Saudi Arabia’s Non-oil Economy Hits Record 50% Share of Real GDP

Saudi Arabia’s non-oil activities hit a historic 50% share of the country’s real GDP in 2023. (SPA)
Saudi Arabia’s non-oil activities hit a historic 50% share of the country’s real GDP in 2023. (SPA)
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Saudi Arabia’s Non-oil Economy Hits Record 50% Share of Real GDP

Saudi Arabia’s non-oil activities hit a historic 50% share of the country’s real GDP in 2023. (SPA)
Saudi Arabia’s non-oil activities hit a historic 50% share of the country’s real GDP in 2023. (SPA)

Saudi Arabia’s non-oil activities hit a historic 50% share of the country’s real GDP in 2023, the highest level on record, according to an analysis of the General Authority for Statistics data by the Ministry of Economy and Planning.
This translates to a non-oil economy valued at SAR1.7 trillion (approximately $453 billion) at constant prices, fueled by consistent growth in investment, consumer spending, and exports, the Saudi Press Agency said.
The significant contribution from non-oil sectors is attributed to a surge in private-sector investment over the past two years, with a remarkable growth rate of 57%. This has pushed private investment to a record high of SAR959 billion riyals ($254 billion ) in 2023.
Arts and entertainment activities led the pack with an exceptional 106% growth between 2021 and 2022. Other sectors like accommodation, food services, transportation, and storage also witnessed robust growth, expanding 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%).
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.
This surge aligns perfectly with the objectives of Saudi Vision 2030, which aims to achieve a thriving economy by diversifying growth drivers. It also underscores the Kingdom's success in implementing key programs and projects outlined in the vision, fostering the development of new sectors that contribute to higher growth rates.



Gulf Markets Decline Amid Escalating Geopolitical Tensions in the Region

Traders monitor screens displaying stock information on the Qatar Stock Exchange in Doha. (Reuters)
Traders monitor screens displaying stock information on the Qatar Stock Exchange in Doha. (Reuters)
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Gulf Markets Decline Amid Escalating Geopolitical Tensions in the Region

Traders monitor screens displaying stock information on the Qatar Stock Exchange in Doha. (Reuters)
Traders monitor screens displaying stock information on the Qatar Stock Exchange in Doha. (Reuters)

Most stock markets in the Gulf region closed lower on Sunday, amid fears that increasing geopolitical tensions could lead to a broader conflict in the region.

Israeli airstrikes shook southern Beirut on Friday night and into the early hours of Sunday, marking the heaviest bombardment of the Lebanese capital since Israel escalated its campaign against Hezbollah last month.

The Saudi index fell by 1.6%, hitting its lowest level since September 11, driven by declines in Al-Tayseer (TALCO) Group shares, which dropped 5.1%, and Al Rajhi Bank, which fell by 4.8%. Meanwhile, Aramco, the heaviest-weighted stock on the index, slipped by 0.18% to reach SAR 27.

The Qatari index also lost 0.5%, as Qatar Fuel Company shares fell by 2.3%. The Kuwaiti stock market index declined by 1%, and Bahrain’s general index fell by 0.13%.

On the other hand, some Arab markets managed to recover from the losses they incurred last week. The Egyptian stock market index rose by 1.24%, while the Casablanca index posted a slight gain of 0.09%, and the Muscat index increased by 0.16%.

Similar events in April led to a wave of selling of stocks and other high-risk assets, but markets rebounded within days as concerns over the escalation of the conflict subsided.