RIYADH: S&P Global projects that Saudi Arabia’s non-oil GDP could expand by as much as 6 percentage points by the end of the decade, largely due to the Vision 2030 initiatives.
According to the international rating agency, the non-oil economy has strengthened its position as a crucial component of the Kingdom’s economic diversification strategy over the last ten years, emphasising increasing consumer spending in the tourism and building sectors.
It projected that by 2030, the oil sector’s GDP share would have decreased from over 30% in early 2024 to between 24 and 26%, indicating a major move away from reliance on hydrocarbons.
With a combined value of over $1 trillion, a wide range of Vision 2030 megaprojects are in place to support this transition. Nearly half of the entire investment is anticipated to go towards NEOM, a key element of this vision. The non-oil sector continues to grow in importance, and the overall economic outlook is still positive despite possible changes to some projects, such as NEOM.
Rising household consumption and a booming tourism industry are driving up domestic demand, and Saudi Arabia is gradually decreasing its reliance on hydrocarbons.
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