Saudi non-oil sectors reach 55% of GDP for first time

what happened

According to Zawya, citing Saudi Gazette, Saudi Deputy Finance Minister Abdulmohsen Al-Khalaf said non-oil activities had reached 55% of the country’s GDP for the first time. Speaking Monday at the World Petroleum Congress in Riyadh, he described the result as a structural change reflecting progress in economic diversification since Vision 2030 was launched.

Al-Khalaf said non-oil government revenue had increased from about SR166 billion ($44.3 billion) in 2015 to roughly SR500 billion ($133.3 billion) currently. Unemployment among Saudi citizens fell to approximately 6%, a record low, as labor-market conditions continued to improve. He also pointed to growth in tourism, entertainment, sports, technology, artificial intelligence and data centers.

For markets, the statement highlights the expansion of Saudi Arabia’s economic base beyond oil. The official linked stronger non-oil revenue and lower unemployment with greater resilience and a better ability to absorb economic shocks, although the report contains no new forecasts for oil output or prices.

why it matters

The figures are relevant to how investors assess Saudi Arabia’s diversification efforts and its sensitivity to changes in the oil market. They do not, however, provide a new outlook for oil supply or prices.

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