Non-oil economy in Saudi Arabia hits record high at $453 billion
- Non-oil economy worth SAR1.7 trillion (approximately $453 billion) at constant prices.
- The contribution from non-oil sectors is attributed to a surge in private-sector investment over the past two years, with a growth rate of 57%.
- private investment to a record high of SAR959 billion ($254 billion) in 2023, with arts and entertainment activities leading the pack with an exceptional 106% growth between 2021 and 2022.
According to an analysis of General Authority for Statistics data by the Ministry of Economy and Planning, non-oil activities in Saudi Arabia reached a milestone, achieving a 50% share of the country’s real GDP in 2023, the highest level ever recorded.
This translates to a non-oil economy worth SAR1.7 trillion (approximately $453 billion) at constant prices, powered by consistent growth in investment, consumer spending, and exports.
The significant contribution from non-oil sectors is attributed to a surge in private-sector investment over the past two years, with a growth rate of 57%.
The report states that this growth pushed private investment to a record high of SAR959 billion ($254 billion) in 2023, with arts and entertainment activities leading the pack with an exceptional 106% growth between 2021 and 2022.
Other sectors such as accommodation, food services, transportation, and storage also witnessed robust growth, expanding by 77% and 29%, respectively.
The ministry stated in its report that “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%).”
Real service exports, primarily driven by tourist spending, have skyrocketed over the past two years, experiencing a growth rate of 319%.
This reflects the significant impact of Saudi Arabia’s transformation into a global tourism and entertainment destination, further propelling economic diversification and growth engines.
