Wednesday, March 20, 2024
For the first time, Non-Oil revenue in Saudi Arabia is now Half of its GDP
The kingdom of Saudi Arabia was widely recognized as the world's leading oil producer and held an excessively large market share. In terms of oil, the kingdom was still the go-to source for the United States, Europe, Asia, and Africa. Trending : Eid Al-Fitr 2024 is expected is likely to fall on this date in Saudi Arabia and Arab world
But early this year, Saudi Aramco, the state-run refinery, said that it will stop extending oil outputs. In an effort to diversify its revenue streams and increase GDP, the Kingdom is considering options other than oil exports.
- Now that non-oil revenue exceeds 50% of Saudi Arabia's GDP, it has accomplished its goal. In the year 2023, half of the nation's GDP came from other industries, according to the Ministry of Economy and Planning in Saudi Arabia.
- With oil consumption falling slightly over the world, it is crucial to diversify its economy. The world's oil production and supply units took a first hit with the arrival of electric vehicles (EVs). Recommend : Fine for transporting passengers without valid transportation license in KSA
- Approximately $453 billion, or 1.7 trillion Saudi Riyals, is the current valuation of Saudi Arabia's non-oil economy. A rise in non-oil revenues is related to rising investment, consumer, and export prices. There was also a record-breaking increase of 57% in private sector investments in the Kingdom, reaching 959 billion Saudi Riyals, or $254 billion.
- Furthermore, exports of arts and entertainment reached a triple-digit growth rate of 106%, while exports of real services reached a growth rate of 319%. The food industry as a whole expanded by 77%, with storage and transportation services seeing a 29% increase.
- Restaurants and hotels also had a 7% growth rate, while health and education witnessed a 10.8% growth rate. There was a 3.7% increase in Saudi Arabia's transport and communications. See Also : Do's and Dont's during Ramadan in Saudi Arabia
- The Saudi Arabian economy and GDP saw a 50% boost in the year 2023, with all these sectors contributing to the gain. Also, in an effort to attract tourists, Saudi Arabia is facilitating its policies and opening up to the tourism industry. Potentially contributing to economic growth and GDP in the years ahead is the tourist industry.
