RIYADH. Saudi Arabia’s economy grew by 1.3% in 2024, driven by robust expansion in non-oil industries even as oil activities contracted sharply under OPEC+ production cuts, according to official data released the General Authority for Statistics (GASTAT). The results underscore the Kingdom’s accelerating shift toward diversification under its Vision 2030 agenda.
Annual Growth Highlights
- Non-oil activities surged 4.3%, fueled by technology, tourism, and manufacturing.
- Government spending rose 2.6%, reflecting sustained investments in infrastructure and giga-projects like NEOM.
- Oil activities fell 4.5%, attributed to OPEC+ output reductions and global energy market volatility.
Non-oil sectors now contribute nearly 50% of Saudi Arabia’s GDP, up from 35% in 2016, marking a milestone in the Kingdom’s bid to reduce reliance on hydrocarbons.
Fourth Quarter Momentum
The economy ended 2024 on a strong note, with Q4 GDP expanding 4.5% year-on-year, powered by:
- Non-oil growth: +4.7%, signaling private-sector confidence.
- Oil rebound: +3.4%, reflecting temporary production adjustments.
- Government activity: +2.2%, as major projects accelerated.
On a quarterly basis, seasonally adjusted real GDP rose 0.5% in Q4 compared to Q3, indicating steady momentum despite global economic uncertainty.
GASTAT’s National Accounts Indicators for 2024 aligns with Saudi Arabia’s Vision 2030 goals to build a “prosperous, sustainable economy.” Legislative reforms, privatization drives, and a $1 trillion pipeline of giga-projects have bolstered non-oil industries.
Saudi Arabia aims to cement its diversification gains in 2025, with plans to:
- Ramp up investments in AI, renewable energy, and logistics.
- Expand tourism infrastructure to accommodate 150 million annual visitors by 2030.
- Leverage the Tadawul stock exchange, now a top-10 global market, to attract IPOs and foreign capital.
The GDP figures arrive as Riyadh accelerates reforms to position itself as a global business hub. Upcoming projects like the 2034 FIFA World Cup and the Red Sea tourism corridor are expected to further boost non-oil growth.