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Saudi Arabia’s non-oil economy leaves oil sector behind

Saudi Arabia's economic diversification efforts are bearing fruit
 

Saudi economy's diversification shows progress  

Saudi Arabia has reached a significant milestone in its Vision 2030 journey, with its non-oil economy now surpassing the oil sector in size, according to Saudi Minister of Economy and Planning, Faisal Al Ibrahim. He made this announcement during a dialogue session titled ‘What do we expect from future growth?’ at the annual meeting of the New Champions Dalian 2024, an initiative of the World Economic Forum in Dalian, China.

Al Ibrahim highlighted the robust growth of non-oil sectors, which now constitute 51 percent of the country’s real gross domestic product (GDP). He emphasized the substantial economic strides made since the inception of Vision 2030, noting a remarkable 8.7 percent economic growth rate in 2022, with non-oil activities expanding by 5.6 percent. This marks a pivotal shift where Saudi Arabia's non-oil economy now exceeds its oil sector in size.

 

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Launched by the government in 2016, Vision 2030 aims to diversify the economy away from oil dependence, structured around three main pillars: a vibrant society, a thriving economy, and an ambitious nation.

Reflecting on the achievements, Al Ibrahim remarked, "We have crossed the halfway mark towards achieving our Vision, marked by substantial milestones and prioritised efforts accelerating economic diversification and human capital development. We are poised at the threshold of a new economic era, promising transformative changes over the decades ahead."

 

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He also addressed Saudi Arabia's role in energy security and climate action, highlighting the country's leadership in producing the cleanest hydrocarbon energy and its pioneering efforts in renewable energy, including green hydrogen, solar, wind, and other sources.

Source: Arab News

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