Non-oil activity share in Saudi economy rises to 64% approaching 2030 targets

The real GDP in the Kingdom reached about 2.9 trillion riyals by the end of 2023, of which the share of non-oil production was 1.8 trillion riyals, representing 64%, while the total oil production amounted to 1.1 trillion riyals, representing 36%. The Kingdom’s Vision 2030 aims for the GDP to reach 6.5 trillion riyals, so that the share of non-oil activities is 76%, amounting to 4.9 trillion riyals, while the size of oil production is 1.5 trillion riyals, with a share of 24%.

The Kingdom’s vision aims to diversify the economy’s production base away from the effects of oil activities. In this context, it has established many strategic projects that have a strong impact on diversifying the GDP, including NEOM, which is planned to be a city with a special character and helps increase the growth of the share of non-oil activities in the economy by the end of 2030.

The initial cost of the NEOM project during the first phase is estimated at about 1.2 trillion riyals until the end of 2030. According to expectations, the NEOM project will be pumped from two sources: the state’s public finances and the Public Investment Fund, and financing from the financial market by offering some of the project’s companies after their completion.

While the other project, which is more ready than NEOM, is the Red Sea and Amaala destinations. The two projects are considered touristic in nature and are on the Red Sea coasts. The Kingdom aims to attract more tourists, and the Ministry of Tourism has raised the target to 150 million visitors annually by the end of 2030.

The cost of the Red Sea and Amaala projects during the first phase is estimated at about 110 billion riyals, while the total cost of the project is expected to reach 200 billion riyals.

The other project that has a significant impact on the GDP is the Qiddiya project. The project has an entertainment, cultural and sports character. The Qiddiya project is expected to contribute approximately 135 billion riyals to the GDP, while it is targeted to attract visitors with about 48 million visits annually. The project size is estimated at 360 square kilometers.

While the Diriyah project is considered one of the strategic projects that have a significant impact on the GDP, more specifically on the tourism sector. The project is estimated to be worth more than 236 billion riyals and has a significant impact on non-oil activities if all phases of the project are completed.

On the other hand, Roshn projects have a significant impact on the construction sector. Roshn aims to build more than 400,000 housing units by the end of 2030 and raise the percentage of citizen ownership to 70%. The Roshn project is considered one of the projects that has a significant impact on all economic activities. The Kingdom seeks to increase the attractiveness of industrial sectors and ports and benefit from the country’s strategic capabilities. The Kingdom’s vision, through the Nadlib program, aims to benefit from its coasts and maximize the benefit from its ports on the Red Sea. The Nadlib program also aims to maximize the benefit of the mining sector in the Kingdom, as the value of minerals is estimated at approximately 9.3 trillion riyals. This helps to increase the contribution of the mining sector to the gross domestic product by 2030, while the program aims to increase the productivity and attractiveness of the industrial sector by facilitating investment and legislation and creating an attractive environment for industry. While the other project, which is more ready than NEOM, is the Red Sea destination and Amaala. The two projects are considered to have a touristic character and are on the Red Sea coast. The Kingdom aims to attract more tourists, and the Ministry of Tourism has raised the target to 150 million visitors annually by the end of 2030. The cost of the Red Sea and Amaala projects during the first phase is estimated at approximately 110 billion riyals, while the total cost of the project is expected to reach 200 billion riyals. The other project that has a significant impact on the GDP is the Qiddiya project. The project has an entertainment, cultural and sports character. The Qiddiya project is expected to contribute approximately 135 billion riyals to the GDP, while it is targeted to attract visitors with about 48 million visits annually. The project size is estimated at 360 square kilometers.

While the Diriyah project is considered one of the strategic projects that have a significant impact on the GDP, more specifically on the tourism sector. The project is estimated to be worth more than 236 billion riyals and has a significant impact on non-oil activities if all phases of the project are completed.

On the other hand, Roshn projects have a significant impact on the construction sector. Roshn aims to build more than 400,000 housing units by the end of 2030 and raise the percentage of citizen ownership to 70%. The Roshn project is considered one of the projects that has a significant impact on all economic activities. The Kingdom seeks to increase the attractiveness of industrial sectors and ports and benefit from the country’s strategic potential. The Kingdom’s vision, through the Nadlib program, aims to benefit from its coasts and maximize the benefit from its ports on the Red Sea. The Nadlib program also aims to maximize the benefit of the mining sector in the Kingdom, as the value of minerals is estimated at approximately 9.3 trillion riyals. This helps to increase the contribution of the mining sector to the gross domestic product by 2030, while the program aims to increase the productivity and attractiveness of the industrial sector by facilitating investment and legislation and creating an attractive environment for industry.