Saudi Arabia was well-known as the largest oil producer in the world and dominated the larger share of the market. The Kingdom remained the de facto country for oil and was the biggest supplier to Europe, Asia, Africa, and the US. However, the State-run refinery Saudi Aramco announced that it is halting extending oil outputs early this year. The Middle Eastern country was looking at other revenues to boost its GDP and not solely rely on oil production.
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It has now succeeded in its mission as non-oil revenue hit 50% of Saudi Arabia’s GDP for the first time. The Ministry of Economy and Planning revealed that other sectors generated half of the nation’s GDP in 2023. The diversification of its economy is an important step as the usage of oil is experiencing a slight decrease globally. The introduction of electric vehicles (EVs) was the first blow to the global oil production and supply units.
Non-oil Revenue Reaches 50% of Saudi Arabia’s GDP
Saudi Arabia’s non-oil economy is currently valued at 1.7 trillion Saudi Riyals, which is approximately $453 billion. The rise in non-oil revenues comes from a steady increase in exports, investments, and consumer spending. In addition, the Kingdom’s private-sector investments grew by 57% touching a record high of 959 billion Saudi Riyals, which is $254 billion.
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Additionally, arts & entertainment and real service exports spiked triple-digits touching 106% and 319% growth, respectively. The overall food sector grew by 77% while transport and storage services recorded a growth of 29%.
Also, the health and education sector grew by 10.8% and restaurants and hotels saw a growth of 7%. The transport and communications increased in Saudi Arabia by 3.7%.
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All these sectors added to the 50% revenue increase to Saudi Arabia’s economy and GDP in 2023. In addition, Saudi Arabia is also opening up to tourism and is aiming to liberalize the country to attract tourists. The tourism sector could also boost its economy and the GDP in the coming next years.