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Saudi Non-Oil Activities Sustain 11 Consecutive Quarters of Growth

The Saudi government continues to support non-oil activities to achieve economic growth (Asharq Al-Awsat)
The Saudi government continues to support non-oil activities to achieve economic growth (Asharq Al-Awsat)
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Saudi Non-Oil Activities Sustain 11 Consecutive Quarters of Growth

The Saudi government continues to support non-oil activities to achieve economic growth (Asharq Al-Awsat)
The Saudi government continues to support non-oil activities to achieve economic growth (Asharq Al-Awsat)

Non-oil activities in Saudi Arabia have maintained their growth momentum in Q3 of 2023, registering a 3.6% increase despite a decline from Q2.

This reflects the success of the Kingdom’s diversification of income sources, moving away from oil, which is a key objective of Saudi Arabia’s national transformation plan, Vision 2030.

Meanwhile, the local GDP contracted by 4.5% in Q3, largely attributed to a 17.3% decrease in oil activities.

Experts have confirmed to Asharq Al-Awsat that the continued growth of non-oil activities affirms the success of the Saudi government’s policy to diversify income sources and not rely on oil.

This is achieved by supporting the local private sector, stimulating the export of national products and services to international markets, and continuing to implement large-scale development projects.

Rapid estimates from the General Authority for Statistics (GASTAT) revealed that the local GDP decreased by 4.5% in Q3 compared to the same period in 2022, primarily due to the contraction of oil activities by 17.3% (the second consecutive quarterly contraction), despite the rise in non-oil activities, as well as a 1.9% growth in government activities.

The seasonally adjusted annualized GDP declined by 3.9% in Q3 of 2023 compared to Q2, influenced by an 8.4% decrease in oil activities and a 5.3% decline in government activities, while non-oil activities achieved a marginal 0.1% increase on a quarterly basis.

The non-oil economy in Saudi Arabia experienced a growth rate of 6.1% during the second quarter of 2023, leading the Kingdom to revise its estimates for the overall GDP growth to 1.2% in the second quarter, up from the previous preliminary estimate of 1.1%.

Last week, Saudi Finance Minister Mohammed Al-Jadaan said the Kingdom is no longer focusing on GDP numbers but instead on the development of the non-oil sector.

He anticipated that the non-oil GDP for 2023 will conclude with a growth rate of around 6%.

Economic expert Ihsan Bouhliqa told Asharq Al-Awsat that the decline in the GDP growth rate in Q3 of 2023, compared to the same period in 2022, and the 3.17% slowdown in the oil sector’s growth, are the result of voluntary reductions in Saudi oil production.

Bouhliqa explained that non-oil activities have been consistently growing without interruption for the eleventh consecutive quarter since the beginning of 2021, with a quarterly growth rate ranging from 10% in Q2 of 2021 to 3.6% in Q3 of 2023.

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IMF Says it's Updating Assessment of US Economy to Reflect Impact of Iran War

An American Flag on the US Capitol Building is seen in Washington, US, August 31, 2023. REUTERS/Kevin Wurm/File Photo
An American Flag on the US Capitol Building is seen in Washington, US, August 31, 2023. REUTERS/Kevin Wurm/File Photo
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IMF Says it's Updating Assessment of US Economy to Reflect Impact of Iran War

An American Flag on the US Capitol Building is seen in Washington, US, August 31, 2023. REUTERS/Kevin Wurm/File Photo
An American Flag on the US Capitol Building is seen in Washington, US, August 31, 2023. REUTERS/Kevin Wurm/File Photo

The International Monetary Fund on Thursday said it is updating a recently completed review of the US economy to reflect the impact of the Iran war, Reuters reported.

IMF spokeswoman Julie Kozack said the updated assessment would be considered by the IMF's board in coming weeks and then published.

Business

Czech Central Bank Keeping Options open as Iran War Clouds Rate Prospects

People leave the Czech National Bank building in central Prague December 9, 2011. REUTERS/Petr Josek/File Photo
People leave the Czech National Bank building in central Prague December 9, 2011. REUTERS/Petr Josek/File Photo
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Czech Central Bank Keeping Options open as Iran War Clouds Rate Prospects

People leave the Czech National Bank building in central Prague December 9, 2011. REUTERS/Petr Josek/File Photo
People leave the Czech National Bank building in central Prague December 9, 2011. REUTERS/Petr Josek/File Photo

The Czech National Bank (CNB) held interest rates steady as expected on Thursday and said it was keeping options open as it monitors the economic fallout from the conflict in the Middle East.

Since the United States and Israel launched strikes on Iran on February 28, oil prices have jumped above $100 a barrel, raising global risks of higher inflation and an economic hit.

Czech central bank policymakers voted unanimously to keep the main rate steady at 3.50% on Thursday, in line with forecasts from all 17 analysts in a Reuters poll last week.

The poll's median forecast saw interest rates remaining on hold for the rest of the year, although money markets have priced in chances of a hike. Governor Ales Michl said after the decision that the conditions for fighting inflation are now better than during the previous energy and inflation shock following Russia's invasion of Ukraine in 2022, as policy is now tighter and rates are higher than inflation.

He added that inflation expectations remain anchored, and it was important to keep them low.

"We are acting restrictively in the economy," he said. "On the other hand, we are monitoring the situation, we are keeping all options open."

The Czech crown was a touch weaker after the bank's decision but largely steady on the day, at 24.49 to the euro, and around its lowest levels since September after this month's declines.

INFLATION STILL SEEN STAYING LOW

The central bank had discussed a possible rate cut at its last meeting in February, before the Iran war. It last cut rates in May 2025 as part of a 350-basis-point easing cycle.

Inflation in the Czech Republic has fallen below the bank's 2% target, hitting a headline rate of 1.4% year-on-year in February with help from a government measure to ease energy bills. That provides a cushion to potential shock from higher oil prices, and Michl said inflation should stay below 2% this year, according to updated forecasts partly incorporating higher oil prices, even though core inflation should remain elevated in the quarters ahead.

The central bank will be looking at the secondary impacts of a higher oil price to see if it soaks through to other segments.

Business

King Khalid International Airport Wins World’s Most Improved Airport at Skytrax Awards 2026

The recognition was announced during the Skytrax World Airport Awards ceremony, London - SPA
The recognition was announced during the Skytrax World Airport Awards ceremony, London - SPA
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King Khalid International Airport Wins World’s Most Improved Airport at Skytrax Awards 2026

The recognition was announced during the Skytrax World Airport Awards ceremony, London - SPA
The recognition was announced during the Skytrax World Airport Awards ceremony, London - SPA

King Khalid International Airport, managed and operated by Riyadh Airports Company, has achieved global recognition after being named “World’s Most Improved Airport” among more than 560 airports worldwide in 2026. It also received the award for Best Airport in the 30–40 million passengers category, ranked 14th on the list of the world’s best airports, and placed second for Best Airport Staff in the Middle East.

The recognition was announced during the Skytrax World Airport Awards ceremony, held in London on March 18, as part of the Passenger Terminal Expo “PTE World 2026,” with the participation of leading aviation industry figures and experts from around the world, SPA reported.

The achievement reflects the significant progress the airport has made across various areas, driven by a series of development initiatives that have enhanced the passenger experience and elevated service quality in line with the highest international standards, resulting in a qualitative leap in operational efficiency and performance.

This milestone underscores the Kingdom’s accelerating transformation across multiple sectors, including aviation, which continues to grow in line with the objectives of Saudi Vision 2030, aimed at positioning the Kingdom as a global logistics hub and a key center for domestic and international travel.

CEO of Riyadh Airports Company Ayman AboAbah said the achievements reflect the company’s firm commitment to advancing operational services and airport infrastructure.

Meanwhile, Skytrax CEO Edward Plaisted said the recognition reflects the scale of development achieved at King Khalid International Airport, noting that travelers are experiencing clear improvements across all stages of their journey.

He added that the airport’s rise to 14th place in the list of the world’s top 100 airports underscores the strength and impact of these developments, the efficiency of the upgrade plans, and their success in enhancing passenger experience, reinforcing its position as a key regional travel hub, and embodying the scale of its exceptional transformation.