Saudi Arabia’s non-oil sector accounted for 50 percent of the country’s real GDP in 2023, the highest historical level it has ever reached, a government analysis showed.
In real terms, the contribution of the non-oil sector amounted to SAR1.7 trillion, the analysis by the Saudi Ministry of Economy and Planning revealed.
The analysis is based on the data issued by the country’s General Authority for Statistics.
Unprecedented performance in non-governmental investment during the last two years is cited as the major reason for the historically high contribution rate of the non-oil sector.
Private investment in the non-oil sector in Saudi Arabia notched up a growth of 57 percent in the last two years, bringing the value of non-governmental investments to its highest historical level at SAR959 billion in 2023.
Arts and entertainment activities came at the forefront of activities that achieved exceptional growth amounting to 106 percent during 2021-22, while other activities such as accommodation, food, transportation, and storage services recorded strong growth rates of 77 percent and 29 percent respectively.
The growth in non-oil activities during the year 2023 was exceptional in terms of the diversity of contribution and growth momentum, as social services, such as health, education, and entertainment, recorded a growth of 10.8 percent, followed by transportation and communications, 3.7 percent, and trade, restaurants, and hotels at 7 percent.
Real service exports, represented by the spending of incoming tourists, recorded historic growth rates during the last two years, with a whopping growth rate of 319 percent, reflecting the country’s transformation into a global destination for tourism and entertainment, the analysis said.
The surge in the non-oil sector growth rates comes amidst Saudi Arabia’s big push to diversify its economy by pumping in billions of dollars of investments in various initiatives and projects in these sectors.
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