Non-Oil Sector Contributes 50% to Saudi Arabia's GDP in 2023

KSA, 15 March, 2024 : Saudi Arabia's economy achieved a significant milestone in 2023, with the non-oil sector contributing 50% to its real GDP for the first time. This achievement reflects the Kingdom's ongoing efforts to diversify its economy and reduce dependence on oil revenue for development.

The non-oil economy reached SR 1.7 trillion, driven by growth in investment, consumption, and exports, marking the highest historical level ever reached. This growth was primarily fueled by a remarkable 57% increase in real non-government investment over the past two years, totaling SR 959 billion in 2023.

Various sectors contributed to this investment-led growth, with notable performances seen in arts and entertainment (106% growth), food and accommodation (77% growth), and transportation and communications (29% growth). The diversity of contributions and growth momentum across sectors underscored the exceptional expansion of non-oil activities in 2023.

Specifically, social services, transportation, communications, trade, restaurants, and hotels experienced significant growth rates, reflecting the Kingdom's commitment to enhancing various facets of its economy. Service-based revenues, driven by tourist spending, recorded historic growth rates of 319% over the last two years, highlighting Saudi Arabia's transformation into a global tourism and entertainment destination.

This achievement aligns with the goals of Saudi Vision 2030, aiming for a prosperous economy through diversification and the successful implementation of relevant programs and projects. Saudi Arabia's continued focus on opening new sectors and fostering sustainable economic growth reinforces its position on the path toward economic prosperity and resilience.

Source : www.gulfnews.com