Saudi Arabia’s non-oil activities accounted for 50% of the country’s gross domestic product (GDP) in 2023 for the first time in the Kingdom’s history, according to data issued by the Ministry of Economy and Planning’s General Authority for Statistics (GASTAT).
As a result, the country’s total non-oil economy was valued at SAR 1.7 trillion($453 billion) at constant prices, driven by continued growth in investment, consumption, and exports.
The achievement underscores the success of the country’s diversification efforts, which led to a surge of private investments in the Kingdom. Over the past two years, non-governmental investments in Saudi Arabia increased by 57%, reaching their highest-ever level at SAR 959 billion in 2023.
Arts and entertainment activities saw the highest growth, achieving exceptional rates of 106% in 2021/2022. Other activities such as accommodation, food, transportation, and storage services recorded strong growth rates of 77% and 29%.
Service-based revenues- the spending done by tourists- also recorded a historic growth of 319% since 2022. This reflects a “clear impact of the Kingdom’s transformation into a global destination for tourism, and entertainment, and advances in economic diversification as growth engines,” officials said in a statement.
Meanwhile, social services, such as health, education, and entertainment, recorded a growth rate of 10.8%, followed by transportation and communications (3.7%), followed by trade, restaurants, and hotels (7%).
In 2023, Saudi Arabia’s real GDP decreased by 0.8% in 2023. Official data showed that oil activities decreased by 9.0%, while non-oil activities achieved a growth of 4.4%, and government activities achieved an increase of 2.1%.
The Kingdom’s GDP contracted by 4.3% in the fourth quarter of the year.
