Saudi non-oil economy hits record $453bn at constant prices
RIYADH, March 16, 2024
Non-oil activities in Saudi Arabia have achieved a historic milestone, reaching a 50% share of the country's real GDP in 2023, the highest level on record, according to an analysis of the General Authority for Statistics data by the Ministry of Economy and Planning.
This translates to a non-oil economy valued at SAR1.7 trillion (approximately $453 billion) at constant prices, fueled by consistent growth in investment, consumer spending, and exports.
The significant contribution from non-oil sectors is attributed to a surge in private-sector investment over the past two years, with a remarkable growth rate of 57%.
According to the report, this has pushed private investment to a record high of SAR959 billion ($254 billion) in 2023 with arts and entertainment activities leading the pack with an exceptional 106% growth between 2021 and 2022.
The other sectors like accommodation, food services, transportation, and storage also witnessed robust growth, expanding by 77% and 29%, respectively.
"The growth in non-oil activities during 2023 is noteworthy for its diversity and momentum across various sectors. Social services, including healthcare, education, and entertainment, saw a 10.8% increase, followed by transportation and communication (3.7%) and trade, restaurants, and hotels (7%)," stated the ministry in its report.
Real service exports, primarily driven by tourist spending, have skyrocketed over the past two years, experiencing a growth rate of 319%.
This reflects the significant impact of Saudi Arabia's transformation into a global tourism and entertainment destination, further propelling economic diversification and growth engines, it added.-TradeArabia News Service
