Saudi Arabia’s GDP grew by 1.3% in 2024 compared to the previous year, according to data released today by the Saudi General Authority for Statistics.

This growth was driven by a boom in non-oil activities, which rose by 4.3%, along with a 2.6% increase in government activities. In contrast, oil activities declined by 4.5%, reflecting the impact of the production cut policy adopted by the OPEC+ alliance.

The fourth quarter of 2024 recorded strong growth of 4.5% compared to the same period last year, indicating a significant improvement in economic performance during the second half of the year.

The International Monetary Fund (IMF) had earlier projected in 2024 that the Saudi economy would grow by 1.5% this year, accelerating to 4.6% in 2025, supported by improving global demand and increased production in non-oil sectors.

Impact of Oil Prices

Despite the positive growth, forecasts still point to relatively weak economic performance in 2024 due to lower oil revenues and their impact on government income and investment spending.

The OPEC+ alliance, which includes Saudi Arabia, Russia, and other countries, plans to increase oil production in April 2025 after a series of cuts implemented since 2022 to support market stability.

Economic Sector Performance

Data from the General Authority for Statistics showed that most economic sectors experienced growth last year. The wholesale trade, restaurants, and hotels sector recorded the highest growth rate at 6.4%, followed by financial services, insurance, and business services at 5.7%, while water, electricity, and gas activities grew by 4.9%.

This diversified performance reflects the success of Saudi Vision 2030 in reducing reliance on oil while strengthening non-oil sectors as key drivers of economic growth.