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Non-oil Sector Supports Growth of Saudi Economy to USD 162 Billion

Non-oil Sector Supports Growth of Saudi Economy to USD 162 Billion

Tuesday, 14 September, 2021 - 11:00
A view shows buildings and the Kingdom Center Tower in Riyadh, Saudi Arabia. (Reuters)

Official Saudi data revealed that national economic growth exceeded government estimates, as the Saudi gross domestic product rose during the second quarter of 2021 by 1.8 percent to reach 608.8 billion riyals (USD 162.3 billion) compared to 597.8 billion riyals for the same period in 2020.


Rapid estimates of Saudi Arabia’s GDP at constant prices - which is a standard methodology applied in extrapolating government budgets – were set by the General Authority for Statistics last August at a growth rate of 1.5 percent for the second quarter of 2021 compared to the same period last year.


According to the Statistics Authority, the non-oil sector recorded a growth of 8.4 percent to reach 366.5 billion riyals (USD 97.7 billion), while its contribution to the GDP amounted to 60.2 percent, in contrast to a decline in the GDP of the oil sector by 6.9 percent in the second quarter of 2021 compared to the same period in 2020.


According to the authority’s data, the real GDP of the private sector achieved, during the second quarter of 2021, a positive growth of 11.1 percent, while the real GDP of the oil sector, with seasonal adjustments, achieved during the second quarter an increase of 2.4 percent.


Meanwhile, the Local Content and Government Procurement Authority announced on Monday the issuance of the first version of the mandatory list of food and agricultural products, which includes 28 products, primarily meat, poultry, fish, dairy products and their derivatives.


The authority revealed that it worked on developing the mandatory list of food and agricultural products in cooperation with five government agencies, namely the Ministry of Environment, Water and Agriculture, the Ministry of Industry and Mineral Resources, the Food and Drug General Authority, the Government Expenditures and Projects Efficiency Authority, and the Federation of Saudi Chambers.


CEO of the Local Content and Government Procurement Authority, Abdulrahman bin Abdullah Al-Samari said that the issuance of the list comes within the framework of the authority’s efforts to develop local content in all non-oil sectors and to exploit the opportunities available for its growth.


He added that the list would contribute to achieving food security and self-sufficiency in the Kingdom, and support national factories, which would be reflected in creating job opportunities for Saudis and increasing the production capacity.


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