Saudi Arabia’s Non-Oil Sector Set to Soar in 2024 and 2025
In a groundbreaking analysis, Riyad Capital predicts that Saudi Arabia’s non-oil sector will experience a remarkable growth rate of 4.8 percent in 2024, thanks to the Kingdom’s forward-thinking fiscal policies.
A Bright Future Ahead
According to the report, the non-oil sector is expected to continue its upward trajectory in 2025, with a projected expansion rate of 5.2 percent. Riyad Capital believes that this growth will be fueled by increased investment spending and a focus on fostering economic development.
Breaking the Dependency on Oil
As Saudi Arabia works towards achieving its Vision 2030 goals of reducing reliance on oil revenue, the development of the non-oil sector becomes increasingly crucial. The report highlights the importance of diversifying the economy and creating sustainable growth opportunities.
Promising Economic Outlook
The analysis also forecasts a positive outlook for Saudi Arabia’s overall economic growth, with the gross domestic product expected to expand by 2.3 percent in 2024 and a significant jump to 5.8 percent in 2025. This growth is expected to be supported by a shrinking fiscal deficit and an increase in oil export revenues.
Oil Production on the Rise
Riyad Capital anticipates that Saudi Arabia’s oil production will exceed 10 million barrels per day within the next 18 months. The report projects a substantial increase in oil sector GDP contribution, with a predicted growth rate of 8.7 percent in 2025.
Global Oil Market Dynamics
Despite expected volatility, global oil prices are forecasted to remain elevated, with Brent crude trading between $80 and $90 in 2024 and 2025. This trend is expected to have a significant impact on Saudi Arabia’s economic landscape.