Economy

Non-oil economy drives growth as Saudi GDP rises 2.8%

December 9, 2024, 4:39 PM

Growth in non-oil GDP drove the Saudi economy in Q3, led by retail — Growth in non-oil GDP is driving the Saudi economy, led by the retail and leisure sector

5.8% increase for retail and leisure
Followed by finance and construction
Oil GDP edges up 0.05% in Q3

Saudi Arabia has reported a 2.8 percent increase in real GDP for the third quarter of 2024, with non-oil activities driving the year-on-year growth.

Seasonally adjusted real GDP was up 0.9 percent on the second quarter, according to Riyadh’s General Authority for Statistics.

Non-oil GDP was 4.3 percent higher year on year and 0.7 percent higher than in Q2 2024.

Oil GDP, which constitutes 22.8 percent of Saudi Arabia's economy, rose by just 0.05 percent in Q3.

Retail and leisure recorded the fastest growth, with a 5.8 percent rise for the wholesale and retail trade, restaurant and hotel sector. Next came finance, insurance and business services with a 5.7 percent increase and construction with a 4.6 percent rise.

Saudi Arabia’s GDP stood at SAR1,007 billion ($268.5 billion) in the third quarter of 2024.

Oil activities remain the biggest contributor to GDP, followed by government activities at 16.1 percent and wholesale and retail trade, restaurant and hotel activities at 10.1 percent.

Saudi Arabia’s imports were 7.3 percent higher year on year and 3.8 percent higher than in Q2 2024. Exports have risen by 3 percent since the third quarter of 2023, but dropped by 5.7 percent compared with the previous quarter.

The S&P Saudi Arabia Purchasing Managers’ Index – a measure of non-oil private sector performance – hit a 16-month high in November.

Naif Al Ghaith, chief economist at Riyad Bank, said the rise showed the success of Saudi Arabia's economic diversification efforts. “The acceleration in purchasing activity and inventory expansion suggests businesses are gearing up for continued growth in demand.”