April 22, 2024 12:19 am
Saudi Arabia Reaches a Milestone in Diversifying Away from Oil-Based Economy

Saudi Arabia is experiencing a significant shift in its economy, as it moves away from relying solely on oil. The non-oil sector now accounts for 50% of the country’s GDP, marking a major milestone in its diversification efforts and progress towards achieving the goals set out in Vision 2030.

Incentives introduced by the government have helped promote 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 like entertainment, hospitality, and tourism has driven much of this growth, accounting for 40% of economic activity.

Despite this progress, 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. Mining and quarrying remain crucial sectors for the country, accounting for one-third of total non-oil output. Manufacturing, real estate, and construction also make significant contributions to the economy.

Overall, Saudi Arabia is making strides towards economic diversification and reducing its dependence on oil revenues.

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