Saudi GDP falls 1.8% in Q1 2024 despite increase in non-oil activities

Saudi Arabia’s real Gross Domestic Product (GDP) contracted by 1.8% annually in the first quarter of the year, primarily driven by a 10.6% drop in oil activities, according to flash estimates released by the General Authority for Statistics.

The drop comes despite an expansion in non-oil activities during the January to March period. In Saudi Arabia, non-oil activities increased by 2.8% and government activities by 2% on an annual basis. The Kingdom has been diversifying its economy away from oil.

But the seasonally adjusted real GDP increased by 1.3% on a quarterly basis in the same period. The change is driven by a 2.4% rise in oil activities, a 0.5% increase in non-oil activities and a 1% decline in government activities, according to Gastat.

Adapting Vision 2030 agenda to current geopolitics

Saudi Arabia, the largest economy in the Arab region, is intensifying its focus on economic diversification. Besides developing its non-oil sector, the Gulf state also recently said it is ready to adapt its Vision 2030 agenda to current economic and geopolitical challenges.

Speaking at a special meeting in Riyadh on Sunday, Saudi Finance Minister Mohammed Al Jadaan revealed the Kingdom’s decision to “downscale” or “accelerate” some of the projects being carried out under the ambitious programme.

The Saudi Vision 2030 relies on three key pillars:

1. A Vibrant Society

It is aimed at creating a vibrant society to help all citizens thrive and pursue their passions. The country seeks to find the perfect blend of cultural traditions, national pride, modern amenities, spirit of modern Islam and effective social services.

2. A Thriving Economy

Through Vision 2030, Saudi Arabia is looking to create a thriving economy to let everyone have the opportunity to succeed. The Kingdom aims to provide a supportive business environment and invest in education to prepare for the jobs of the future.

3. An Ambitious Nation

Saudi Arabia is also putting considerable efforts in creating an ambitious nation committed to efficiency and accountability at all levels, including building a government that is effective, transparent, high-performing, empowering and accountable.