Saudi Arabia’s real gross domestic product (GDP) experienced an annual increase of 4.4 percent in the fourth quarter of 2024, representing its highest growth in two years, according to official data from GASTAT.
Saudi Arabia’s economy made a comeback in 2024, with real gross domestic product rising by 1.3 percent compared to the previous year. Preliminary government data released on Thursday indicated that non-oil sector activities significantly contributed to the overall GDP increase.
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Non-oil activities boost Saudi Arabia’s GDP
As per flash estimates from the General Authority for Statistics, the Kingdom’s non-oil activities expanded by 4.6 percent year on year in the three months leading up to December, showcasing ongoing efforts to diversify the economy. The report also highlighted that oil activities grew by 3.4 percent in the fourth quarter compared to the same period in 2023, while government activities saw an increase of 2.2 percent.
Impact of oil production cuts on the economy
The Saudi economy faced a contraction of 0.8 percent in 2023, primarily due to oil production cuts and declining oil prices, which impacted growth in the world’s largest crude exporter.
Read more | FII8: Non-oil GDP now represents 52 percent of Saudi economy, Aljadaan says
Strong performance of key economic indicators
In November 2024, Saudi Arabia’s Finance Minister, Mohammed Al-Jadaan, emphasized the robust performance of key economic indicators within the Kingdom. He stated that nominal GDP surged by 64 percent from 2016 to the end of 2023, reaching approximately SAR4.1 trillion ($1.09 trillion). Despite significant declines in oil GDP affecting real GDP, the growth of the non-oil GDP has been a crucial driver of sustained economic expansion, with forecasts suggesting a growth rate of 4.6 percent in 2025 and similar averages extending through 2027 and beyond.
