Saudi Arabia’s GDP Grows 4.4% in Q4 2024, Highest in Two Years

Riyadh – Saudi Arabia’s real gross domestic product (GDP) expanded by 4.4% year-on-year in the fourth quarter of 2024, marking its strongest growth in two years, according to preliminary estimates from the General Authority for Statistics (GASTAT).

Non-Oil Sector Leads Growth

The Kingdom’s non-oil sector played a crucial role in driving economic expansion, growing by 4.6% year-on-year during the three-month period ending in December. This aligns with Saudi Arabia’s Vision 2030, which aims to reduce dependence on oil revenues and foster a more diversified economy.

Meanwhile, oil activities increased by 3.4% in Q4 compared to the same period in 2023, while government activities recorded a 2.2% rise. However, compared to the third quarter of 2024, oil activities saw a decline of 1.5%, reflecting the impact of OPEC+ production cuts.

On a quarterly basis, the Kingdom’s seasonally adjusted GDP grew by 0.3% in Q4, with non-oil activities rising by 1.3% and government activities increasing by 0.3%.

Full-Year 2024 Performance and Regional Trends

For the full year 2024, Saudi Arabia’s GDP grew by 1.3% compared to 2023. The non-oil economy expanded by 4.3%, reinforcing the Kingdom’s efforts to diversify its economic base. Government activities also rose by 2.6%, but oil activities contracted by 4.5% due to reduced production under OPEC+ agreements.

The Kingdom’s growth figures are in line with broader regional trends. The UAE’s central bank projects 4% GDP growth in 2024, while Bahrain and Qatar reported year-on-year expansions of 2.1% and 2%, respectively, in the third quarter. Qatar’s full-year GDP grew by 1.7%, supported by a 1.9% rise in non-hydrocarbon activities.

Future Outlook: Continued Diversification and Investment

Looking ahead, economic growth in Saudi Arabia is expected to accelerate. The International Monetary Fund (IMF) forecasts that the Kingdom’s GDP will expand by 3.3% in 2025 and 4.1% in 2026, as global oil markets stabilize and non-oil sectors continue to expand.

A separate report from Mastercard Economics, published in December, projects Saudi GDP growth of 3.7% in 2025, emphasizing the strength of non-oil sectors as a key driver. The report also highlights the government’s fiscal strength, which is expected to support infrastructure development and investment opportunities.

As Saudi Arabia continues to prioritize economic diversification, experts believe that sectors such as tourism, technology, and manufacturing will play a pivotal role in shaping its long-term economic trajectory.