In 2023, Saudi Arabia’s economy underwent a noteworthy transformation, with the non-oil segment achieving a historic feat by accounting for half of the nation’s real GDP. An analysis by the Ministry of Economy and Planning, based on data from the General Authority for Statistics, revealed that this expansion was fueled by vibrant investment, consumer expenditure, and exports. This leap in non-oil economic activities is a testament to the Kingdom’s dedication to diversify its economy and the effective execution of strategic initiatives under Saudi Vision 2030.
Private investment propels growth
The non-oil economy’s valuation in Saudi Arabia soared to SAR1.7 trillion (approximately $453 billion) at constant prices. The private sector’s investment burgeoned by 57 percent over the past two years, hitting an all-time high of SAR959 billion in 2023, thereby driving the non-oil economy’s robust growth.
Diverse growth
A myriad of sectors have played a role in the remarkable expansion of the non-oil economy. The arts and entertainment sector led with an extraordinary growth of 106 percent between 2021 and 2022, reflecting the Kingdom’s burgeoning cultural landscape. Accommodation and food services followed with a 77 percent rise, whereas the transportation and storage sector expanded by 29 percent.
The dynamism of Saudi Arabia’s non-oil economy in 2023 is evident across numerous sectors. Social services, which encompass healthcare, education, and entertainment, witnessed an increase of 10.8 percent, exemplifying the government’s focus on improving citizens’ and residents’ quality of life. Transportation and communication sectors grew by 7.3 percent, and the realm of trade, restaurants, and hotels saw a 7 percent growth, contributing to the economy’s diversification.
Service exports
Service exports, especially from tourism spending, have seen an astonishing 319 percent growth over the past two years. This spike mirrors Saudi Arabia’s emergence as a premier tourism and entertainment hub, playing a crucial role in the diversification and enhancement of the non-oil economy.
The progress in Saudi Arabia’s non-oil sector is perfectly aligned with Saudi Vision 2030’s objectives, which are focused on cultivating a prosperous economy by diversifying the sources of growth. The success in rolling out key programs and projects as part of the vision reaffirms the Kingdom’s commitment to nurturing new sectors that contribute to elevated growth rates and sustainable economic advance.