Saudi economy rebounds with 1.3% growth in 2024 as non-oil sector expands

Saudi Arabia’s economy returned to growth in 2024, expanding by 1.3% after contracting in the previous year, driven by a recovery in non-oil activities, official data showed.

Growth resumed in the third and fourth quarters, supported by robust performance in trade, hospitality, financial services, and real estate, contributing to an overall 4.3% expansion in the non-oil sector. Non-oil commodity exports also increased, boosted by re-exports in the second half of the year.

Liquidity in the economy saw strong growth, fueled by higher net lending and credit facilities extended to both the government and private sector.

Fiscal position and spending

Government revenue reached SAR 302.9 billion ($80.7 billion) in the fourth quarter, with non-oil revenue rising 21% year-on-year to SAR 132 billion. Total revenue for 2024 stood at SAR 1.26 trillion, up 4% from 2023, while spending rose 6% to SAR 1.375 trillion.

Data from the General Authority for Statistics showed broad-based growth across sectors. Wholesale and retail trade, restaurants, and hotels posted the strongest gains, rising 6.4%, followed by financial services and insurance at 5.7%. Utilities expanded by 4.9%.

By contrast, crude oil and natural gas activities declined 6.4%. In terms of expenditure, private consumption rose 3.2%, government spending increased 3.0%, and gross fixed capital formation grew 2.6%.

Trade and GDP performance

Exports fell 1.4% in 2024, while imports climbed 5.0%. Saudi Arabia’s gross domestic product (GDP) at current prices reached SAR 4.07 trillion. Oil and gas remained the biggest contributor at 22.3%, followed by government activities at 16.2% and trade, hospitality, and restaurants at 10.3%.

GDP grew 4.5% in the fourth quarter compared to a year earlier, while seasonally adjusted GDP rose 0.5% quarter-on-quarter. Non-oil activities were the key growth drivers, expanding 4.7% year-on-year and 1.6% from the third quarter.

Oil sector output increased 3.4% year-on-year but fell 1.5% from the previous quarter. Government activities expanded 2.2% year-on-year and 0.6% quarter-on-quarter.