Saudi Arabia: Saudi Arabia’s seasonally adjusted real gross domestic product grew by 1.4 percent in the second quarter of 2024, compared to the previous three months, driven by non-oil activities, official data showed.  

According to the General Authority for Statistics, the Kingdom’s oil activities grew by 1.3 percent quarter-on-quarter from April to June, while non-oil operations expanded by 1.4 percent during the same period.  

Government activities increased by 3.2 percent in the second quarter of this year, compared to the previous three months, the report revealed. 

Strengthening the non-oil sector is crucial for Saudi Arabia as it embarks on an economic diversification journey to reduce its dependence on crude revenues. This transformation is essential for building a more resilient economy that can withstand global oil market fluctuations and ensure sustainable growth for the future.

In March, Saudi Arabia’s Minister of Economy and Planning, Faisal Al-Ibrahim, said that non-oil economic activity contributed 50 percent to the Kingdom’s GDP in 2023, the highest level ever. 

The report also highlighted that the Kingdom’s GDP contracted by 0.4 percent in the second quarter compared to the same period last year, attributed to an 8.5 percent decline in oil activities. 

GASTAT, however, noted that non-oil activities expanded by 4.4 percent year-on-year in the second quarter. 

The decline in oil activities was due to Saudi Arabia’s decision to reduce crude output, aligned with an agreement by OPEC and its allies, known as OPEC+.  

To maintain market stability, the Kingdom reduced its oil output by 500,000 barrels per day in April 2023, and this cut has been extended until December 2024. 

Government activities in Saudi Arabia increased by 3.6 percent in the second quarter compared to the same period in 2023. 

Earlier this month, another report by GASTAT noted that Saudi Arabia’s Industrial Production Index increased by 0.9 percent in May compared to the previous month. 

However, the overall IPI declined by 2.9 percent in May compared to the same month last year, driven by a fall in oil activities.