Saudi Arabia. “Non-Oil” Industries Reach 50% of GDP

Saudi Arabia, whose wealth has traditionally been based on the oil and gas industry, is now seeking to diversify its economy and is investing massively in non-hydrocarbon sectors. And the results of the new economic policy, which involves, among other things, opening up the kingdom to China, India, and the West, were not long in coming: as the Ministry of Economy and Planning in Riyadh announced in 2023, the so-called “non-oil industries” contributed 50% to the country’s gross domestic product.

According to the Kingdom’s Minister of Planning and Economy, Faisal F. Alibrahim, “this is the highest level ever achieved.” Last year, the contribution of Saudi Arabia’s non-oil economy was estimated at about $453 billion. Private sector investment inflows increased 57% between 2022 and 2023, reaching a record $254 billion last year. In particular, the tourism and related services sector has more than tripled in the last two years.

On March 1, Saudi Arabia received “international praise and recognition” from the World Tourism Organization and the World Travel and Tourism Council for its outstanding achievements in welcoming more than 100 million tourists in 2023. This achievement immediately positions Saudi Arabia as an emerging global tourist destination. Riyadh’s Ministry of Tourism announced that the Kingdom had reached the milestone “seven years ahead” of its original target. Encouraged by this success, Saudi Arabia has set a new ambitious goal of welcoming 150 million tourists by 2030.

Tourism has proven to be a significant contributor to Saudi Arabia’s economy, bringing more than $67.5 billion to the country in 2023. This figure represents 6.71% of non-oil GDP and reflects the crucial role of tourism in diversifying Saudi Arabia’s economy.