Saudi Arabia’s non-oil activities increased by 3.5 per cent in the third quarter of 2023, compared to the same period of the previous year, as the kingdom steadily diversifies its economy away from oil, official data showed.
According to a report released by the General Authority for Statistics, Saudi Arabia’s non-activities also rose by 0.4pc in the third quarter compared to the previous quarter of this year. Strengthening the non-oil private sector is crucial for Saudi Arabia, aligning with the goals outlined in Vision 2030 as the kingdom continues to diversify its economy.
However, the report noted that Saudi Arabia’s real gross domestic product decreased by 4.4pc year-on-year in the third quarter, and by 3.2pc compared to the previous quarter.
This decline is attributed to a 17pc decrease in oil activities during the third quarter, following the kingdom’s decision, in alignment with the Organisation of the Petroleum Exporting Countries, to reduce oil output.
The commitment to a 500,000 barrels per day output cut, initiated in April and extended until December 2024, contributed to this reduction.
Additionally, Saudi Arabia pledged an extra 1 million bpd cut in July, with the Ministry of Energy announcing in November that this supplementary cut would continue until the end of December 2023.
The GASTAT report indicated that government activities, the second-highest contributor to real GDP at 15.3pc, grew by 1.9pc in the third quarter compared to the same period last year.
However, government activities experienced a 3.8pc decline in the third quarter compared to the second quarter of this year.
Furthermore, the report noted positive growth rates in most economic activities during the third quarter.
Community, social, and personal services activities grew by 11.8pc year-on-year, while finance, insurance, and business services increased by 6.2pc.
Wholesale and retail trade, restaurants, and hotel activities also rose by 5.4pc during the same period.