven by tourist spending, saw a historical 319% growth rate over the last two years. This reflects KSA’s successful transformation into a global tourism and entertainment destination, significantly contributing to economic diversification and growth drivers.
Saudi’s Non-Oil Activities Alignment with Vision 2030
The significant increase in the non-oil sector’s contribution aligns with Saudi Vision 2030’s goal of a thriving, diversified economy. This progress confirms KSA’s success in Vision 2030’s implementation, opening new sectors to boost growth rates. Saudi Arabia’s strategic endeavors to diversify its economy and enhance non-oil sectors underscore its commitment to Vision 2030. Furthermore, they position KSA as a leading example of comprehensive and sustainable economic development on the global stage.
Related Topics:
Saudi’s Non-Oil Sector Shows Significant Rebound in Feb.
GASTAT: Saudi Witnesses Remarkable Increase in Non-Oil Exports
2023: Saudi Non-Oil Revenues Increase by 11%
