Saudi Arabia’s real gross domestic product (GDP) grew by 1.4 percent in the first quarter of 2024 compared to the previous quarter, according to the General Authority for Statistics (GASTAT). The Kingdom’s non-oil activities also rose by 0.9 percent during the same period and increased by 3.4 percent year-on-year. The GDP for the first quarter amounted to SR1.01 trillion ($270 billion), with crude oil and natural gas activities contributing the highest share at 23.4 percent, followed by government activities at 15.8 percent and wholesale and retail trade, restaurants, and hotels at 10.4 percent. However, compared to the same period last year, the GDP declined by 1.7 percent.
Strengthening the non-oil private sector is crucial for Saudi Arabia as it seeks to diversify its economy away from oil dependency. The report highlighted a 2 percent year-on-year rise in government activities in the first quarter, despite a 1.1 percent decline from the previous quarter. Saudi Arabia’s oil activities increased by 1.7 percent quarter-on-quarter but dipped by 11.2 percent year-on-year due to production cuts aligned with the Organization of the Petroleum Exporting Countries and its allies (OPEC+). These cuts, including a reduction of 500,000 barrels per day starting in April 2023, have been extended until December 2024 to maintain market stability. Projections from the International Monetary Fund and the World Bank estimate that Saudi Arabia’s economy will grow by 2.6 percent in 2024 and up to 6 percent by 2025.