Non-oil Sector Leads Saudi Arabia’s GDP Growth in Second Quarter

Non-oil activities achieved a positive growth of 6.1% during the second quarter of 2023. (SPA)
Non-oil activities achieved a positive growth of 6.1% during the second quarter of 2023. (SPA)
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Non-oil Sector Leads Saudi Arabia’s GDP Growth in Second Quarter

Non-oil activities achieved a positive growth of 6.1% during the second quarter of 2023. (SPA)
Non-oil activities achieved a positive growth of 6.1% during the second quarter of 2023. (SPA)

The surge of the non-oil economy in Saudi Arabia at a rate of 6.1 percent, during the second quarter of 2023, led the Kingdom to raise its estimates of GDP growth from 1.1 percent to 1.2 percent.

On July 31, the General Authority for Statistics (GASTAT) issued preliminary estimates, which pointed that the GDP growth reached 1.1 percent in the second quarter of the year.

The GASTAT recent report noted that most economic activities recorded positive growth rates on an annual basis in the second quarter of 2023, with transport, storage and communication activities registering the highest rates of 12.9 percent.

This was supported by the launch of a number of developments and projects, including the official inauguration of Riyadh Air, which will start operating by 2025, according Jadwa Investment.

Wholesale and retail trade, restaurants and hotel activities also grew by 9.8 percent in the second quarter compared to the same period of 2022.

The construction sector also rebounded strongly, growing by 4 percent during the second quarter on an annual basis, in an upward trend, after nearly two years of stagnation that was mainly due to the outbreak of the Covid-19.

On Wednesday, the International Monetary Fund (IMF), in a statement issued by its Executive Board at the conclusion of the 2023 Article IV consultation with Saudi Arabia, expected that the real non-oil GDP in the Kingdom would grow by 4.9 percent during 2023, and 4.4 percent during 2024.

The statement added that the IMF Board “welcomed Saudi Arabia’s ongoing economic transformation, supported by commendable reforms under the Vision 2030 agenda and higher oil prices, which has helped create high growth, record low unemployment, contained inflation, and strong external and fiscal buffers, while reducing reliance on oil.”

The GASTAT report showed that the GDP increased by 1.2 percent in the second quarter on an annual basis, while it decreased by 0.2 percent on a quarterly basis compared to the first quarter of the year.

GASTAT further noted that the Kingdom’s oil activities decreased by 4.3 percent in the three months to the end of June, compared to the same period of the previous year, while it dropped by 1.5 percent from the first quarter of 2023.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.