Saudi Arabia’s Non-Oil Economic Activities See 7% Surge in August 2024

RIYADH — Saudi Arabia’s non-oil sector witnessed robust growth in August 2024, recording a 7% year-on-year increase compared to the same month in 2023, according to a report released by the General Authority for Statistics (GASTAT) on Thursday. This surge was driven by gains across most non-oil economic activities, with the exception of water supply, sanitation, and waste management sectors, which saw declines.

However, the oil sector experienced a slight setback, with activities dropping by 1.4% compared to August 2023. On a month-to-month basis, oil activities dipped by 0.7% from July 2024, while non-oil activities grew by 0.6%, continuing the momentum of the Kingdom’s economic diversification efforts.

The report also highlighted an overall 1% growth in the country’s Industrial Production Index (IPI) for August 2024 compared to the same period last year. This growth was propelled by increased output in key sectors like mining and quarrying, manufacturing, and electricity, gas, steam, and air conditioning supply.

The manufacturing sector, in particular, posted a 1.1% year-on-year growth, buoyed by strong performances in chemical production and food manufacturing, which grew by 2.9% and 12.9% respectively. However, not all areas of manufacturing saw growth—activities in coke and refined petroleum products fell by 11.3% compared to last year.

On a monthly basis, the manufacturing sub-index dropped by 1.8% from July 2024, primarily due to a 6.4% decline in coke and refined petroleum product manufacturing, along with a slight 0.1% decrease in paper product manufacturing.

The report also showed a 4.1% annual increase in the electricity, gas, steam, and air conditioning supply index, reflecting rising energy demands. In contrast, the water supply, sanitation, waste management, and treatment sectors saw a slight year-on-year decline of 0.9%. However, both sectors recorded month-to-month gains from July 2024, with the electricity and gas index rising by 1.7% and the water supply and sanitation index up by 1.0%.

These figures underscore Saudi Arabia’s ongoing efforts to expand its non-oil economy in line with Vision 2030. Despite the slight downturn in the oil sector, the country’s non-oil industries are playing a pivotal role in sustaining economic growth.