The General Authority for Statistics (GASTAT) has announced that Saudi Arabia’s real gross domestic product (GDP) grew by 1.3% in 2024, marking the highest annual growth rate in two years, according to its latest annual and quarterly national accounts report. The growth was largely fueled by a strong performance in non-oil activities, while the oil sector contracted significantly.
Annual Economic Growth
Saudi Arabia’s real GDP rose by 1.3% in 2024 compared to the previous year. This growth was mainly driven by a 4.3% expansion in non-oil activities and a 2.6% increase in government services. In contrast, the oil sector shrank by 4.5%, reflecting the Kingdom’s ongoing push to diversify its economy and reduce dependence on crude oil revenues.
Quarterly Performance
During the fourth quarter of 2024, real GDP increased by 4.5% year-on-year, driven by broad-based economic expansion. Non-oil activities posted a robust growth rate of 4.7%, while oil activities grew by 3.4%, and government services increased by 2.2% compared to the same quarter in 2023.
Seasonally Adjusted Growth
On a quarter-on-quarter basis, seasonally adjusted real GDP rose by 0.5% in Q4 2024 compared to Q3, suggesting a steady positive momentum in economic performance.
Sectoral Highlights
Most economic sectors recorded positive growth throughout 2024, reflecting the success of Saudi Arabia’s Vision 2030 initiatives and recent regulatory reforms. The growth also highlights the tangible progress made in mega projects and national strategies aimed at long-term transformation.
Vision 2030 in Action
These promising results underscore the Kingdom’s commitment to achieving the objectives of Vision 2030, which seeks to build a prosperous and diversified economy. The continued momentum also demonstrates Saudi Arabia’s ability to adapt to global challenges while maintaining a path of sustainable development.
Implications for the Economy
The notable growth in the non-oil sector is a clear indicator of the success of government efforts to broaden the Kingdom’s economic base. Meanwhile, the increase in government-related activities reflects substantial public investment in infrastructure and development projects, further supporting long-term resilience and economic strength.
