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11-06-23

Saudi Arabia's Non-Oil Sector Drives Economic Growth in Q1 2023

(MENAFN) According to a recently released report by the General Authority for Statistics (GASTAT), Saudi Arabia experienced a notable increase in its real gross domestic product (GDP) during the first quarter of 2023. The report revealed that the Kingdom's GDP grew by 3.8 percent year over year during this period, with the expansion primarily driven by the growth of non-oil activities.

The non-oil sector in Saudi Arabia demonstrated robust performance, expanding by 5.4 percent in the first three months of 2023 compared to the same period in the previous year. This growth in non-oil activities also represented a 1 percent increase when compared with the final quarter of 2022. The significant expansion of the non-oil sector reflects the Kingdom's commitment to diversifying its economy and reducing its reliance on oil revenues, as outlined in its ambitious Vision 2030 initiative.

The report further highlighted that while the non-oil sector experienced positive growth, Saudi Arabia's real GDP witnessed a decrease of 1.4 percent in the first quarter of 2023 compared to the previous quarter. This decline could be attributed to various factors influencing the overall economic landscape during that specific period.

The Kingdom's emphasis on strengthening the non-oil private sector aligns with its long-term vision of creating a more diversified and sustainable economy. By focusing on sectors beyond oil, such as manufacturing, tourism, finance, and technology, Saudi Arabia aims to stimulate economic growth, attract foreign investment, and create job opportunities for its citizens. The positive growth of the non-oil sector in the first quarter of 2023 signifies progress towards achieving these objectives.

As Saudi Arabia continues its economic diversification efforts, the performance of the non-oil sector remains crucial. By nurturing and supporting non-oil activities, the Kingdom aims to reduce its economic vulnerability to fluctuations in global oil prices and create a more resilient economy. The sustained growth observed in the non-oil sector during the first quarter of 2023 reinforces the belief that Saudi Arabia is on the right track in achieving its economic diversification goals outlined in Vision 2030.
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