Saudi Arabia’s economic landscape witnessed a significant transformation in 2023, with the non-oil economy reaching a historic milestone, contributing 50 percent to the country’s real GDP. According to an analysis of the General Authority for Statistics data by the Ministry of Economy and Planning, the remarkable growth was supported by robust investment, consumer spending, and exports. This surge in non-oil activities underscores the Kingdom’s commitment to economic diversification and the successful implementation of key initiatives outlined in Saudi Vision 2030.
Private investment propels growth
The value of the non-oil economy in Saudi Arabia reached SAR1.7 trillion (around $453 billion) at constant prices. A standout feature of Saudi Arabia’s non-oil activity in 2023 is the surge in private-sector investment. In the last two years, private-sector investment experienced a remarkable growth rate of 57 percent. This surge has propelled private investment to a record high of SAR959 billion in 2023.
Diverse growth
Various sectors have contributed to the unprecedented growth of Saudi Arabia’s non-oil economy. Arts and entertainment activities led the charge with an exceptional 106 percent growth in 2021 and 2022. This growth showcases the Kingdom’s growing cultural scene. Additionally, sectors such as accommodation and food saw a 77 percent increase. Meanwhile, transportation and storage saw a 29 percent expansion.
The growth in Saudi Arabia’s non-oil economy during 2023 is characterized by its diversity and momentum across multiple sectors. Social services, including healthcare, education and entertainment, saw a substantial increase of 10.8 percent. This underscores the government’s commitment to enhancing the quality of life of citizens and residents. Transportation and communication recorded a growth rate of 7.3 percent. Meanwhile, trade, restaurants and hotels grew by 7 percent, further diversifying the economy.
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Service exports
Service exports, represented by tourist spending, have experienced an unprecedented growth rate of 319 percent over the past two years. This surge reflects Saudi Arabia’s successful transformation into a global tourism and entertainment destination, contributing significantly to economic diversification and growth of the non-oil economy.
The surge in Saudi Arabia’s non-oil economy aligns perfectly with the objectives of Saudi Vision 2030, which aims to achieve a thriving economy by diversifying growth drivers. The success in implementing key programs and projects outlined in the vision underscores the Kingdom’s commitment to fostering new sectors that contribute to higher growth rates and sustainable economic development.
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