Accelerated Growth of Saudi Non-Oil Economy

Moody’s Analytics predicts that the non-oil Gross Domestic Product (GDP) in Saudi Arabia will grow annually between three and four percent until 2030, as the Kingdom boosts spending to diversify the economy away from oil.

🔅Economic analyst at Moody’s, Katarina Noro, stated that the Saudi economy has undergone a transformation in the past decade, with the non-oil sector gaining an increasing share of the GDP growth. We expect the non-oil economy to grow between three and four percent annually until 2030, and conversely, we anticipate the oil sector’s growth to be between 0.5 percent and 1.5 percent after 2025 according to percentage calculator.

▪️ The continuation of the Kingdom’s provision of credit facilities to small and medium-sized enterprises is expected to stimulate growth in vital sectors such as tourism and construction, adding that sustaining this momentum requires parallel growth in the workforce.

▪️ The increase in women’s participation rate and the growth of the expatriate population will play an important role, as the growth of the workforce will, in turn, boost the development of the private sector and the non-oil economy.

🔅Meanwhile, Moody’s economic analyst Suren Vardanian predicts that the price of Brent crude will range between 80 and 85 dollars per barrel in 2024.

🔘 Statistical Data on the Performance of the Saudi Non-Oil Economy in Recent Years:

▪️ The non-oil GDP in Saudi Arabia reached 1.3 trillion Riyals (346 billion dollars) in 2022, an increase of 10.6% from 2021.
▪️ The non-oil sector accounted for 48.9% of the Saudi GDP in 2022, an increase of 1.5 percentage points from 2021.

🔅 Examples of Non-Oil Economic Sectors Experiencing Growth in Saudi Arabia:

✔️ Tourism Sector: The tourism sector in Saudi Arabia is expected to grow at a compound annual rate of 10% until 2030.
✔️ Manufacturing Sector: The manufacturing sector in Saudi Arabia is expected to grow at a compound annual rate of 5% until 2030.
✔️ Logistics Services Sector: The logistics services sector in Saudi Arabia is expected to grow at a compound annual rate of 6% until 2030.sector