In an important milestone, the Ministry of Economy and Planning said on Thursday that non-oil economic activity will contribute a record-breaking 50% of Saudi Arabia’s GDP in 2023.
The non-oil economy grew strongly, totaling $453 billion at constant prices, thanks to sustained investments, increasing consumption, and expanding exports.
Notably, non-governmental investments increased by an astonishing 57% over the last two years, hitting a record high of $255 billion in 2023. The arts and entertainment sector emerged as a standout, with its worth more than doubling during 2021-2022. Furthermore, the housing, food services, transportation, and storage sectors experienced substantial growth rates of 77% and 29%, respectively.
The rise of non-oil activities in 2023 was distinguished by its diversified contributions and momentum. Social services, comprising health and education, grew by 10.8 percent, followed by transportation and communications (3.7 percent) and trade, restaurants, and hotels (7%).
Furthermore, real service exports, which are mostly driven by tourist spending, have had historic growth rates of 319 percent over the last two years. This rise demonstrates the practical impact of Saudi Arabia’s transition into a global tourism and entertainment destination, which contributes to the country’s economic diversification initiatives.
Increasing the share of non-oil economic activity in total GDP is consistent with the fundamental goal of Saudi Vision 2030. This vision seeks to create a successful economy by diversifying growth engines away from hydrocarbons, hence supporting long-term economic development in the Kingdom.
