The Clap
Saudi Arabia’s non-oil activities accounted for 50% of the real GDP last year, marking their highest historical level ever, according to analyses by the Ministry of Economy and Planning of data from the General Authority for Statistics.
What
The total non-oil economy of Saudi Arabia reached 1.7 trillion riyals (approximately $453 billion) at constant prices, thanks to continued growth in investment, consumption, and exports.
So What
The “historical contribution ratio” is attributed to the “unprecedented performance” of non-government investment over the past two years, with an average growth rate of 57%. Non-governmental investments reached a “historical high” of 959 billion riyals in 2023.
Some Context
Non-oil activities witnessed an “exceptional growth” in the previous year, in terms of contribution diversity and growth momentum. Social services such as health, education, and entertainment recorded a growth of 10.8%. This was followed by transport and communications (7.3%), and trade, restaurants, and hotels (7%).
This is in line with “Vision 2030,” which aims to achieve a prosperous economy by diversifying growth engines through opening up new sectors that contribute to raising growth rates.
Now What
Standard & Poor’s maintained its credit rating for the Kingdom at “A/A-1,” with a stable outlook. The agency attributed this in its report to the continuation of economic and social reforms in the country in recent years. These reforms have led to the resilience of the national economy, growth in the non-oil sector, and an increase in public financial revenues.
Standard & Poor’s also expected the GDP growth rate to average 3.3% in the years 2024-2027. The fiscal deficit is projected to reach 2% of GDP during the same years.
