Saudi Arabia has revised its first-quarter economic growth figures upward, with a notable boost from non-oil sectors. The latest data shows real GDP expanded by 3.4% year-on-year, surpassing earlier projections. Non-oil activities led the way, growing nearly 5%, while government services also posted gains despite a slight drop in oil-related output.
Key industries such as retail, hospitality, and finance experienced robust growth, with wholesale and retail trade, along with restaurants and hotels, seeing the highest increase at 8.4%. Transport and financial services also performed strongly. This diversification comes as oil prices have fallen, impacting government revenues and prompting a greater focus on non-oil investments and infrastructure projects.
Experts note that Saudi Arabia’s investment drive continues to support non-oil sector momentum, but warn that weaker oil earnings may require tighter fiscal policies and could slow growth in coming quarters. Nonetheless, business sentiment remains optimistic, with new orders and hiring activity picking up in the non-oil sectors as companies prepare for further expansion.