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Saudi Arabia’s economy grows 2.8% driven by non-oil sector expansion
Saudi Arabia's commitment to economic diversification and sustainable development positions it as a key player in the global economy.
Saudi Arabia’s economy grew in the third quarter of 2024, with real GDP expanding by 2.8% year-on-year. This positive trajectory is primarily driven by the non-oil sector, which witnessed a 4.2% year-on-year expansion. This aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and reduce reliance on oil revenues.
Government activities also contributed to overall growth, rising by 3.1% year-on-year. While the oil-related sector saw modest growth of 0.3%, the strong performance of the non-oil sector has been a critical factor in driving overall economic expansion.
In the third quarter, Saudi Arabia’s seasonally adjusted real GDP increased by 0.8% compared to the second quarter, indicating steady and sustainable growth momentum.
Meanwhile, the International Monetary Fund (IMF) and the World Bank have expressed optimism about Saudi Arabia’s economic outlook. The IMF projects a growth rate of 1.5% for 2024 and 4.6% for 2025, while the World Bank forecasts a growth rate of 1.6% in 2024 and 4.9% in 2025. These projections exceed the government’s pre-budget estimate of 0.8% for 2024, driven by a projected 3.7% increase in non-oil activities.
The non-oil sector has emerged as a key driver of economic growth, highlighting the success of Saudi Arabia’s diversification efforts. Government initiatives and policies have been instrumental in stimulating economic activity and attracting foreign investment.
International institutions are optimistic about Saudi Arabia’s economic prospects, acknowledging its resilience and growth potential.
As Saudi Arabia continues to implement its Vision 2030 reforms and diversify its economy, the outlook for future growth remains promising. The Kingdom’s commitment to economic diversification and sustainable development positions it as a significant player in the global economy.
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