RIYADH: The Kingdom’s efforts to diversify its economy under Vision 2030 have been successful, as evidenced by the strong increase of 5.3% in non-oil industrial activity in 2024.
However, according to the most recent data from the General Authority for Statistics, the total Industrial Production Index fell by 2.3 percent, primarily due to a 5.2 percent drop in oil-related activities. Saudi Arabia’s expanding non-oil industrial production is achieving a major Vision 2030 objective: diversifying income and employment sources beyond oil.
Manufacturing, logistics, and technology are expanding due to reforms, including simpler licensing, tax breaks, and large-scale projects. Despite oil’s continued volatility, the private sector’s progress is beginning to show promise, thanks to an increase in foreign direct investment.
The non-oil economy is predicted to rise by 4.8 percent this year, according to Saudi Economy and Planning Minister Faisal Al-Ibrahim, who announced this at the Davos Conference in January.
According to the most recent GASTAT data, manufacturing was a major contributor to growth in 2024, with an annual gain of 4.7 per cent. While the production of chemicals and chemical products, as well as coke and refined petroleum products, climbed by 2.8 percent, food production increased by 6.2 percent.
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