Saudi Arabia’s non-oil sector made up half of the nation’s real GDP in 2023, marking its highest ever level, as per a government analysis.
In actual figures, the non-oil sector contributed SAR 1.7T, according to the Saudi Ministry of Economy and Planning.
The analysis relies on data from the General Authority for Statistics of the country.
The unprecedented rise in private investment over the past two years is cited as the primary driver behind the historic surge in the non-oil sector’s contribution.
Private investments in Saudi Arabia’s non-oil sector soared by 57% over the last two years, reaching SAR 959B in 2023, its highest level to date.
Activities in arts and entertainment saw remarkable growth of 106% during 2021-22, while accommodation, food, transportation, and storage services also recorded robust growth rates of 77% and 29%, respectively.
The diversity and momentum of growth in non-oil activities in 2023 were exceptional, with social services such as health, education, and entertainment growing by 10.8%, followed by transportation and communications at 3.7%, and trade, restaurants, and hotels at 7%.
Real service exports, including spending by incoming tourists, experienced historic growth rates over the past two years, with a staggering 319% increase, reflecting Saudi Arabia’s evolution into a global tourism and entertainment destination, according to Arabian Business.
The surge in non-oil sector growth rates coincides with Saudi Arabia’s significant efforts to diversify its economy by investing billions of dollars in various initiatives and projects within these sectors.
