In a significant economic milestone, Saudi Arabia’s non-oil sector contributed over 50% to the Kingdom’s Gross Domestic Product (GDP) in 2023, marking the highest level ever recorded. This announcement, made by the Ministry of Economy and Planning, underscores the transformative impact of diversification efforts on the Saudi economy.
GDP-Robust Growth Driven by Investment, Consumption, and Exports
The total value of the non-oil economy reached an impressive $453 billion at constant prices in 2023, propelled by sustained growth in investment, consumption, and exports. This robust performance reflects the success of strategic initiatives aimed at reducing reliance on oil revenues and promoting economic diversification.
Historic Surge in Non-Governmental Investments
One of the most notable achievements in the non-oil sector was the unprecedented growth in non-governmental investments over the past two years. With a remarkable growth rate of 57%, their value surged to a historic high of $255 billion in 2023. This surge highlights growing confidence among private investors and underscores the attractiveness of Saudi Arabia as a destination for business and investment.
Emergence of Arts and Entertainment as Key Drivers
Arts and entertainment emerged as significant drivers of growth in the non-oil sector, with their value more than doubling in the period of 2021-2022. This surge reflects the Kingdom’s commitment to nurturing a vibrant cultural scene and enhancing leisure and entertainment offerings for residents and visitors alike. Additionally, sectors such as accommodation, food, transport, and storage services recorded impressive growth rates, further diversifying the economy and contributing to its resilience.
Diverse Contributions to Growth
The growth in non-oil activities during 2023 was characterized by its diversity and momentum across various sectors. Social services, including health and education, experienced growth of 10.8%, underlining the government’s commitment to enhancing the quality of life for its citizens. Similarly, sectors such as transport and communications, as well as trade, restaurants, and hotels, contributed significantly to overall economic expansion, reflecting a broad-based approach to development.
Tourism as a Catalyst for Economic Diversification
Real service exports, represented by tourist spending, witnessed historic growth rates of 319% over the past two years. This surge underscores the Kingdom’s transformation into a global destination for tourism and entertainment, further advancing the process of economic diversification. The tourism sector’s robust performance highlights Saudi Arabia’s rich cultural heritage and its appeal as a leisure destination, driving growth and job creation.
Aligning with Saudi Vision 2030
The increase in non-oil economic activity as a proportion of total GDP aligns closely with the objectives of Saudi Vision 2030. This ambitious roadmap aims to achieve a prosperous economy by diversifying growth engines away from hydrocarbons, promoting innovation, and fostering a thriving private sector. The milestone achievement in 2023 reaffirms the Kingdom’s commitment to realizing the vision’s goals and securing a sustainable and prosperous future for its citizens.
Also Read
Ramadan Witnessed: Hundreds Engage in Taraweeh Prayers as UAE Commences.
Launching on Friday: Fourth Charity Campaign in Saudi Arabia
