Saudi Arabia’s Non-Oil Economy Surges to Record Levels in 2023
In a groundbreaking development, non-oil economic activity in Saudi Arabia made up 50 percent of the Kingdom’s GDP in 2023, marking the highest level ever achieved. This announcement was made by the Ministry of Economy and Planning on Thursday.
Unprecedented Growth Driven by Investment, Consumption, and Exports
The total value of the non-oil economy reached $453 billion at constant prices, propelled by sustained growth in investment, consumption, and exports. Non-governmental investments saw a remarkable growth rate of 57 percent over the past two years, reaching a historic high of $255 billion in 2023.
Arts and Entertainment Lead the Charge
The arts and entertainment sector emerged as a frontrunner in driving the growth of non-oil activity, more than doubling in value during 2021-2022. Additionally, industries such as accommodation, food, transport, and storage services witnessed strong growth rates of 77 percent and 29 percent, respectively.
Diversification and Momentum in Non-Oil Activities
The growth in non-oil activities in 2023 showcased exceptional diversity and momentum. Social services like health and education recorded a growth of 10.8 percent, followed by transport and communications at 3.7 percent, and trade, restaurants, and hotels at 7 percent.
Boost in Real Service Exports
Real service exports, particularly tourist spending, experienced historic growth rates of 319 percent over the past two years. This reflects the significant impact of Saudi Arabia’s transformation into a global tourism and entertainment hub, furthering the process of economic diversification.
Alignment with Saudi Vision 2030
The increase in non-oil economic activity aligns with the goals of Saudi Vision 2030, which aims to foster a prosperous economy by diversifying growth engines away from hydrocarbons. This shift signifies a monumental step towards achieving economic sustainability and resilience in the Kingdom.