09 Dec 2024
RIYADH: Saudi Arabia’s non-oil activities expanded by 4.8 percent year on year in the third quarter of 2024, fueled by growth in the wholesale and retail trade, and restaurant and hotel sectors, official data showed.
According to the General Authority for Statistics, wholesale and retail trade, along with restaurant and hotel activities, grew by 5.8 percent in the third quarter compared to the same period in 2023.
Additionally, activities in the financial, insurance, and business services sectors recorded a 5.7 percent increase year on year during the same period.
Bolstering the non-oil sector is essential for Saudi Arabia as it pursues economic diversification in line with the objectives of Vision 2030.
Last month, speaking at the World Investment Conference, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim noted that non-oil activities now contribute 52 percent to the Kingdom’s gross domestic product.
The latest GASTAT report also highlighted that construction activities rose by 4.6 percent in the third quarter, while the transport, storage, and communication sector expanded by 4.5 percent during the same period.
In quarter-on-quarter terms, non-oil activities grew by 0.7 percent in the third quarter.
The report added that Saudi Arabia’s real gross domestic product grew by 2.8 percent year on year in the third quarter. Quarter-on-quarter, the GDP rose by 0.7 percent.
At current prices, the Kingdom’s GDP reached SR1.00 trillion ($270 billion) during the period, according to GASTAT.
“Crude oil and natural gas activities achieved the highest contribution to the GDP at 22.8 percent, followed by government activities at 16.1 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” said GASTAT.
Government activities saw a 3.1 percent year-on-year growth in the third quarter, though they contracted by 0.3 percent compared to the previous quarter.
Saudi Arabia’s oil activities grew modestly, rising 0.5 percent year-on-year in the third quarter and 1.2 percent compared to the previous quarter.
Meanwhile, government final consumption expenditure increased by 6.2 percent year on year but declined by 1.8 percent quarter-on-quarter.
Gross fixed capital formation — a measure of investment in the economy — rose by 4.5 percent year on year in the third quarter and 0.9 percent compared to the previous quarter.
Saudi Arabia’s economic diversification initiatives under Vision 2030 are increasingly reflected in the robust performance of non-oil sectors, positioning the Kingdom for sustainable long-term growth.
Imports rose by 7.3 percent year-on-year in the third quarter and by 3.8 percent quarter on quarter. Exports increased by 3 percent compared to the same period in 2023 but fell by 5.7 percent from the second quarter.