Saudi Arabia’s non-oil sector grew by 4.9% year-on-year in Q2 2024, driven by significant gains in the financial and insurance sectors, as reported by the General Authority for Statistics (GASTAT).
The financial, insurance, and business services sectors saw a notable increase of 7.1% compared to the same period last year. This growth is part of the Kingdom’s broader efforts to diversify its economy under Vision 2030, which aims to reduce reliance on oil revenue.
Non-oil activities also rose by 2.1% from the previous quarter. GASTAT data revealed that Saudi Arabia’s seasonally adjusted GDP grew by 1.4% from Q1 to Q2 2024, although there was a minor year-on-year decline of 0.3%, primarily due to an 8.9% drop in oil activities following reduced crude output as per OPEC+ agreements.
Saudi Arabia cut oil production by 500,000 barrels per day in April 2023, extending this reduction until December 2024 to stabilize the market. GASTAT noted that the Kingdom’s GDP at current prices reached SR1.02 trillion ($270 billion) in Q2 2024.
“Crude oil and natural gas activities achieved the highest contribution to the GDP at 23.2%, followed by government activities at 16%, and wholesale and retail trade, restaurants, and hotels at 10.1%,” stated GASTAT.
Government activities increased by 3.6% year-on-year and 2.3% quarter-on-quarter. Electricity, gas, and water activities grew by 8.9% year-on-year, while wholesale and retail trade, restaurants, and hotels saw a 6.8% rise.
Government final consumption expenditure rose by 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.
Saudi Arabia continues to focus on investing in key sectors such as financial services, infrastructure, and energy to meet the objectives outlined in Vision 2030.