Saudi Arabia’s Economy Grows 1.3% in 2024 From Non-Oil Sector

Saudi Arabia’s economy has returned to growth in 2024, with a 1.3% increase in real GDP compared to the previous year. According to preliminary data from the Saudi government, this growth was largely fueled by a strong performance in the non-oil sector.

For the fourth quarter of 2024, Saudi GDP surged by 4.4% compared to the same period in 2023, marking the highest quarterly growth rate in two years. Non-oil activities were a key contributor, rising by 4.6%, indicating a robust shift toward diversification in the kingdom's economy.

While the overall economy saw growth, non-oil sector activities significantly outperformed the total GDP increase, growing by 4.3%. In contrast, oil-related activities contracted by 4.5%, reflecting the impact of ongoing oil production cuts. Meanwhile, government activities grew by 2.6%.

This growth in 2024 follows a contraction of 0.8% in 2023, driven by lower oil prices and production cuts. The shift towards non-oil sectors supports the country’s long-term economic diversification plan, focused on decreasing reliance on oil revenues and boosting industries like technology, tourism, and renewable energy.