MENA Newswire News Desk: Saudi Arabia’s non-oil activities surged by 4.9% year-on-year in the second quarter of 2024, propelled by robust growth in the financial and insurance sectors, according to the General Authority for Statistics (GASTAT). This expansion comes as part of the Kingdom’s ongoing efforts to diversify its economy, reducing its reliance on oil revenues.
The financial, insurance, and business services sectors led the growth with a 7.1% increase compared to the same period in 2023. This strong performance reflects Saudi Arabia’s strategic plan, Vision 2030, which aims to broaden the nation’s economic foundation. Non-oil activities also recorded a 2.1% rise compared to the previous quarter, further emphasizing the country’s progress toward economic diversification.
Despite the non-oil sector’s gains, Saudi Arabia’s overall GDP saw a modest year-on-year decline of 0.3% in the second quarter, attributed to an 8.9% drop in oil-related activities. The decrease follows the Kingdom’s decision to cut crude oil production by 500,000 barrels per day in April 2023, as part of its agreement with OPEC+. This production cut is set to continue until December 2024 in an effort to stabilize global oil prices.
On a quarter-to-quarter basis, Saudi Arabia’s seasonally adjusted GDP rose by 1.4%, supported by significant contributions from various sectors. GASTAT reported that crude oil and natural gas activities accounted for 23.2% of GDP, followed by government activities at 16%, and wholesale and retail trade, restaurants, and hotels, which contributed 10.1%.
Electricity, gas, and water sectors experienced an 8.9% increase in activity year-on-year, while the government sector grew by 3.6%. Government final consumption expenditure rose sharply by 10.9% year-on-year and 4.3% quarter-on-quarter, indicating increased public spending.
Gross fixed capital formation, a key indicator of investment in infrastructure and development, grew by 3.2% in the second quarter of 2024 compared to the previous year. Saudi Arabia remains committed to advancing its Vision 2030 objectives, focusing on further investments in financial services, energy, and infrastructure.