Non-oil economic activity in Saudi Arabia contributed 50 percent to the Kingdom’s gross domestic product in 2023, the highest level ever, the Ministry of Economy and Planning said on Thursday.
The total non-oil economy was worth $453 billion at constant prices, driven by continued growth in investment, consumption and exports.
Launched in 2016, Saudi Arabia’s Vision 2030 initiative envisions non-oil economy’s share of the country’s GDP rising from 18.7% to 50% by 2030. The program also aims to increase non-oil revenues from $43 billion to $264 billion by 2030, and increase the non-oil private sector’s share of GDP from 39% to 65%.
2023 saw significant movement towards achieving these goals as the Ministry of Economy and Planning (MEP) announced on Thursday that non-oil economic activity in Saudi Arabia contributed 50 percent to the Kingdom’s gross domestic product last year, the highest level ever.
Arab News reports, “unprecedented performance in non-governmental investments over the past two years, with a growth rate of 57 percent, bringing their value in 2023 to a historically high level of $255 billion. Arts and entertainment led the growth in non-oil activity, more than doubling in value in 2021-2022. Other activities such as accommodation, food, transport and storage services recorded strong growth rates of 77 percent and 29 percent respectively.”
Asharq Al-Awsat adds, “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%. ”
