In a landmark achievement for Saudi Arabia, the nation’s non-oil activities have reached an unprecedented milestone, constituting 50% of the overall real GDP in 2023, the highest proportion ever recorded. This data, drawn from the General Authority for Statistics and analyzed by the Ministry of Economy and Planning, underscores a vital shift in the country’s economic profile.
The value of the non-oil economy has soared to SAR1.7 trillion, equivalent to about $453 billion, at constant prices. This impressive figure is the result of sustained increases in investment, consumer spending, and exports.
A notable driver of this growth has been the private sector, where investment has seen a meteoric 57% increase over the past two years, resulting in an all-time high investment figure of SAR959 billion, or $254 billion, in 2023. The arts and entertainment sector has been at the forefront of this expansion, with an astounding 106% growth between 2021 and 2022.
Other industries, such as accommodation and food services, along with transportation and storage, have also demonstrated vigorous expansion, growing by 77% and 29% respectively.
The growth in non-oil activities during 2023 is noteworthy for its diversity and momentum across various sectors. Social services, including healthcare, education, and entertainment, saw a 10.8% increase, followed by transportation and communication (3.7%) and trade, restaurants, and hotels (7%),
noted the ministry in its report.
The realm of real service exports, particularly those spurred by tourism expenditures, has also seen a significant uptick. Over the past two years, this sector has ballooned by an astonishing 319%.
These figures reflect Saudi Arabia’s successful transformation into a major hub for global tourism and entertainment, a change that is pivotal to the nation’s economic diversification and the activation of new engines for growth.