Arab News, Sat, Mar 16, 2024 | Ramadan 6, 1445
Non-oil activity in Saudi Arabia now 50% of GDP
Saudi Arabia:
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.
There was an 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.
The growth in non-oil activities during 2023 was
exceptional in terms of the diversity of contribution and growth momentum.
Social services such as health and education recorded growth of 10.8 percent,
followed by transport and communications at 3.7 percent, and trade, restaurants
and hotels at 7 percent.
Real service exports represented by tourist
spending recorded historic growth rates of 319 percent over the past two years,
reflecting the clear impact of the Kingdom’s transformation into a global
destination for tourism and entertainment and advancing the process of economic
diversification.
An increase in non-oil economic activity as a
proportion of total GDP is a key goal of Saudi Vision 2030, which aims to
achieve a prosperous economy by diversifying the engines of growth away from
hydrocarbons.