Saudi Arabia’s GDP expanded 2.8% in Q3 due to robust non-oil growth: GASTAT

According to government figures, a growth in non-oil activity drove a 2.8 percent increase in Saudi Arabia’s real gross domestic product in the third quarter of this year compared to the same time in 2023.

In line with Vision 2030’s objectives to diversify the economy beyond oil earnings, the Kingdom’s non-oil sector grew by 4.2 percent year over year in the third quarter, according to the General Authority for Statistics.

Government operations increased by 3.1 percent year over year, according to GASTAT data, while oil activity increased by a moderate 0.3 percent. In comparison to the second quarter, Saudi Arabia’s seasonally adjusted real gross domestic product increased by 0.8 percent in the third quarter.

When breaking down quarterly numbers, oil activities experienced a 1.5 percent growth, while non-oil activity climbed by 0.5 percent. But from quarter to quarter, government activity fell by 0.3 percent.

The International Monetary Fund confirmed the Kingdom’s economic resilience earlier this month, predicting an expansion of 1.5% in 2024 and 4.6% in 2025. The World Bank expressed similar confidence, forecasting growth of 1.6% this year and 4.9 percent in 2025.

Saudi Arabia’s own pre-budget projection, which predicted GDP growth of 0.8 percent in 2024, supported by a 3.7 percent increase in non-oil activity, is surpassed by these IMF and World Bank projections.

In its September assessment, credit rating agency S&P Global also emphasized Saudi Arabia’s economic resiliency, predicting GDP growth of 1.4 percent in 2024 and 5.3 percent in 2025 due to the Kingdom’s efforts to diversify its economy and lessen its dependency on oil earnings.

GASTAT announced earlier this month that the Kingdom’s non-oil exports, including reexports, climbed by 7.5 percent in August to SR27.52 billion, up from the same month the previous year, confirming the Kingdom’s economic diversification efforts.
Saudi Arabia’s non-oil exports increased by 8.13 percent in August compared to July on a monthly basis.

Mohammed Al-Jadaan, Saudi Arabia’s Finance Minister, emphasized the sector’s expansion during the ninth edition of the Future Investment Initiative, pointing out that non-oil GDP now accounts for 52% of the Kingdom’s GDP.