• Sun. Apr 21st, 2024

Saudi Arabia Achieves Crucial Milestone in Diversifying Economy: Non-Oil Sector Accounts for 50% of GDP in 2023

BySamantha Jones

Apr 2, 2024
Saudi Arabia Reaches a Milestone in Diversifying Away from Oil-Based Economy

Saudi Arabia is undergoing a significant shift in its economy as it moves away from relying solely on oil. For the first time in 2023, the non-oil sector accounted for 50% of the country’s GDP. This marks a crucial milestone in the country’s diversification efforts and its goal of reducing dependency on fossil fuels.

Government data shows that the non-oil sector achieved a real GDP growth rate of 4.4% last year, reaching approximately 1.7 trillion Saudi riyals. The government has introduced incentives to support the growth of services and manufacturing industries, which are seen as vital for creating job opportunities for the country’s young and educated population.

Private consumption in sectors such as entertainment, hospitality, and tourism drove much of the non-oil sector’s growth last year, accounting for 40% of economic activity. The tourism sector, in particular, has seen significant growth with $13 billion in private investments and attracting millions of visitors both domestically and internationally.

Despite these achievements, Saudi Arabia experienced a 4.3% decline in real GDP in 2023 due to reduced activity in the oil sector caused by production cuts by OPEC countries. However, mining and quarrying remain crucial sectors for the country, accounting for one-third of total non-oil output, while manufacturing, real estate, and construction also make significant contributions to the economy. Overall, Saudi Arabia is making progress towards economic diversification and reducing its dependence on oil revenues.

In conclusion, Saudi Arabia’s economy is undergoing a significant shift away from reliance on oil as it continues to diversify its sectors and reduce dependency on fossil fuels through incentives introduced by the government to promote services and manufacturing industries while private consumption drives much of economic growth last year with $13 billion investment in tourism alone.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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