SAUDI ARABIA’S NON-OIL ECONOMY REACHES 50 PERCENT OF REAL GDP

Saudi Arabia’s economic landscape witnessed a significant transformation in 2023, with the non-oil economy reaching a historic milestone, contributing 50 percent to the country’s real GDP. According to the General Authority for Statistics, the growth was supported by robust investment, consumer spending and exports. The value of the Kingdom’s non-oil economy reached SAR 1.7 trillion (around $453 billion) at constant prices, led by a surge in private-sector investment, which grew to a record high of SAR 959 billion in 2023, a 57 percent increase over the past two years. Various sectors contributed to this unprecedented non-oil growth. Arts and entertainment activities led the charge with an exceptional 106 percent gain in 2021 and 2022. Accommodation and food saw a 77 percent increase, while transportation and storage expanded 29 percent.

Social services, including healthcare, education and entertainment, saw a substantial increase of 10.8 percent. Transportation and communication grew 7.3 percent, while trade, restaurants and hotels grew by 7 percent.

Service exports experienced an unprecedented growth of 319 percent over the previous two years. This surge reflects Saudi Arabia’s successful transformation into a global tourism and entertainment destination, contributing significantly to economic diversification and growth of the non-oil economy.

The growth in the kingdom’s non-oil sector aligns with the objectives of Saudi Vision 2030, which aims to achieve sustainable development by diversifying its economy.