Saudi Arabia’s non-oil sector expanded by 4.9% in the second quarter of 2024, spurred by growth in financial and insurance sectors, according to the General Authority for Statistics.
Financial, insurance, and business services saw a 7.1% increase compared to the previous year. The non-oil sector also grew by 2.1% from the previous quarter, showcasing the Kingdom’s push to diversify its economy.
This growth aligns with Vision 2030, Saudi Arabia’s strategy to reduce dependency on oil revenue.
Seasonally adjusted GDP rose by 1.4% in the second quarter compared to the first. However, there was a 0.3% year-on-year GDP decline, attributed to an 8.9% reduction in oil activities following the Kingdom’s crude output cuts in line with OPEC+ agreements.
In April 2023, Saudi Arabia cut oil production by 500,000 barrels per day, a reduction extended until December 2024. The GDP at current prices reached SR1.02 trillion ($270 billion) in the second quarter.
Crude oil and natural gas activities contributed 23.2% to the GDP, followed by government activities at 16%, and wholesale and retail trade, restaurants, and hotels at 10.1%,
stated GASTAT.
Government activities increased 3.6% year-on-year and 2.3% quarter-on-quarter. Electricity, gas, and water activities rose by 8.9% year-on-year, while wholesale and retail trade, restaurants, and hotels grew by 6.8%.
Government final consumption expenditure jumped 10.9% year-on-year and 4.3% quarter-on-quarter. Gross fixed capital formation increased by 3.2% compared to the same period last year.
With ongoing investments in financial services, infrastructure, and energy, Saudi Arabia continues to focus on its Vision 2030 goals.