Saudi Arabia’s non-oil economy grows by 5 per cent
This growth reflects the country’s ongoing efforts to diversify its economy away from oil
Dubai: Saudi Arabia's non-oil economy demonstrated growth in the second quarter of 2024, with a year-on-year expansion of 4.9 per cent, driven primarily by the financial and insurance sectors.
The financial, insurance, and business services sectors saw a 7.1 per cent increase compared to the same quarter last year.
This growth reflects the country’s ongoing efforts to diversify its economy away from oil dependence, in line with its Vision 2030 goals.
Vision 2030 is a government programme launched in 2016 with a target of diversifying the economy away from oil.
The non-oil sector also experienced a 2.1 per cent increase from the previous quarter, highlighting a positive trend in economic diversification. Seasonally adjusted gross domestic product (GDP) grew by 1.4 per cent quarter-on-quarter, although there was a slight year-on-year decline of 0.3 per cent due to an 8.9 per cent drop in oil-related activities.
This decline is attributed to Saudi Arabia's strategic decision to cut crude oil output by 500,000 barrels per day, a measure taken in accordance with OPEC+ agreements and extended through December 2024.
OPEC+ is the organisation of the petroleum exporting countries is an organisation enabling the co-operation of leading oil-producing and oil-dependent countries in order to collectively influence the global oil market and maximise profit.
Saudi Arabia’s GDP reached $270 billion (Dh991 billion) in the second quarter. The government sector saw a 3.6 per cent increase year-on-year and a 2.3 per cent increase quarter-on-quarter.
Overall, Saudi Arabia’s economic performance reflects a balanced approach to managing oil dependency while investing in key sectors to support its Vision 2030 objectives.