Saudi Arabia’s non-oil activities expanded 4.9 percent year-on-year in the second quarter of 2024, driven by gains in the financial and insurance sectors, official data showed.

According to data from the General Authority for Statistics (GASTAT), and published by Arab News, the financial, insurance, and business services sectors surged 7.1 percent in the second quarter compared to the same period last year.

Non-oil activity also rose 2.1 percent compared to the previous quarter, reflecting the Kingdom’s efforts to broaden its economic base.

The non-oil sector’s growth aligns with Saudi Arabia’s Vision 2030, a strategic plan aimed at reducing the country’s reliance on oil revenues.

The report further revealed that Saudi Arabia’s seasonally adjusted gross domestic product increased by 1.4 percent in the second quarter compared to the first.

However, GDP saw a slight year-on-year decline of 0.3 percent in the same period, largely due to an 8.9 percent drop in oil activities following the Kingdom’s decision to cut crude output in line with OPEC+ agreements.

To stabilize the market, Saudi Arabia reduced oil production by 500,000 barrels per day in April 2023, a cut that has been extended until December 2024.

GASTAT also noted that the Kingdom’s GDP at current prices reached SR1.02 trillion ($270 billion) in the second quarter.

“Crude oil and natural gas activities achieved the highest contribution to the GDP at 23.2 percent, followed by government activities at 16 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” stated GASTAT.

Government activities increased by 3.6 percent year-on-year and by 2.3 percent quarter-on-quarter.

Meanwhile, electricity, gas, and water activities saw an 8.9 percent rise year-on-year, while wholesale and retail trade, restaurants, and hotels grew by 6.8 percent.

The report also highlighted that government final consumption expenditure rose by 10.9 percent year on year and 4.3 percent quarter on quarter.

In the second quarter, gross fixed capital formation increased by 3.2 percent compared to the same period last year.

With continued investments in key sectors such as financial services, infrastructure, and energy, Saudi Arabia remains focused on achieving the goals set out in its Vision 2030 blueprint.

WAM